Usable equity
Start with a lender-supported valuation, subtract the existing mortgage and allow for the lender’s maximum loan-to-value ratio. Available equity can be lower than the simple market value less debt calculation.
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Next home buyers · Victoria
A clearer finance plan for your next home
Moving from one home to the next creates more moving parts than your first purchase. Chris Berry helps Victorian home owners estimate usable equity, compare suitable loans from more than 40 lenders and coordinate the finance around their sale and purchase.
Next-home planning across Victoria
The short answer
What does a next-home-buyer mortgage broker help with?
A mortgage broker can model how much of your current property's equity may be available, estimate the debt left after your sale, compare buy-first and sell-first pathways, and arrange a suitable ongoing or bridging loan. The aim is to know your realistic purchase range before you commit.
Build the plan first
Know the three numbers that shape your move
Your target purchase price is only one part of the plan. A useful upgrader assessment also tests the equity you can access, the temporary peak debt and the loan you expect to keep after selling.
- A conservative estimate of sale proceeds after the mortgage and selling costs
- Your borrowing capacity and likely loan after the current home is sold
- Purchase costs, including Victorian land transfer duty and registration fees
- Timing risks between contracts, finance approval and both settlements
Net sale proceeds
Model a realistic sale price, then allow for the mortgage payout, agent fees, marketing, conveyancing and other selling costs.
Peak debt
If you buy before selling, peak debt can include the current mortgage, the new purchase and eligible buying costs until the sale settles.
End debt
Estimate the ongoing home loan after your sale proceeds reduce the temporary debt. This is the repayment that needs to fit your longer-term budget.
Compare the pathways
Buy first or sell first?
Neither sequence is automatically better. The right option depends on serviceability, equity, the properties involved and how much timing and price risk you are comfortable carrying.
Decision point
Sell before buying
Buy before selling
Purchase budget
Sale proceeds are clearer before you commit.
The budget relies on conservative valuation and sale assumptions.
Timing
May require temporary accommodation or a negotiated settlement.
Can reduce the pressure to find a home immediately after selling.
Finance
Usually an ongoing home loan once the sale has settled.
May involve bridging finance, equity release or servicing both loans.
Main risk
Prices may change while you search for the next property.
The current property may sell later or for less than assumed.
How it works
From rough idea to finance-ready plan.
- 01
Map your current mortgage, income, property value and likely selling costs.
- 02
Compare sell-first, simultaneous-settlement and buy-first funding pathways.
- 03
Seek pre-approval and coordinate finance milestones with your conveyancer and agents.
Common questions
Clear answers for Victorian home movers
How much equity can I use to buy my next home?
Usable equity depends on the lender’s valuation, your mortgage balance, the proposed loan-to-value ratio and lending criteria. It is not always the full difference between your estimated sale price and current loan.
Can I make an offer before selling my current home?
Potentially. Options may include bridging finance, servicing both properties, negotiating a subject-to-sale condition or coordinating longer and shorter settlements. Finance approval and legal advice should be obtained before signing.
Do I need another deposit if I already own a home?
You still need to fund the purchase deposit and settlement costs. Depending on your circumstances, the source could be savings, accessible equity, sale proceeds or an approved short-term arrangement.
Can I keep my existing home and turn it into an investment property?
It may be possible if your borrowing capacity, equity and cash flow support both properties. Loan purpose and structure should be considered carefully, and tax advice should come from a qualified tax professional.
When should I speak to a mortgage broker?
Ideally before listing your current property or making offers. Early modelling gives you time to check valuations, borrowing capacity, loan structure and the settlement sequence.
Reviewed 13 September 2026 by Chris Berry. General information only; lending criteria and costs vary. Your conveyancer or legal practitioner should advise on contracts and settlement conditions.
Victoria-specific reference: Consumer Affairs Victoria buying and selling property guidance .
Ready when you are
Let’s find your better rate.
Book a free 30-minute appointment with a mortgage broker to clarify your next step.