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

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.

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.

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.

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? 

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)
Things to consider
  • you could overcapitalise, spending more money on your home than it’s worth.
  • 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