Upsizing your family home
Upsize with confidence
Before you decide to upgrade to a bigger home there are few things you should consider.
Can you afford it?
It’s important to know what you can afford to spend in monthly mortgage repayments. Do you need to consider moving to a different, more affordable area? And it’s not just the suburb you buy in. Check the condition of the bigger homes in your price range. Will you need to factor in renovation costs down the track?
Applying for a new home loan
When you arrange a larger mortgage your borrowing capacity and risk to the lender will need to be re-assessed. If you’re applying for a bigger home loan your history of paying off your debts and your current financial position is really important. You should have a clear budget and understand your obligations to your lender.
On top of the larger mortgage costs, you might want to think about the the out-of-pocket responsibilities of owning a larger home. You are probably going to pay more in bills and council rates as well as and have more maintenance to attend to - especially if you’re moving to have a backyard.
There are some things to think about before you sell up and start the search for your new home, so it’s important to speak to an expert like Lyndal. Things to be considered are, should I buy or sell first? Do I need access to bridging finance for a short period?
And then there are the costs of moving - a removalist, connecting utilities, insurances and new furniture to fill your larger home are all key considerations.
The most important thing to be sure of is that you’re not over-stretching yourself and that you can meet the higher mortgage repayments over the long term, as well as factor in eventual interest rate rises. Lyndal can help you assess your situation to make sure you’re ready to upsize so that you can go into your new home with confidence.