Common questions
FAQs
Should I sell before I buy?
It depends on your financial position, risk tolerance and the current market. Selling first gives you certainty on your budget but may mean renting in between. Buying first gives more timing flexibility but requires a bridging loan or long settlement. Lendology models both options for your specific situation.
What is a bridging loan and do I need one?
A bridging loan is short-term finance that allows you to buy your next property before your current home settles. It is useful when you need to move without waiting for your sale to complete. Lendology assesses whether bridging makes financial sense for you - the costs can be significant and it is not always the right choice.
How much equity do I need to upgrade?
The equity available depends on your current property value and remaining mortgage balance. Lendology calculates your exact equity position and how it translates to deposit on the next purchase - including whether you need to fund a gap and how to structure that.
Can I keep my existing loan when upgrading?
In some cases you can port your existing loan to the new property, retaining your current rate and features. Whether this makes sense depends on your lender's portability policy and whether your current rate is still competitive. Lendology reviews both options.
How much does stamp duty cost when upgrading in SA?
Stamp duty in SA is calculated on the purchase price of your new property. On a $1.2M property, stamp duty is approximately $55,000. If you are buying before selling, this needs to be factored into your borrowing. Lendology includes stamp duty in every upgrading cost model.
Can I use my existing offset account balance as part of my deposit?
Yes. Offset account funds, redraw funds and savings can all contribute to your deposit on the next purchase. Lendology calculates your total available funds across all accounts when modelling your upgrading position.
What happens if my property sells for less than expected?
If your property sells below your expected price, it reduces the equity available for your next purchase. This may mean a higher LVR on the new loan, potentially triggering LMI. Lendology stress-tests your numbers against a range of sale prices so you are prepared for different outcomes.
Do I need to pay LMI when upgrading?
It depends on your equity position. If the sale of your current property provides enough deposit for the new purchase to be at or below 80% LVR, no LMI is required. Lendology models this precisely so you know before you commit.