Usable equity
Equity is not always fully usable. Lenders still assess property value, loan balance, LVR, income, debts, repayments and the final position.
Buying another home
Buying your next home
Moving, upgrading or downsizing? Before you list or make an offer, check how usable equity, borrowing power, sale timing and your current loan fit together.
- Sell first or buy first
- Use equity
- Plan buying and selling costs
What are you trying to work out?
Choose the situation closest to you. We will show what to check first, which tools may help and where Emoney can step in.
Selected: Not sure yet
Not sure yet
You do not need to decide everything straight away. A useful first step is checking your current loan, usable equity, borrowing power and likely buying costs.
May suitYou are comparing options before listing, offering or choosing a timing path.
WatchRelying on rough estimates before checking current loan, timing and costs.
Check first
- Current home value and loan balance
- Borrowing range for the next purchase
- Deposit or usable equity position
- Buying and selling costs
- Whether selling, buying or bridging should be checked first
Emoney can point the enquiry to the relevant calculator, checklist or broker conversation.
Selected: Not sure yet
Not sure yet
You do not need to decide everything straight away. A useful first step is checking your current loan, usable equity, borrowing power and likely buying costs.
May suitYou are comparing options before listing, offering or choosing a timing path.
WatchRelying on rough estimates before checking current loan, timing and costs.
Check first
- Current home value and loan balance
- Borrowing range for the next purchase
- Deposit or usable equity position
- Buying and selling costs
- Whether selling, buying or bridging should be checked first
Emoney can point the enquiry to the relevant calculator, checklist or broker conversation.
Before you move, check these five things.
A next purchase is not just a new borrowing question. It is an equity, timing, cash and current-loan question. Emoney can help connect those pieces before you rely on one number.
Borrowing range
Your next budget depends on income, existing debts, current loan commitments, expected sale proceeds and the new repayment.
Settlement timing
The dates matter. Sale settlement, purchase settlement, deposit due date and moving timeline all need to line up.
Buying and selling costs
Budget for stamp duty, agent fees, conveyancing, inspections, moving costs, loan fees and possible LMI.
Current loan position
Your current loan may need to be discharged, refinanced, restructured, varied or reviewed before you buy again.
Settlement timing can make or break the move.
If your current home settles before the next purchase, you may have clearer sale proceeds but may need temporary accommodation. If the new purchase settles first, you may need to cover the gap with savings, equity or bridging finance.
Emoney can help check the lending side of the timing problem. Your conveyancer should also confirm the contract, deposit release and settlement details.
Timing checks before you commit
Sale settlement vs purchase settlement
Check whether your current home settles before, after, or on the same day as your next purchase.
Same-day settlement
A simultaneous settlement can work, but it depends on banks, conveyancers, buyers, sellers and funds being ready on time.
Longer settlement or temporary accommodation
A longer settlement can reduce pressure. If the dates do not line up, you may need somewhere to stay between homes.
Deposit release
If you need sale funds for the next purchase deposit, check when those funds are actually available. Contract timing matters.
Sale proceeds arriving late
If your purchase deposit is due before your sale proceeds arrive, you may need savings, equity, deposit release or another short-term option.
Sale settles first
Clearer sale proceeds, but you may need temporary accommodation.
Purchase settles first
You may need to cover the gap with savings, equity or bridging finance.
Same-day settlement
Convenient, but more dependent on every party being ready.
Deposit timing
Check when the purchase deposit is due and where the funds come from.
Buying before selling? Check the bridge carefully.
Bridging finance can help when you buy before your current home sells, but it is not automatic. A lender may look at peak debt, expected end debt, the bridging period, likely sale price, income, equity and your exit plan.
Emoney can help compare lender policy and check whether buying first is realistic before you rely on bridging finance.
Ask about buying firstKeeping your current home?
If you keep your current home, a lender may assess the application differently. They may consider expected rental income, existing repayments, the current loan structure and your total debt position. A tax adviser can help with tax treatment and ownership questions.
Expected rental incomeWhether a lender may include some rental income.
Existing repaymentsHow both loans affect your total debt position.
Investment loan setupWhether your current loan changes to investment lending.
Insurance and taxWhat to check with your insurer and tax adviser.
Borrowing power impactHow keeping the home may affect the next purchase.
What happens to your current loan?
Before assuming the old loan can simply move, get clear on the lender, security, fees, loan features and documents. This is where an experienced broker can save time by checking policy early.
Discharge the loanCommon when the property is sold and the loan is paid out at settlement.
Refinance or restructureMay be considered if the current loan no longer suits the next move.
Top up or access equityMay help with deposit or costs, depending on lender assessment.
Portability or security substitutionSome loans may allow this, but it depends on the lender, loan and property details.
Fixed, split or variable implicationsFixed loans may involve break costs. Split loans may need separate treatment.
Offset or redraw accessAvailable funds may help with deposit or settlement, but access should be checked carefully.
Run the numbers before you decide.
Use these to get a rough starting point before a broker conversation. Calculator results are estimates only, not approval or a loan recommendation.
EquityStart with a rough view of property value, loan balance and possible usable equity.Open toolBorrowing powerEstimate a starting point before a broker reviews income, debts and lender policy.Open toolUpfront buying costsPlan for the cash needed around deposit, duty, legal costs, lender fees and settlement.Open toolRepaymentsCompare repayments for the next loan amount, rate assumptions and repayment type.Open toolStamp dutyEstimate state-based transfer duty before you decide what budget feels realistic.Open tool
Common traps to avoid.
Moving again can feel familiar, but the current home changes the risk. These are the assumptions Emoney would rather check before you list, offer or rely on a calculator result.
Do not assume your full equity is usable.
Do not make an offer before checking timing, deposit and settlement.
Do not forget selling costs, agent fees, discharge fees and moving costs.
Do not assume bridging finance is automatically available.
Do not treat calculator results as approval.
Do not ignore fixed-rate break costs or discharge steps.
Do not keep your current home without checking rental income, repayments and tax implications.
Loan features you may hear about.
The old loan and the next loan may use different features. Emoney can help compare options and explain the trade-offs, but this page will not pretend one feature suits everyone.
Fixed vs variable loansUnderstand how fixed and variable rates can affect flexibility, certainty and review timing.Read moreOffset accountsAn offset account may reduce interest while keeping savings accessible, depending on the loan setup.Read moreOffset vs redrawBoth can involve extra money around the loan, but access, tax and lender rules can differ.Read moreExtra repaymentsExtra repayments may reduce interest over time, but fixed loans can have limits.Read moreSplit loansA split loan divides borrowing between fixed and variable portions.Read moreBridging financeUseful to understand if purchase and sale timing overlap, but it needs lender review.Read more
Common questions
Questions movers ask before they call.
Should I sell my current home before buying another one?
Selling first can make your deposit and budget clearer, but it may mean renting, staying with family, or negotiating a longer settlement while you search.
Can I buy another home before selling my current one?
Sometimes. A broker can help check equity, income, debts, sale timing and whether the lender would assess a temporary two-property position.
What is bridging finance?
Bridging finance is a short-term structure that may help cover the gap between buying the next property and selling the current one. It needs careful review.
Can I use equity to buy my next home?
Equity may help with the next deposit or costs, but lenders still assess income, repayments, property values, loan-to-value ratio and the final loan position.
What costs should I budget for when buying again?
Allow for deposit, stamp duty, agent fees, conveyancing, inspections, lender fees, discharge costs, moving costs and possible LMI or bridging costs.
Can I keep my current home as an investment?
Possibly, but it changes the loan conversation. Rental income, repayments, equity, tax advice, insurance and lender servicing all need to be checked.
Should I get pre-approval before making an offer?
It can help clarify your borrowing range before you offer, especially if the purchase depends on selling, bridging, using equity or keeping the current home.
Ready to move from reading to review?
Before you list or make an offer, check the numbers.
A broker can help look at your current loan, equity, sale timing, deposit, borrowing power and whether selling first or buying first is realistic for your situation. General information only, no credit decision online.