Next Home & Upgrader Loans

Yes — and it’s the most common upgrader structure Andy arranges. You don’t ‘withdraw’ equity as cash; instead, the lender lends you a higher percentage (80-90% LVR) on the new property because they hold your existing property’s equity as additional security, or you structure a bridging facility secured against the old home. Either way, you settle the new property, move in, then sell the old one and clear the bridging / top-up loan component. The key is serviceability: lenders must be satisfied you can afford both loans during the 1-4 month overlap. Around 60% of Perth dual-income households can, especially when lenders credit rental income from the old property during that window.

No, but whether you should depends on your equity position, income, and how quickly properties in your suburb typically sell. If you have enough equity (usually $150,000+) and your household income can service both loans for 60-90 days, buying first is almost always less stressful: one move, no rental holding costs, no pressure to accept a low offer on your old place. If your equity’s tight or income serviceability’s marginal, selling first and using a strong pre-approval to compete like a cash buyer is the safer play. Andy runs both scenarios in the first meeting so you can see the real numbers before you decide.

A bridging loan is short-term finance (1-6 months, sometimes 12) that covers the gap between buying your next home and selling the current one. You need one when your equity alone won’t stretch to the new deposit, or when you want to settle the new property but your old home hasn’t sold yet. The bridging loan sits on top of your existing mortgage, secured against your current property, and gets cleared automatically when that property sells. Interest rates are higher (7.5-8.5% typically) but you’re only paying for a short period. Example: bridging $100,000 for 90 days at 8% costs roughly $2,000 in interest — often cheaper than 3 months’ rent plus two moves. Some lenders offer ‘peak debt’ or ‘equity release’ structures that achieve the same result without a separate bridging product; Andy picks the cleanest option for your scenario.

Technically, the same as any home loan: ideally 20% of the new property’s purchase price to avoid lenders mortgage insurance (LMI). But in practice, most upgraders use equity from their existing property as the deposit, so they’re not saving cash from scratch. If you’ve owned your current home for 5+ years in most Perth suburbs, you’ve likely got $150,000-$300,000 equity — enough for a 20% deposit on a $650,000-$850,000 upgrade. If your equity’s less than 20%, you can still proceed with a low-deposit structure (10-15% deposit + LMI, or using a family guarantor), or top up with some saved cash. Andy runs the equity calc in the first meeting so there’s no guessing.

Yes — and around 25% of Andy’s upgrader clients do exactly that. If your current home’s in a high-rent area (Mandurah canals, Secret Harbour, parts of Baldivis) and the rental yield covers or nearly covers the loan, you can convert it to an investment property instead of selling. The new loan on your upgrade is structured as owner-occupier; the old loan gets switched to investment rate and stays in place. Lenders assess whether you can service both loans long-term, crediting 80% of the market rent against the old loan’s repayments. This path works best if you’ve paid down the old loan significantly (so repayments are low) or if you’re happy to negatively gear for a few years while the property appreciates. Tax implications change too — you lose the main residence CGT exemption on the old property from the date you rent it, but gain deductions on interest, depreciation, and expenses. Andy walks through the trade-off; your accountant should confirm it fits your structure.

This is the risk of a buy-first structure, and why Andy always builds in a buffer when calculating how long you can afford to carry both loans. Most Perth metro suburbs with decent presentation see a sale within 60-90 days in normal market conditions; high-demand pockets (Secret Harbour, southern Mandurah, newer Baldivis estates) often sell in 30-45 days. If your property sits longer, you have three options: (1) extend the bridging loan term (most lenders allow 6-12 months total), (2) adjust your asking price or relist with a different agent, or (3) tenant the property short-term and convert it to an investment hold (see above). The cost of holding both loans for an extra 30-60 days is usually $3,000-$5,000 in additional interest and outgoings — annoying but not catastrophic, and still cheaper than the stress of selling under pressure or missing the right upgrade property because you sold too early.

No. An upgrader loan is just a standard owner-occupier home loan; the rate’s determined by your LVR, loan size, and credit profile, not the fact that you’re upgrading. If you’re borrowing at 80% LVR (20% deposit via equity) with clean credit, you’ll get the same competitive rate as any other owner-occupier — currently 5.9-6.5% variable for most Perth borrowers in 2025. The only time rate changes is if you need a bridging component (that portion attracts a higher short-term rate, ~7.5-8.5%) or if you’re stretching to 90% LVR with LMI (lenders add a small margin, typically +0.15-0.30%). Andy structures the loan to keep the blended rate as low as possible and explains the real cost upfront, not in the fine print.

Yes — it’s the same documentation and assessment process as any home loan for self-employed borrowers. Lenders want two years’ tax returns (or one year if you’ve been in the same industry for longer and can show strong financials), recent BAS statements if you’re a sole trader or partnership, and evidence your business is stable. If your income’s steady or growing and your existing home’s equity is solid, being self-employed doesn’t stop you upgrading. Andy works with self-employed Perth upgraders regularly — he knows which lenders are more flexible and how to present your financials so they read strongly. The trickier bit is serviceability: because lenders assess your net profit (not gross revenue), and because they’re stress-testing both loans during the overlap, you need demonstrable capacity to service ~$1,000-$1,800/month more than your current repayments for 60-90 days. If the numbers are tight, structuring a sell-first path with strong pre-approval often works better.

Pre-approval (conditional): 3-7 business days once Andy’s lodged your application with full supporting docs — payslips, tax returns, current loan statements, bank statements, ID. Formal approval (once you’ve signed a contract on the new property): 5-10 business days if your situation’s straightforward and documents are clean, sometimes 15 if the lender orders a full valuation or if you’re self-employed and they want extra financials. The slowest part is usually the applicant gathering documents (especially if they’ve changed jobs recently or their payslips are messy). Andy sends a checklist upfront so you know what to dig out, and he lodges as soon as everything’s in. If you’re competing in a hot market (auction or multi-offer scenario), having pre-approval already done means you can move fast — settlement period’s usually 30-60 days for upgraders buying established homes, sometimes 90 if it’s a build or subdivision.

Same core documents as any home loan, plus some extras because you own a property already: Standard: ID (driver’s licence + Medicare or passport), last 2 years’ tax returns if self-employed or last 3 months’ payslips + last 2 years’ PAYG summaries if employed, 3-6 months’ bank statements (all accounts including offset/savings/credit cards), copy of the signed contract of sale for the new property once you’ve made an offer. Upgrader-specific: your current home loan statement showing balance and repayment amount, a recent rates notice or desktop valuation for your current property, rental appraisal if you plan to tenant the old home during or after the upgrade. If you’re using bridging finance, lenders may also want a pre-listing appraisal or agent’s CMA (comparative market analysis) so they’re confident your old property will sell for the price you’ve estimated. Andy walks through the full checklist in your first conversation and tells you exactly what to gather — nothing more, nothing less. Most clients have everything together within 3-5 days if they’re organised.

Almost never. Paying off your current loan uses up cash you could deploy as extra deposit on the next property (lowering your new LVR and rate), or as a buffer for holding costs during the overlap period. More importantly, if you’re planning to buy first then sell, keeping the old loan in place (or even topping it up slightly via a bridging structure) preserves your liquidity — you’re not tying up $250,000-$400,000 in cash that you’ll get back in 60-90 days anyway when the old property sells. The interest cost of holding that loan for an extra few months is small compared to the flexibility it buys you. The only time paying off the old loan makes sense is if you’re selling first, settling, waiting in rental, and then buying — at that point clearing the old debt before your new application makes serviceability cleaner. But even then, it’s optional; most lenders assess you just fine with the old loan still active if they can see it’s about to be discharged.