Take the next step towards buying your second property

Whether you want to sell your current home and move elsewhere, or add to your property portfolio, you’ve got a couple of options to help make it easier. Your existing home could even help you with your next deposit. Take a look at how to get started and the things to keep in mind.

Buying another property

You’ll need another home loan, but you might not need another deposit – you could use the equity in your existing home instead. This will depend on the value of the second home and the amount of equity you hold in the first, plus the purpose of your new property.

Investing in a rental

This can be a smart financial move, but there’s a few things to think about – like which areas have high renter demand, and the fact that you’ll pay investor interest rates. Your Home Finance Manager can talk you through your options.

The holiday house

Getting a loan for a holiday house is a bit different to other home loans. To find out if you’re eligible, you’ll need to speak to your Home Finance Manager.

Selling and moving

If your next deposit is more than the funds from the sale of your house, you’ll need to chip in some cash as well.

Make sure you’re ready for any changes to your existing expenses. Think about how much you currently spend on your mortgage repayments, insurance, maintenance, rates, commuting and other costs. Compare this to your new repayments to make sure moving is the right decision for you.

Simultaneous settlement

Same day, simultaneous settlement is ideal. It’s when the sale of your current home and the purchase of your new home happen on the same day, so the funds just move from one loan to the other. It also means you won’t have to pay two mortgages at once, or rent a place in between selling and buying. Talk to your Home Finance Manager and settlement agent to see if they can help you make it work.

If it’s not possible, your Home Finance Manager can help you look into other options - like bridging finance. This is a short term loan to cover you in-between selling your house and buying your new one.

Things to keep in mind

There are always costs involved when buying and selling properties – things like bank, settlement and transfer of land fees, plus stamp duty. Take a look at our guide to upfront home buying costs.

Getting the right information from the beginning can make the process a lot smoother. Think about:

  • Talking to your Home Finance Manager
  • Having your current home valued by an expert
  • Checking out different neighbourhoods you’d consider buying in
  • Researching the local market you’re interested in.

Ask an expert

Get in touch with one of our Home Finance Managers, and they'll respond within one business day.

Things you should know

The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.