Next-home buyers
Buying first can be practical, but it requires a conservative plan for two properties and changing settlement dates.
A bridging loan can cover the period between buying your new home and selling your existing property. The lender considers the combined debt, your projected sale proceeds, property values and your ability to manage the arrangement. Products, maximum terms and repayment treatment vary between lenders.
At the highest point you may have your existing mortgage, the new purchase debt and purchasing costs. Lenders assess whether the peak debt is acceptable and what the end debt should be once the current property sells. Do not base the plan on an optimistic sale price alone.
Ask your agent for a realistic selling strategy, allow for delays and understand both contracts before signing. A longer settlement can help align dates, while a finance clause may provide protection in a private treaty purchase. Get legal advice on the contracts and their conditions.
Consider how you would respond if your existing home took longer to sell or sold for less than expected. A lower reserve, additional savings or an alternative settlement arrangement may be necessary. The right strategy depends on your risk tolerance and cash flow.