Upsizing 101: A complete homeowners guide

Are your kids tired of sharing a bedroom? Feeling cramped when the in laws come to stay? Struggling to find new space-saving ways to store all of your belongings? 

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If you've outgrown your current home or are ready to expand your family, it could be time to consider upsizing. As an upsizer, you’re likely moving into a new life stage and need a bigger property to match your needs. 

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While upsizing comes with a tonne of benefits, it’s important to understand how the process works and what it takes to secure an upsizer home loan. Not sure where to start? Keep reading to discover everything you need to know about upsizing as a homeowner.

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Is upsizing right for you?

As the name suggests, upsizing is when a homeowner moves into a larger property that is a better fit for them and their lifestyle. To make this happen, you’ll need to sell your current property and purchase a new, larger home (although, it doesn’t necessarily have to happen in that order). 

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In most cases, homeowners are driven by lifestyle factors when deciding whether or not to upsize. That’s because your home should help you live the life you want, rather than make it difficult to entertain, grow your family or have your relatives visit. 

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Broadly speaking, here are some of the common reasons homeowners choose to upsize their property:

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• You’ve outgrown your current home: your first property is usually your stepping stone into the property market. While a small two-bedroom apartment might suit your lifestyle in your 20s, you’re probably going to find yourself tight on space as the years go on.
  
  
• You’re wanting to grow your family: whether you’re planning for your first or third child, you want to make sure your home has enough space for your growing family. If your current property isn’t cutting it, you might be ready to move into a larger home with extra living spaces and a bigger backyard for the kids.
  
  
• You’re craving extra space to foster your hobbies: wish you had room for your surfboards? Want to create a home gym in your garage? Ready to test out your gardening skills? With a bigger property, you can make your hobbies a reality. 

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Once you’ve figured out if upsizing is right for you, it’s time to start your property search. Make sure to keep in mind:

• How much space do you need? Be specific about the ideal number of bedrooms, bathrooms and car spaces you need.
  
  
• Where do you want to be located? If being close to your parents or relatives is important, make sure you look for suburbs that are conveniently located.
  
  
• What kind of property are you looking for? Do you want a turnkey home that is ready to move into, or are you happy with an older property that might need some repairs or renovations? 

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How to upsize

Now onto the part you’ve been waiting for: what is involved in upsizing as a homeowner?

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Broadly speaking, you have two options when it comes to upsizing:

• You can either secure a new, larger property 
• You can renovate your existing home and add some extra space

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In either case, you’re going to need some capital to make this purchase or renovation happen. With a property already under your belt as a homeowner, you don’t need to start from scratch to save up a massive amount of money. Instead, you can access the equity in your existing home to fund your upsizing move. 

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This equity (a.k.a. The difference between how much your property is worth and how much you still have remaining on your loan) can be used as a deposit to get you into your new home sooner. 

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Rather than waiting months or years to save up for a down payment, you can use this equity as a way to refinance your existing home loan and access a larger loan amount. 

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Alternatively, you can choose to sell your current home first and then purchase your new larger property (although that does come with lots of complexities and costs you need to factor in). 

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How to navigate two settlements at once as an upsizer

The most common way to upsize is to sell your current home and use the proceeds of that sale to purchase your next property. 

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Unfortunately, this comes with a range of challenges, including:

• It can be difficult to line up two settlements, which means you may need to move into temporary accommodation (which can come with unwanted hassle and costs).
  
  
• You might feel rushed to make a purchase you’re not 100% happy with, particularly if your current home sells sooner than expected.
  
  
• You might find it difficult to secure a bridging loan from the big banks as they can be slow and difficult to deal with (they’re much more focused on more traditional 30-year mortgages). 

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With Bridgit’s bridging loan, you can spend more time looking for your dream home and not have to worry about paying two mortgages at once. 

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We give you the control to buy on your own terms with fast same-day approval, settlement in as little as 48 hours and three months interest-free. 

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Ready to secure your dream home as an upsizer? Apply for a Bridgit bridging loan and secure approval today. 

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