Can’t wait to buy your new home while still in your current residence? A bridging loan might help you out with that difficulty. This alternative finance method empowers homeowners to meet the income gap of their sale and acquire their new property. 

However, just like any type of loan, customers need to prove they can pay the borrowed amount plus interest while the sale of their previous residence is ongoing! It typically takes 12 months to pay off the amount, but can you handle the challenge of managing two financial responsibilities simultaneously?

We’ve noted some tips below to help you figure out whether you should finance a new home before or after selling?

Tips for Selling

If you’re the careful, calculated type, selling before acquiring this kind of alternative finance in Sydney may be the best option. Consider the following factors:

  • Season: Spring is the peak selling season with the most potential buyers in Australia. Hence, you can charge higher-than-normal prices. However, the danger is that you will be overlooked due to the market’s influx of clients and properties. 

Consider selling during off-peak seasons such as winter. You may not command a higher price, but your property draws in more views due to its more affordable price and lesser foot traffic.

  • Market Trends: Are you in a seller’s market where the demand for homes is greater than the number of properties available or a buyer’s market where the number of properties is higher than the demand? 

Knowing which market you’re in can help you decide if you can sell immediately to get alternative finance or if you can hold out a bit more and get a better deal.

Selling Benefits and Disadvantages


  • With your finances in proper order, you won’t need alternative finance anymore since you have the money to pay for the new home.
  • You can wait it out ‘til you get a reasonable offer or price.


  • The price of your new home may soar, necessitating alternative finance.
  • Waiting it out can cause you to lose the potential new house if someone takes it out of the market.
  • Your family might have to move to an in-between house, which means you’ll incur another considerable expense.

Tips for Buying

However, if you’re a more daring real estate customer, you can go straight to buying your new home before you even sell the old one. You might need alternative finance eventually, but the same tips as selling apply.

To maximise your funds and lessen your loan amount, buy your new home during the off-peak season (winter) and in a buyer’s market since you can find more affordable or reasonable prices then.

Buying Benefits and Disadvantages


  • You can find a decently-sized and -priced property when the right season and market conditions converge.
  • You make the most of your money due to this strategy.
  • You can move into your new home immediately without having to pay additional rent for renting an in-between home.


  • You might need alternative finance (such as a bridging loan) to make payments.
  • If you cannot fully pay for the new house and are also getting a mortgage to finance it, you are effectively paying two simultaneous house loans.
  • Bridging loans have higher interest rates than traditional loans 

Crossing the Bridge

Ultimately, the answer to the question we posed above depends on your risk and stress tolerance. If you and your family are willing to move into your new home immediately and cut down on other expenses to fund a bridging loan, you should buy before selling.

However, if you all prefer waiting it out to get all your finances squared away to get the best deal without incurring any more debt, sell before buying.

Sometimes, this situation is less cut-and-dry than usual and needs expert counsel. That’s why we recommend you make an appointment with Wealthy You when in a property pickle for alternative financing in Sydney. We offer services that simplify home refinance. Apply for a mortgage now!