Finance for your next home

Finance for Upsizing to Your Next Perth Home

Moving to a larger or more suitable home can involve more than arranging a new mortgage. You may need to coordinate the sale of your current property, understand your available equity, prepare for a new purchase and manage the timing between two settlements.

LnL Finance helps Perth homeowners review their current lending position, understand potential borrowing options and prepare for the finance involved in moving to their next home.

Whether you plan to sell first, buy first or retain your existing property, the appropriate approach depends on your circumstances, lender requirements and the timing of each transaction.

Plan Your Next Home Purchase

Start With Your Current Position

Before determining a purchase budget for your next home, it is important to understand your current property and mortgage position.

A review may consider:

The estimated value of your current property
The amount owing on your existing home loan
Potential selling costs
Your available savings
Current income and expenses
Other debts and credit limits
Your preferred purchase price
The estimated deposit and buying costs
The repayment level you feel comfortable managing
Whether you intend to sell or retain your current home

An estimated property value is not the same as a confirmed sale price or formal lender valuation.

Your available funds may change depending on the eventual sale price, selling costs, existing mortgage payout and settlement adjustments.

Understanding Your Available Equity

Equity is generally the difference between the value of a property and the amount owing against it.

However, the amount of equity that may be available for another property purchase depends on factors including:

The lender’s accepted property valuation
The existing loan balance
The proposed loan-to-value ratio
Your income and expenses
Other financial commitments
The purpose of the additional lending
Property type
Lender policies
Your capacity to service the proposed debt

Having equity does not automatically mean that the full amount can be borrowed or used as a deposit.

Request an Equity and Borrowing Review

Three Common Ways to Move to Your Next Home

Option 1: Sell Your Current Home Before Buying

Selling first may provide greater certainty about:

The actual sale price
The mortgage payout
Selling costs
Net sale proceeds
The deposit available for the next purchase
The size of the new mortgage required

Potential considerations include:

Finding temporary accommodation
Moving more than once
Storage costs
Pressure to find the next home before settlement
The possibility of property prices changing while you search
Aligning the sale settlement with the next purchase

Selling first does not remove all finance risks. The new purchase and lending still require assessment and approval.

Option 2: Buy Your Next Home Before Selling

Buying first may allow you to secure the preferred property before selling the existing home.

However, this approach can involve:

Carrying two properties temporarily
Larger temporary repayments
Reliance on the expected sale of the existing property
Conservative treatment of the expected sale price
Additional lender assessment
Temporary funding requirements
Greater sensitivity to settlement delays
A risk that the existing property sells for less than expected

Do not assume a future sale price will be accepted by the lender. The lender may require valuations, evidence of a sale campaign or a signed sale contract.

Option 3: Retain Your Existing Home as an Investment

Some homeowners consider retaining the current home and purchasing another property to live in.

This can significantly change the lending and financial position.

A review may consider:

Whether both loans can be serviced
Expected rental income
Current property equity
Investment-loan structure
Owner-occupied loan structure
Security arrangements
Cash-flow implications
Property-management costs
Landlord insurance
Maintenance and vacancy risk
Future borrowing plans

Tax, legal and investment implications should be discussed with appropriately qualified professionals.

LnL Finance provides mortgage and credit assistance, not taxation, legal, financial-planning or property-investment advice.

Explore Investment Property Finance

What Is Bridging Finance?

Bridging finance is temporary lending that may assist an eligible borrower to purchase another property before the existing property is sold.

Availability, structure and terminology vary between lenders.

A bridging assessment may consider:

The value of the current property
The existing mortgage
The purchase price of the next property
The expected sale proceeds
The proposed sale period
Total temporary debt
Income and expenses
Repayment requirements
Property saleability
Lender policy
The borrower’s ability to manage the arrangement

Peak debt

Peak debt generally refers to the combined lending position before the existing property is sold.

It may include:

Existing home loan
New purchase price
Purchase costs
Relevant lender fees
Other approved amounts

End debt

End debt generally refers to the expected lending position after the existing property is sold and the agreed amount of sale proceeds is applied.

The actual end debt can differ if:

The property sells for less than expected
Selling costs are higher than estimated
Settlement is delayed
Additional funds are required
The lender applies different assumptions

Bridging finance is not available or suitable in every situation. Approval is subject to the lender’s requirements and individual circumstances.

Linking Sale and Purchase Settlements

A simultaneous or coordinated settlement may reduce the period between selling and buying, but timing must be managed carefully.

Relevant parties may include:

Selling agent
Buyer’s agent, if used
Conveyancer or settlement agent
Existing lender
New lender
Mortgage broker
Property buyer
Property seller

Potential problems include:

The buyer of your current property delaying settlement
The new lender not being ready
Outstanding mortgage discharge requirements
Contract dates that do not align
Deposit funds not being available when required
Removalists and possession arrangements
Delays in property documents

Obtain legal and settlement advice before agreeing to interconnected sale and purchase dates.

LnL Finance can assist with the mortgage and lender process but cannot give legal advice.

Explore Investment Property Finance

How Much Can You Comfortably Borrow?

The lender may calculate a maximum borrowing amount, but that amount may not be the level of debt you feel comfortable managing.

Consider:

New mortgage repayments
Potential interest-rate increases
Council and water rates
Building insurance
Strata fees, where applicable
Maintenance
Renovations or furnishing costs
Schooling or childcare costs
Transport
Lifestyle expenses
Future career or family changes
Emergency savings
The financial impact of a delayed sale

Where the next property has a higher purchase price, the increase in ongoing costs may extend beyond the mortgage payment.

Learn About Home Loan Pre-approval

Costs Involved in Selling and Buying

Moving from one property to another may involve two sets of transaction-related costs.

Potential selling costs

These may include:

Real-estate agent commission
Advertising and marketing
Property preparation
Repairs or maintenance
Conveyancing or settlement-agent fees
Mortgage discharge fees
Settlement adjustments
Removal and storage expenses

Potential purchase costs

These may include:

Deposit
Transfer duty
Conveyancing or settlement-agent fees
Building and pest inspections
Loan fees
Valuation fees
Mortgage registration
Lender’s mortgage insurance
Moving costs
Insurance
Repairs, renovations or furnishings

Actual costs depend on the properties, transaction, lender and individual circumstances.

Our Home Upgrade Finance Process

1. Discuss your plans

We begin by discussing:

Your current property
Existing mortgage
Preferred next property
Expected price range
Whether you plan to sell or buy first
Whether the current property may be retained
Available savings
Proposed timing
Longer-term goals

2. Estimate the current position

We review available information about:

Current loan balance
Estimated property value
Potential equity
Selling costs
Available savings
Other debts
Income and expenses

Initial calculations are estimates until valuations, contracts and lender assessments are completed.

3. Review potential pathways

Depending on your circumstances, potential approaches may include:

Selling before buying
Coordinating sale and purchase settlements
Buying subject to sale
Bridging finance
Temporary funding using available equity
Retaining the current property
Another suitable lending structure

Not every pathway is available through every lender.

4. Compare suitable lender options

We consider suitable options available through our accredited lender panel.

The comparison may include:

Borrowing capacity
Interest and comparison rates
Fees
Bridging policies
Equity-release requirements
Valuation requirements
Loan features
Repayment arrangements
Expected processing requirements

Not every Australian lender or product is included in our panel.

5. Explain the proposed lending

We explain:

Indicative loan amounts
Temporary and ongoing debt
Estimated repayments
Fees
Required documents
Valuation assumptions
Conditions and limitations
Relevant risks

6. Prepare the application

If you choose to proceed, we assist with preparing and submitting the application and supporting documents.

7. Coordinate with relevant parties

We communicate with the lender and work with your authorised settlement representatives where appropriate.

8. Support the process through settlement

We help monitor lending requirements and keep you informed as the transaction progresses.

9. Review the new home loan

After settlement, LnL Finance regularly reviews existing clients’ interest rates and approaches lenders directly where appropriate.

Learn About Regular Interest Rate Reviews

When Upsizing May Need More Preparation

Additional preparation may be required where:

The current property has not been appraised
The expected sale price is uncertain
There is limited equity
Two loans cannot be serviced temporarily
Existing credit limits reduce borrowing capacity
The next property requires major renovations
Employment or income is changing
The existing property may be retained
Purchase and sale settlements do not align
The deposit depends on unsettled sale proceeds
A fixed home loan may involve break costs

Identifying these issues early can provide more time to consider available options.

Why Choose LnL Finance?

Finance reviewed across both properties

We consider the existing mortgage, current property, proposed purchase and expected future lending position.

Multiple pathways considered

Depending on the circumstances, we can discuss the lending implications of selling first, buying first or retaining the existing property.

Clear explanations

We explain proposed loan amounts, repayment arrangements, assumptions, fees and relevant risks in plain English.

Support through the transition

We communicate with the lender and help coordinate mortgage requirements through the purchase and settlement process.

Ongoing rate reviews

After settlement, we regularly review existing clients’ home-loan rates and contact lenders directly where appropriate.

Local Perth assistance

LnL Finance is based in Joondalup and supports homeowners across Perth, Greater Perth and Western Australia.

Frequently Asked Questions

The appropriate order depends on your circumstances, borrowing capacity, available equity, local property market, timing and tolerance for temporary debt. Each approach has advantages and risks.
Potentially, subject to borrowing capacity, available equity, lender policy and the proposed transaction. Temporary or bridging finance may be considered in some circumstances.
Bridging finance is temporary lending that may help an eligible borrower purchase another property before the existing property is sold. Availability and structure vary between lenders.
Peak debt generally refers to the temporary combined borrowing before the existing property is sold. End debt generally refers to the expected borrowing after agreed sale proceeds are applied.
Potentially. The usable equity depends on the property valuation, existing loan, proposed loan-to-value ratio, borrowing capacity, loan purpose and lender requirements.
Potentially, but the lender must assess whether you can service both lending arrangements. Tax, legal, cash-flow and investment considerations should also be reviewed with appropriately qualified professionals.
A lower sale price may reduce the available deposit or increase the remaining debt. The finance arrangement may need reassessment.
It may be possible to coordinate settlements, but delays in one transaction can affect the other. Obtain advice from a conveyancer or settlement agent about contractual and settlement risks.
Pre-approval may help clarify the potential lending position before an offer is made, but it remains conditional and does not guarantee final approval.
No. A new application or variation may be required, and approval is subject to the lender’s current policy and your circumstances.
No. We compare suitable options available through our accredited lender panel. Not every Australian lender or product is included.
No. Approval is subject to lender criteria, valuation, property acceptability, verification of information and individual circumstances.

Planning Your Next Property Move?

Speak with LnL Finance before committing to the sale or purchase timing.

We will review your existing mortgage, potential equity, borrowing position and expected next-home purchase so you can better understand the available finance pathways.