Upgrading in North Bondi: Keeping Your Existing Property

If you are planning to buy a home in North Bondi while keeping your current property, prepare the proposal as two linked household commitments. Explain how the next purchase would be funded, what will happen to the existing property and how you expect to manage both sets of costs.

Brampton Finance helps borrowers compare suitable loan options and organise their applications. This guide focuses on preparing a keep-and-buy proposal rather than assuming that retaining a property is the right choice for every household.

Describe the intended use of both properties

Set out which property will be your home, whether the existing property will be rented and when any move is expected. Provide ownership details, current loan statements and the proposed purchase budget.

Discuss suitable home loans for the next home and investment lending for the property you intend to rent. Explain the complete plan before requesting changes to either loan.

Identify the deposit and purchase costs

List cash already available and any additional borrowing you want assessed against the existing property. Keep the current loan balance, proposed increase and funding for the new purchase clearly identified.

Do not assume an online value estimate or apparent equity makes funds available. Ask your broker what valuation, income assessment, documents and approvals would be needed for the actual proposal. Include transaction costs and the cash buffer you intend to retain.

Prepare the rental information and expenses

Obtain available rental evidence for the property you plan to keep and identify whether it is already leased or will be offered for rent after you move. Ask the proposed lender what rental evidence it requires and how it would assess that income.

Budget for management fees, rates, insurance, maintenance, any strata levies and periods without rent. Explain upcoming repairs or works separately so the household plan does not depend on an uninterrupted stream of rent with no expenses.

Review the household position with both properties

Prepare current income, living expenses and all credit commitments. Show the repayments and ownership costs you expect to carry after the purchase, including the period between moving out and receiving rent.

Use the Bellevue Hill household budget guide to explain foreseeable changes to work or family expenses. If the plan involves several loans, the Point Piper loan and security checklist helps organise the current position.

Get advice before changing the borrowing arrangements

Ask your accountant or tax adviser about the proposed use of funds and the records to retain before changing loan accounts or combining borrowings. Ask your broker to explain the proposed security arrangement and what would be involved in a later sale or refinance.

Compare the keep-and-buy proposal with a sale-first alternative using realistic costs and your preferred level of debt. An expected future capital gain should not substitute for a workable repayment and cash-flow plan.

For the sale alternative, read the South Coogee buying-before-selling checklist. Prepare the records in our application document checklist and review any pre-approval conditions; conditional pre-approval does not guarantee final approval.

Explore the Eastern Suburbs finance guides or discuss your North Bondi upgrade on 02 9389 1077. We act as your broker; the selected lender makes the credit decision. General information only. Finance is subject to assessment and approval.