Hatch Financial Services

Buying your next home

You have bought a property before, so it should be easy second time around. Right? And yet it doesn’t feel like that is the case. Why is that?
Firstly, the size of the transaction is big and the consequences if you get it wrong are huge, both financially and emotionally, and this creates anxiety and stress.
Then there is the fact that selling your existing home and buying a new home, introduces new considerations that did not exist when you were just buying your first home. Like will a bank let me buy before I sell? What is bridging finance? How does it work? Will I need it?
Also buying and selling at the same time is really 2 major transactions – not one – and that is a lot to manage (especially on top of work, family, life etc.)
To get you headed in the right direct, have a think about the order you might want to do things…
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Pros and Cons of Selling First vs. Buying First

Selling before you buy provides certainty around how much you have to put towards the new home.
But it might mean needing to rent or move somewhere else if you don’t find the new home in a timely manner.
If instead you buy first that comes with more risk as you may not get as much for your current home as you expected meaning you need a bigger loan…that is, if a lender will give you a bigger loan.
The upside is that you get to move straight from one home to the other and you don’t need to sell until you have found you next home (very helpful where it might be harder to find your next home than sell your existing one)
Either way do you hope to settle on the purchase and move into the new home before settling on the sale?
Hatch Financial Services will take you through the options as you set out to make the move.
Our team can explain the routes available to you as you plan your journey to the “other side” of selling and moving to a new home.
And we will answer your questions and help you to make informed decisions so that moving to your next home is a success.
Get in touch to discuss your options.
Call Us (1300 442 824)

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Home loans for Next Home Buyers

While people typically are focused on what the new home might look like and what it will cost them, an equally major decision for next home buyers is going to be in what order sell your current place and buy the next place.
The type of loan you need will differ on how you plan to proceed.
Is it just a typical home loan or do you need bridging finance? How easy is it to get a bridging loan?  Do all lenders offer them? If you do go down this path, what is the trade off?
Just briefly, only a small number of lenders offer bridging finance and there are tight restrictions on how long you can bridge for. Also, lenders will typically lend you less than if no bridging finance was involved, and the rates on the bridging debt may be higher than for a regular loan.
A chat with Hatch Financial Services early on will help you to determine if a bridging loan would be available in your circumstances and what the bank requirements will be to get the finance.
Once you know this you can then plan accordingly and get on with finding your next home.
Get in touch to discuss your options.
Call Us (1300 442 824)

Maximising Your Sale Price

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Loan Options for Your Needs

Finding the right home loan is crucial when upsizing or even just next sizing.
We collaborate with over 25 lenders, providing a diverse range of options tailored to your specific needs.
Our independent mortgage brokers will help you compare interest rates, loan features, and repayment structures to find the perfect loan for your situation.
Get in touch to discuss your options.
Call Us (1300 442 824)

Selecting a Real Estate Agent

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FAQs

What are the risks and impacts of making mistakes in the home buying process?
Mistakes in the home buying process can lead to substantial financial loss and emotional distress. These errors can affect your long-term financial stability and overall well-being.
How does selling and buying a home simultaneously introduce new considerations?
Selling and buying simultaneously introduces complexities like timing the market, coordinating the transactions, and potentially arranging interim financing. It’s a balancing act between two major financial and logistical processes.
Can I purchase a new home before selling my current one, and how does bridging finance work?
Yes, it’s possible to buy a new home before selling your current one using bridging finance. Bridging finance is a short-term loan that helps cover the cost of the new home until you sell your old one. This loan is usually secured against your existing property. But bridging finance is not always available. It will depend on your total circumstances, so it is important to talk to a broker first.
What are the challenges of managing both a home purchase and a sale at the same time?
Managing both transactions involves coordinating the timing, and handling the stress and workload of both processes while maintaining your daily responsibilities.
What should I consider when deciding the order of selling and buying homes?
Consider market conditions, your financial stability, the urgency of moving, potential for temporary housing, and the impact on your daily life. Each option has its pros and cons, depending on your unique situation.
What different loan options are available for next home buyers?
Next home buyers can choose from standard home loans to more specialised options like bridging finance. The choice depends on your financial situation and the sequence of selling and buying your homes.
How do I know if I’m eligible for a bridging loan, and what are the requirements?
Eligibility for a bridging loan depends on several factors, including your financial health, the equity in your current home, and your ability to repay the loan. Lenders have specific requirements and restrictions for these loans.
How can I compare and choose the right home loan for my situation?
Compare loans based on interest rates, features, and repayment structures. Consider your financial circumstances and future plans. Consulting with a mortgage broker, like those at Hatch Financial Services, can provide personalised advice and options.

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