Getting started

Like any big decision, it pays to sit down and make a plan before you buy another property. Whether you're looking to upgrade because you’ve built up equity in your home, you’re relocating for work or your family is expanding and you want to be in the right school zone for your kids, take the time to ask yourself lots of questions.

Don’t forget, we have Mobile Mortgage Managers who can come to you and talk through your finances and options, so give them a call. 

Make a plan

Make a plan

Getting your plans sorted is always a great first step, so when you’re gearing up to buy your next home think about the process of selling your current one too. Or, whether it might be worth keeping as a rental property. Here are three strategies to consider.

1.  Selling your home before you buy the next

Selling before you buy means you can avoid having to cover two mortgages at once.

If your current home loan is with us, you have the option of portability. This means you may be able to ‘take the loan with you’ when you move, saving you the cost and inconvenience of establishing a new loan, and you’ll retain the existing account number.

Have a talk with us to find out what will suit your home loan best, if you’re thinking of selling your home before buying again.

2.  Buying a new home before you’ve sold your current one

If there’s likely to be a gap between buying your new home and getting the money from the sale of your current home, we may be able to increase your Choices home loan for a short time, or help with bridging finance. Bridging finance is an interest-only loan for a short term to help ‘bridge’ the gap when you have mortgages over two homes.

Paying mortgages for two homes at the same time may not be easy. So if you’re thinking of buying a second home before selling your curent home, please talk to us well in advance (before you sign anything) to see how we can help.

3.  Keeping your home as an investment, and buying another

If you do the maths you might be surprised to find that keeping your current home as an investment property can be within your reach, and you could potentially use the equity in your home as the deposit for the home loan for your new one.

Hop over to the ‘Options besides selling’ tab on this page, or get more detailed information about equity and owning a rental property in the Invest in Property section.

Get a full Home Loan health check

Before you list your home for sale, talk to one of our Mobile Mortgage Managers or pop into branch to get a full health check of your home loan as it stands. They may also be able to give you a conditionally approved limit for buying your next home, and talk through all your options including bridging finance if you need to buy a new home before your current one has sold.

Options besides selling

Could you renovate, subdivide or make it a rental?

Before you decide to sell, here are a couple of things to think about first: could you get the home you want by renovating instead? Or would keeping your current home as a rental be a good investment? Moving home does cost money, so have a think about all your options first.

Review the costs of moving

The good and the not-so-good of renovating

Advantages
  • renovating can make your home feel brand new, and give you just the home you want
  • moving your home can be a huge job, taking up your time and energy with everything from house hunting to packing up (and unpacking at the other end)
  • save money. Moving could cost thousands of dollars, while estate agents’ fees could be 4% or more of the price you sell your home for.
Things to consider
  • you could overcapitalise, spending more money on your home than it’s worth. If your home ends up being the nicest house on the street, you may not get all your money back when you sell
  • renovating isn’t for everyone, and it can be hard living in a home during renovations
  • if you have to move out of your home during renovations, it could add quite a bit of cost to the project budget.

Learn more about building and renovating

Could it be subdivided?

The value of your property is likely to increase if your section can be subdivided, as another home could be built on the land and sold. Subdividing is likely to attract consent fees, so check it out with your local authority first.

Owning a rental property

Have you thought about keeping your current home as an investment property? It might be more affordable than you think. You’ll want to start by working out how much you could get in rent for your home – the Department of Building & Housing is a great resource for this – and whether that rent would cover your costs, as well as things like how much equity you currently have in your home.

Check out the Investing in property section, or get one of our Investment Property Lending Specialists to come to you to work out where you stand.

Read about investing in property

Would your home make a good rental?

A good place to start is by asking yourself some key questions:

  • is it in a good, safe area?
  • are there facilities nearby such as shops, a medical centre, or sports grounds?
  • is it close to public transport?
  • is it in good condition?
  • is it a low maintenance property?
  • are the living areas a reasonable size?
  • does it have 2-3 bedrooms?
  • is there a garage or off-street parking?
  • how much rent could I expect to get? (Our Property Investor Report could help you here.)
  • would the rent cover the loan, rates, insurance and upkeep for the property? (Try our Property Investment calculator).

If you’ve answered mainly ‘yes’, the chances are your home has reasonable rental potential. Research is key, and you can learn more in our Invest in Property section.

Read about investing in property