Upgrader and/or First Time Investors
Depending on your maximum borrowing capacity, you may have to sell your current home to purchase your next home. If you have more than 50% equity in your existing property, a Bridging Loan could be a good option for you as it allows you more time to sell your existing property so that you can avoid the stress of matching up settlement dates. If you have existing debt, you may need to refinance this to the new lender. Additionally some lenders may need to see the signed Form 6 as evidence that your existing property is already on the market.
In the case that you can keep your existing property and turn into an investment property, you may need to get a valuation on your existing property to see how much it worth is in the lenders eye. You may also need to get a rental appraisal from your local real estate agent to give you an indication of how much the expected rental income.