Thinking about upgrading your home?
If your family has grown and your current home is becoming a bit cramped, or you’d just like a change of scenery, it could be time for an upgrade.
Whatever your reason for upgrading, it’s important to think through the financial aspects. You have probably built up sufficient equity in your home to be able to afford an upgrade but you should also consider how you'll fund the move. We can outline options to release cash from your home for your new house deposit or we can assist with organising a deposit bond.
At Mortgage Choice Melbourne, our brokers can help you through this process, just make time for a chat and we’ll take the stress away from you so you can concentrate on looking for a new home!
Options for upgrading
There are a few options that could suit your financial scenario:
Refinancing
The process of upgrading can be an opportunity to review your existing home loan interest rate and product features. Often upgrading your home can lead to an increase in your loan balance so you could have lenders willing to offer you a greater discount. Either way refinancing involves taking out a new loan to pay off your current mortgage so our brokers will clearly explain any associated costs vs benefits with the process.
Loan portability
Alternatively, your existing home loan may offer a feature known as 'portability'. This means you can take the same loan with you when you move from one property to another. In the event you currently have a Fixed Rate home loan this is important as you may be able to avoid paying a ‘Break Fee’. Overall if you’re happy with your current loan this option can provide savings on the costs that may apply to refinancing. It can also be very convenient as you're dealing with the same lender and you retain the same account number, meaning no need to change your direct debits.
Bridging
You may have found your next ‘dream home’ but have not spoken to a Real Estate Agent to sell your existing home. Our brokers have a selection of lenders that will assist with a Bridging Loan to allow you enough time to sell your existing home, whilst having the confidence to purchase your new home. Our brokers will outline the key metrics our lenders consider for such a loan facility.
How our broker can help you
The key thing is to speak with one of our Mortgage Choice Melbourne brokers to talk through the available options for funding your upgrade. This will let you know just how you stand in terms of borrowing options, leaving you free to focus on selling your current home and choosing your next property. We also have trusted contacts in the property industry that we are more than happy to introduce you to.
Book a 10 minute phone meeting with a consultant of your choice at a time that suits you or call our Mortgage Choice Melbourne office on 03 8602 6777!
Guide to upgrading your home
Download our Guide to upgrading your home to explore the pros and cons of upgrading.
