First Home Buyers
What Are Your Options When Buying Your Next Home?
Use the Equity in Your Current Home
Use the Equity in Your Current Home
Use the Equity in Your Current Home
Your existing property could be the key to funding your next one.
Equity is the difference between your property’s market value and your remaining loan balance. You may be able to unlock this equity to cover the deposit and costs for your next purchase—without needing to sell first.
We help you:
- Calculate your available equity
- Access competitive home loan products using that equity
- Structure your loan for flexibility and tax efficiency
Consider Loan Portability
Use the Equity in Your Current Home
Use the Equity in Your Current Home
Loan portability lets you take your current home loan with you when you buy your next home—potentially saving time, fees, and paperwork.
Benefits include:
- Avoiding break costs on fixed loans
- Keeping your existing loan rate and features
- Smoother transitions between properties
We’ll review your current lender’s portability policies and advise if this is the right move for you.
Explore Bridging Finance
Use the Equity in Your Current Home
Sell Your Current Property or Keep It as an Investment?
If you want to buy before you sell, bridging finance might be an ideal short-term solution.
How it works:
- You secure a loan for the new property while still owning the current one
- Once your current home sells, the loan is adjusted to reflect your final loan amount
We guide you through:
- How much you can borrow during the bridging period
- The pros and cons of this strategy
- Structuring your repayments during the overlap
Sell Your Current Property or Keep It as an Investment?
Sell Your Current Property or Keep It as an Investment?
Sell Your Current Property or Keep It as an Investment?
We help you weigh up whether it’s smarter to sell your current home or convert it into an investment property.
Selling Pros:
- Access funds for a larger deposit
- Simplify your finances
- Avoid holding multiple loans
Keeping It Pros:
- Build your property portfolio
- Earn rental income
- Potential for long-term capital growth
We’ll break down the numbers so you can make an informed choice.
Get Pre-Approved and Know Your Budget
Sell Your Current Property or Keep It as an Investment?
Get Pre-Approved and Know Your Budget
Once we’ve mapped out your strategy, we help you get pre-approved so you can shop with confidence, knowing:
- Your borrowing power
- Your repayments
- Your maximum purchase price
How to Calculate Equity to Buy Your Next Property
If you're thinking about purchasing your next property, one of the most powerful tools you might already have is equity in your current home. Equity can help you upgrade, invest, or even buy your dream holiday home — but first, it’s important to understand what equity is and how to calculate it.
What Is Equity?
Equity is the difference between the current market value of your property and the amount you still owe on your home loan. In simple terms, it’s the portion of your home that you own outright.
How to Calculate Equity
Here’s a quick formula to calculate your home equity:
Equity = Current Property Value – Outstanding Loan Balance
Let’s break that down with an example:
- Your home is currently worth $850,000
- Your remaining loan balance is $450,000
$850,000 – $450,000 = $400,000 equity
This means you have $400,000 in equity.
How to Calculate Equity
Here’s a quick formula to calculate your home equity:
Equity = Current Property Value – Outstanding Loan Balance
Let’s break that down with an example:
- Your home is currently worth $850,000
- Your remaining loan balance is $450,000
$850,000 – $450,000 = $400,000 equity
This means you have $400,000 in equity.
Understanding Usable Equity
While you may have $400,000 in equity, you won’t necessarily be able to use all of it. Lenders typically let you access up to 80% of your property’s value, minus what you still owe. This is to ensure you don’t overextend financially and helps you avoid Lenders Mortgage Insurance (LMI).
Using the same example:
- 80% of $850,000 = $680,000
- $680,000 – $450,000 (existing loan) = $230,000 usable equity
So, in this case, you could potentially access $230,000 to help fund your next purchase.
How Can Equity Help You Buy Another Property?
Usable equity can be used as a deposit for your next home or investment property. Rather than saving up a full deposit from scratch, you could leverage the value of your existing home to move forward sooner.
This strategy is commonly used by homeowners who want to:
- Upgrade to a larger or better-located home
- Start building an investment portfolio
- Purchase a holiday or weekend getaway property
Not Sure What Your Home Is Worth? Let Us Help.
Knowing your property's current value is the first step in understanding how much equity you have available. At The Baron Financials, we have access to CoreLogic Property Reports, the same trusted data used by banks and valuers.
We can provide you with a free, no-obligation estimate of your property’s value, helping you make an informed decision about your next move.
Let’s Unlock Your Equity Potential
Whether you’re upsizing, investing, or planning your next purchase, we’ll help you understand your borrowing power and explore the right loan strategy to match.
What is Bridging Finance? And Is It Right for You?
Bridging finance is a short-term loan that helps you buy your next property before you've sold your current home. It gives you the freedom to secure your dream property without rushing to sell.
At The Baron Financials, we help clients understand when bridging loans make sense, how they work, and how to structure them wisely.
How Does Bridging Finance Work?
Bridging loans “bridge the gap” between the purchase of your new home and the sale of your existing one.
Here's what typically happens:
- You buy your new home using a bridging loan, which temporarily covers the full cost of the new property, plus your existing home loan.
- You then sell your current home.
- Once it's sold, the proceeds are used to pay down the bridging loan, and you continue with a regular home loan on the remaining balance (the “end debt”).
When to Consider Bridging Finance
Bridging loans can be ideal if:
- You've found the perfect property and don’t want to miss out
- You want to avoid renting between homes
- You’re confident your current home will sell soon
- You have sufficient equity in your current home
Key Things to Know
- Loan Terms: Usually 6–12 months, giving you time to sell.
- Repayments: Some lenders offer interest-only payments or let you capitalise interest during the bridging period.
- Valuations: Both properties will usually need to be valued by the lender.
- Exit Strategy: A clear plan to sell your current home is essential.
Bridging vs Buying and Selling Traditionally
Bridging Finance Sell First, Then Buy
Flexibility High buy when ready Limited by sale timing
Time Pressure Reduced May feel rushed to find next home
Financial Risk Higher if sale is delayed Lower
Temporary Accommodation Not needed Possibly required
Expert Tip
Bridging loans can be powerful—but they’re not for everyone. Not every lender offers them, not every borrower qualifies, and not every situation is suited to this type of finance. That’s where we come in.
At The Baron Financials, we assess your full situation:
- How much equity you have
- Your borrowing capacity
- Repayment options during the bridging period
- The best lender match based on your goals
Ready to Explore Bridging Finance?
Let’s work out if it’s the right move for you—and how to make it as smooth and stress-free as possible.
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