Property Upgrade Home Loan

Are you looking to upsize your existing home? Perhaps you’ve got a growing family or want to move into an area with properties that are more expensive. There are a number of options for you depending on if you plan on selling your existing home vs keeping it as an investment property, as well as the types of loans you can borrow.

Selling your existing home

If you decide to upgrade your property by selling your existing home, you have the option to sell first, buy later or buy first, sell later. Each option has its advantages and disadvantages.

If you sell first, you’ll know exactly how much money you have to spend on your new property, and won’t need to pay off two home loans at any given time. However, you’ll have a limited time to buy your new home before your existing home settles, or you may have to pay for costs such as rent, additional moving, and/or storage.

If you buy before you sell, you may need to pay off both home loans until your existing home sells. However, there’s no guarantee when your home will sell or that it will sell at the price you’re seeking. In this case, a bridging loan may be a good option to provide you the funds you need to buy your new home before you sell your existing home.

Keeping your existing home as an investment property

In addition to bridging loans and investment loans, there are two other options to help you finance your property upgrade.


A property upgrade triggers a review of your home loan and an opportunity to refinance. Refinancing simply means taking out a new home loan, generally to get a better deal in terms of interest rates and loan features.

Refinancing can help you reduce your loan repayments by getting you a more competitive interest rate, potentially saving you hundreds and thousands of dollars a year. Depending on your home loan, you may need to pay a fee to switch your loan, so it’s important to weigh up the costs and benefits of your decision.

For more info, click here to learn more about refinancing home loans.

Loan portability

Most home loans these days offer you the ability to carry your loan to your next home when you move. If you’re happy to stay with your existing loan and lender, especially if you’re able to negotiate a lower interest rate, then you do not need to refinance. Your loan will be topped up with the balance of the new home, but the terms of your loan will remain the same.

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