Downsizing Home Loan Wollongong

Not always. If your new home costs less than the sale price of your current one, you may not need finance at all. Many downsizers, though, still want a smaller loan to bridge timing, fund renovations on the new place, or avoid tying up all their cash in property.

Others buy the new home before selling the old one, where a bridging loan covers the gap until settlement. We will look at your situation and tell you whether a loan is needed and, if so, how small it can be.

It can be more complex but is often possible. Lenders must be satisfied you can repay the loan, and for older borrowers they look closely at your exit strategy, which may be superannuation, the sale of another asset, or ongoing income.

Some lenders are more comfortable with retiree lending than others, and the loan is often structured over a shorter term or a smaller amount. We match you to a lender whose policy suits your circumstances.

Downsizing can free up equity, reduce ongoing costs and simplify maintenance, but there are moving parts worth planning for, including selling costs, stamp duty on the new purchase, and any impact on pension or superannuation arrangements.

We focus on the finance side and work in with your accountant or financial adviser on the broader picture so the numbers all line up.

If the right property comes up before yours has sold, a bridging loan lets you secure it and sell afterwards. This avoids missing out in a tight market, with the trade off that interest capitalises until your existing home settles.

If you would rather avoid that risk, selling first and renting briefly is the more conservative route. We will compare both so you can choose with clear numbers in front of you.