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Forum Mortgage & Finance

Buying new house before selling old house?

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anon6868 | 09 Jun 2020, 04:03 PM Agree 0
I currently have a loan for $300,000 left on it. We want to buy a new house now which is sale for $750,000, but will take a month at least to sell our current house which our valuation is currently $550,000.

How can we secure the new house now while we sell our old house?

I don't want to go down the road of 'bridging loans' or taking out 2 mortgages so wondering if anyone knows any other options that could be available within Australia?

We wouldn't quality for the 2 loans anyway, as the loans will only be in my name (partner bad/no credit so won't be included in any applications)
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  • Property88 | 09 Jun 2020, 04:56 PM Agree 0
    A bridging loan is your only option. Not sure what magic solution you are looking for as what you are proposing is quite risky? Your house may not sell quickly especially in this market, which means you'll end up paying two mortgages - very stressful.

    Banks and lenders view applicants based on risk: if you are only putting your name on the application and you want to buy a house for $750k, then the bank is taking on quite a big risk in assuming you can repay that by yourself.

    I would recommend you sell your current home before you start shopping for a new one, to avoid a world of stress.
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