You might be one of countless other homeowners who has bought a new house before selling their old property. We take a look at some things you might also consider.

28 October 2020

The average house sale in Australia takes months to complete. It’s a long and often complicated process with many traps for the inexperienced. If you’re trying to sell your current home and buy a new one to move into, it can be all consuming trying to get things timed just right. Sometimes you might find the perfect new home but not have buyers for your house in place. So what can you do if you’re buying a house before selling the old property?


First up, if you’ve had an offer accepted on a new home, congratulations! If you haven’t sold your current home yet, don’t panic,

We’re here to help if you haven’t. Take a look at our website to see why you should choose us to sell your home.

If you’re in the process of selling or at least have your current home up for sale already, here’s what you can do.


Should it be the case that you don’t have any savings to cover the deposit of your new purchase you’ll need to find the money from somewhere.

Friends and family with money to spare are often happy to help. However, things can go be awkward and go downhill very quickly, so make sure you put any agreement in writing.

No home is worth damaging a family relationship, so be sure both parties are 100% happy and that terms are set and adhered to.


Bridging loans are short term loans which “bridge the gap” between sale and purchase. The term is usually from a few weeks or sometimes to a few months long.

These types of loans are generally secured with your current home loan can often be expensive however they may work really well if you are comfortable with a short timeframe.

Whilst perfectly legal, there are risks involved. For example, if your home takes longer to sell than expected, or the sale falls through, you still need to pay off the bridging loan within the specified time frame.

Qualifying for a bridging loan can also be tricky. They carry a significant financial burden, so you must be able to prove you can make repayments. Lenders also like to see a higher credit rating than usual.


You may be able to borrow money from your pension. The older you are, the riskier this strategy could be.

Think carefully before making this choice and discuss it with a financial advisor.


If you have a good amount of equity in with your current mortgage, and a high credit score, you could use that money to pay for the deposit on your new home.

This is a good option but not something to consider last minute. It can take 30 days or more for an appraisal, income verification and credit check to be completed.

Also, be careful you’re not taking too much out of your original mortgage and it impacts the mortgage of your future purchase.


There are two options available that include renting. The first is if the sellers of the property you are trying to purchase has not found a new home yet. The sellers would stay in their home, whilst they find a new property and rent it from you.

It also means you stay in your current home and continue to find a buyer, with the knowledge that you’re onward purchase is complete.

Of course, you do run the risk of finding a buyer before the sellers of your new home find a new property for themselves.

The other option, if the sellers of your new property are ready to move out, is to rent your current home.

If you’re able to pay the deposit on your new property, this is a great way to avoid the cost of paying both mortgages. You may need to update or change the mortgage agreement with your lender though.

Make sure you check for any other rules or regulations you need to abide by as a landlord. You might find that you like it and decide not to sell your old home after all!

As well as selling properties, we offer property management for landlords too. Our approach gives you peace of mind, with quality tenants, consistent rent, and fewer vacancy periods.

buying a house before selling

Now you have all the options open to you when you’re buying a house before selling, it’s up to you to take the next step.

We have all the latest real estate news on our website, so make sure you take a look to stay up to date.

If you’re ready for a new property, check out our available listings and get in touch if we can help with your sale or purchase.