Looking to buy your next property, but unsure of where to start? Don’t risk applying with a home lender whose policy you don’t meet and getting declined- let our expert mortgage brokers make it simple.

We will work out your funds position and borrowing capacity in an obligation-free preliminary assessment. We ensure you meet lender credit policy and review hundreds of potential home loan options from our panel of 40+ top home lenders.

We will review over 40 lender options from our panel of top home lenders to find you an amazing deal and maximise your chance of approval.

The figures can be more complex for a second home loan. We’ll provide a detailed preliminary assessment showing you all the important figures- deposit required, borrowing capacity, estimated sale proceeds (if you’re selling) and much more.

Not sure how to marry up settlement timeframes or need information on renting out your current property? We have extensive knowledge and experience with applying for a home loan for a second property and are available to answer any questions you may have on the process.


All lenders need to identify potential new applicants in accordance with legislation. A passport, driver’s licence and Medicare card will usually meet all lender requirements, but substitute documents can be used if you don’t hold one or more of these items.

Proof of equity in your current home

If you are keeping your current property, we will organise a valuation (usually at no charge) on your current home to calculate how much equity is available in that property. You may be able to borrow against this equity to reduce your cash deposit requirements

Income validation

You will need to provide evidence that you have enough income to service the loan amount you are seeking to get approval for. We will confirm which supporting documents are required here as part of your preliminary assessment. If we are factoring in proposed rental income for your current property, we will also need a rental appraisal from a real estate agent.

Details of your financial position

You will need to provide details and statements for existing consumer liabilities (car/personal loans, credit cards etc.) that you have. We will confirm what is required through the application process.

Approximate price range and desired location

We recommend you doing some research so you can have an idea of:

  • What type of property you are looking for (unit, townhouse, detached house)
  • Rough price range and location you would like to buy in

As part of your obligation-free Preliminary Assessment, we will:

  • See if you can keep your current home as an investment property
  • Calculate your sale proceeds if you choose to or need to sell your current home
  • Calculate how much equity you have in your current property
  • Investigate Bridging Finance for you, if required
  • Find the right home loan provider for you
  • Explain all costs, fees, charges and the home loan process

Ready to buy your next home?

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  1. Contact our mortgage broker for an obligation-free phone consultation
  2. Use our secure client portal to upload your information and verifying documents
  3. We will conduct a full preliminary assessment of your position and present your second property loan figures and options
  4. Select your preferred home lender option and we will prepare and lodge your application with that lender.
  5. When you are approved, we will organise the loan documentation and any other items required to get your purchase ready to settle
  6. We will co-ordinate the settlement date with your solicitor and you will take ownership of the property on the contracted settlement date!
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Whatever your reason for buying a new home is, read on for more information and the process relating to buying your next home. 

Jump to a section in the guide:

  1. Can I Keep My Current Property?
  2. Do I need a deposit?
  3. Is a Bridging Loan an Option?
  4. Pre-Approval and House Hunting
  5. Loan Settlement

One of the most common questions we get when buying a second property is ‘can I keep my current property?’ Generally, the intention is to turn the current property into an investment. 

This isn’t a simple query that can be answered with a basic calculator- we will conduct a detailed preliminary assessment that will look into:

  • The amount of equity in your current home
  • Potential rental return and negative gearing impact of your current property
  • How much you would like to spend on the new property
  • Whether you can afford the total proposed debt if you retained the property
  • Maximum buying power if the property is retained

If selling the property is necessary, we can also crunch the numbers for you on:

  • Approximate selling costs and fees 
  • Estimated sale proceeds that can be put towards the new purchase
  • Maximum borrowing and buying capacity with the sale factored in

It is important to factor in all costs here, including selling costs, acquisition costs, interest, fees and legal costs. We have extensive experience with scenarios like these and will spell out your options and step you through them. 

Click below to get your free preliminary assessment underway. 

The short answer is yes, you need a deposit to buy your second home. However, these funds can potentially be sourced from:

  • The sale of your existing property (most common)
  • Borrowing against the existing equity you have in your current home
  • Savings in your account

Much like when purchasing your first home, there are different tiers of required deposit:

  • 8% of the property price plus government and associated costs is generally the minimum
  • 12% of the property price plus costs will substantially reduce the Lenders Mortgage Insurance (LMI) Premium and attract a better interest rate
  • 20% of the property price plus costs will remove LMI as a cost and attract an even better interest rate

As your mortgage broker, we will be calculate the funds position for you and advise if there is any available equity you could look to access.

bridging loan is structured to allow you to purchase the new property without having sold your existing property yet. 

The lender will lend you the full amount to purchase the new property and allow you a time period of 6-12 months after the settlement of the bridging loan in which to sell your current property. 

Once your old property is sold, you then need to reduce the remaining lending down to the amount agreed with the bank. A bridging loan has more strict criteria than a normal home loan including:

  • Bridging loan interest rates are generally much higher than standard interest rates
  • They generally require you to hold substantial equity in your current property
  • You need to meet the bank’s income requirements to service the loan during the bridging period and also the end debt. Some banks will allow interest only repayments during the bridging period. 
  • You can usually only do bridging finance with your current lender if they offer it at all. Not all lenders offer bridging products. 
  • If your current lender does not permit bridging, we may have a few options that allow you to refinance to them for the purpose of bridging

You should also note that bridging loans are often priced for risk by lenders, with an interest rate substantially higher than a regular home loan. 

Bridging scenarios can be quite complex- get in touch with for a free preliminary assessment to find out what options are available to you.

Once we have worked out the plan of action with your existing property, equity and savings, it is time to get you pre-approved! 

We will work with our panel of over 40 lenders to find the lender who is most likely to approve your unique circumstances and give you a great home loan deal. If you are selling your existing property, we do not need to wait until it is sold to get you pre-approved. In fact, we encourage our clients to engage us and their chosen lender before listing. This is called getting an approval ‘subject to sale’. 

We recommend our clients to call us when they are making an offer to step them through:

  • Timing of sale of your current property (if applicable)
  • Deposit amounts
  • Purchase contract clauses
  • Settlement timeframes

Once you’ve located a property and successfully negotiated, we will organise the valuation of the property, conversion of your pre-approval to formal approval and the signing of associated loan documentation. 

We will co-ordinate with the lender and your conveyancing solicitor to ensure everything is order and your settlement is booked in a timely manner. 

One thing you may wish to request (if the seller agrees) is early access to the property. Depending on if the property you are purchasing is vacant or not, some sellers may be happy to give you access before the settlement date to begin moving your belongings in. 

On the settlement day stated in the contract, the loan will settle you formally take ownership of the property, congratulations!

Want to find out loan repayment amounts, see how an offset works and more? Check out our range of loan calculators below for more information.

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Can I have 2 owner-occupied homes?

Different home lenders have different policies and requirements, but a substantial portion of lenders will allow you to have a secondary residence and potentially get owner occupied home loan rates for both properties. You typically cannot use proposed rental income in this scenario, which may impact borrowing power.

What type of home loan should I get?

We will discuss this in full detail with you as part of our preliminary assessment, but home loans can be setup as:

  • Owner-occupied or investment home loans (this is dictated by what the loan funds are utilised for)
  • Variable or fixed home loans
  • Principal and interest or interest only repayments

We will talk through all of these with you as part of our home loan application process

What are the pros and cons of fixed interest rates?

The main benefit of fixing in your interest rate is certainty around your rate and repayments for that time period (generally 1-5 years). You know exactly what your monthly repayment will be and you don’t need to worry about interest rate changes on that loan until the fix expires

The main downside to fixing is a lack of flexibility- you generally cannot have an offset account on a fixed loan, or make many additional repayments. If you needed to break the fix for any reason (selling the property, separation, refinancing elsewhere) then you can also potentially pay a hefty fixed rate break cost to do so.

What are the pros and cons of variable interest rates?

The main benefit of having a variable rate is full flexibility. You can generally make unlimited extra repayments, change the loan size and splits, have an offset account and refinance without penalty.

The downside to a variable can be the uncertainty around rates- your rate will fluctuate, generally in line with the Reserve Bank of Australia (RBA) rate changes. If RBA rates increase, your interest rate usually will too. The opposite is true though- if RBA rates decrease, your rate typically will as well.

Can I get a tax benefit with a second home loan?

If your first property or the second property you purchase is for investment purposes, the home loan interest on that home loan may be tax deductible. We always strongly recommend you discuss tax deductibility with a suitably qualified accountant prior to purchasing your second home.