Are your kids tired of sharing a bedroom? Feeling cramped when the in laws come to stay? Struggling to find new space-saving ways to store all of your belongings?
If you've outgrown your current home or are ready to expand your family, it could be time to consider upsizing. As an upsizer, you’re likely moving into a new life stage and need a bigger property to match your needs.
While upsizing comes with a tonne of benefits, it’s important to understand how the process works and what it takes to secure an upsizer home loan. Not sure where to start? Keep reading to discover everything you need to know about upsizing as a homeowner.
As the name suggests, upsizing is when a homeowner moves into a larger property that is a better fit for them and their lifestyle. To make this happen, you’ll need to sell your current property and purchase a new, larger home (although, it doesn’t necessarily have to happen in that order).
In most cases, homeowners are driven by lifestyle factors when deciding whether or not to upsize. That’s because your home should help you live the life you want, rather than make it difficult to entertain, grow your family or have your relatives visit.
Broadly speaking, here are some of the common reasons homeowners choose to upsize their property:
Once you’ve figured out if upsizing is right for you, it’s time to start your property search. Make sure to keep in mind:
Now onto the part you’ve been waiting for: what is involved in upsizing as a homeowner?
Broadly speaking, you have two options when it comes to upsizing:
In either case, you’re going to need some capital to make this purchase or renovation happen. With a property already under your belt as a homeowner, you don’t need to start from scratch to save up a massive amount of money. Instead, you can access the equity in your existing home to fund your upsizing move.
This equity (a.k.a. The difference between how much your property is worth and how much you still have remaining on your loan) can be used as a deposit to get you into your new home sooner.
Rather than waiting months or years to save up for a down payment, you can use this equity as a way to refinance your existing home loan and access a larger loan amount.
Alternatively, you can choose to sell your current home first and then purchase your new larger property (although that does come with lots of complexities and costs you need to factor in).
The most common way to upsize is to sell your current home and use the proceeds of that sale to purchase your next property.
Unfortunately, this comes with a range of challenges, including:
With Bridgit’s bridging loan, you can spend more time looking for your dream home and not have to worry about paying two mortgages at once.
We give you the control to buy on your own terms with fast same-day approval, settlement in as little as 48 hours and three months interest-free.
Ready to secure your dream home as an upsizer? Apply for a Bridgit bridging loan and secure approval today.
When negotiations for a same-day settlement fell through, this homeowner’s broker reached out to Bridgit in need of urgent bridging finance.
Bridgit has been named a finalist in the Best Lending Innovation category of the Finder Innovation Awards 2023 – the same category it won last year.
Bridgit has won the title of Best Lending Innovation at the Finder Innovation Awards 2023. This comes hot on the heels of news that Bridgit was a finalist in Finder’s annual awards program, which recognises Australia's most forward-thinking businesses.