Top Tips to Financing a New Home Before Selling

Rarely does buying a new home coincide neatly with selling your old one. You can easily find yourself with two properties and two mortgages to pay because you’ve under estimated the selling period or jumped into a purchase.

If you’re considering selling your home and buying another but are unsure how to juggle your finances, the following tips may help:

Extended settlement period
Check with the seller of your new home to see if they will allow an extended settlement period. This will give you more time to find a buyer for your current home.

Look into bridging finance
This is a short-term loan – typically six to 12 months – which covers both the existing and new debt. Do your homework on loan features, conditions and structures because they do vary between lenders.

Home loan health check
A loan health check may reveal savings to be made by moving to a different loan with a lower interest rate.

Compare lenders’ offerings
While incentives to keep all your finances with one lender may be appealing, it is important to shop around. Eager for your business, a new lender may offer a better rate, fees, features and/or service.