Buy First or Sell First? What Happens With Your Mortgage When You Move
Moving house brings a lot of big questions to the surface. For many Kiwi homeowners, the biggest one is whether to buy first, or sell first.
It’s a decision that comes with financial pressure, emotional stress, and a lot of moving parts, especially when you’ve got an existing mortgage in play. But you don’t have to figure it all out alone.
At Vega Mortgages, we help clients navigate this transition every day. Whether you’re upsizing, downsizing, or relocating, here’s what you need to know.
Buying First: Pros and Cons
Pros
Buying your next home before selling gives you more time and flexibility. You can search confidently without the pressure of a looming settlement date, or the risk of needing to move into short-term accommodation. It also means you’re less likely to compromise, and can wait for the right property to come up.
Cons
The big risk? Owning two homes, and managing two mortgages at once. Unless you’re in a strong financial position, you’ll likely require bridging finance – a short-term loan that covers the gap between buying and selling. Bridging finance can be helpful, but it does come with added interest and fees. Market timing also matters. In a slower market, it may take longer to sell than you’d planned.
Selling First: Pros and Cons
Pros
Selling first gives you clarity. You’ll know exactly how much equity you have to work with, making budgeting and pre-approval for your next mortgage far easier. It’s generally the safer financial option – especially in a cooling market – as it removes the risk of being left with two properties.
Cons
You might need to move fast on your next purchase, which can make the decision feel pressured. In some cases, you may need to rent temporarily, or negotiate a longer settlement to give yourself more time to buy. Equally, if you’ve already found your dream home and don’t want to lose it to another buyer, waiting to sell may not be an option. However, it is often less stressful financially.
What Happens With Your Existing Mortgage?
When moving house, your current home loan doesn’t always need to be left behind. You may be able to transfer your mortgage to the new property. This is called portability, and it can help reduce fees, maintain your fixed rate, or keep favourable loan terms.
If you’re breaking a fixed term early, it’s important to understand the potential break fees your lender might charge. You might also need a bridging loan if there’s a gap between selling and settling on your new home.
This is where working with a mortgage broker is invaluable. We assess your situation upfront, explain your options clearly, and help you avoid costly surprises.
How a Mortgage Adviser Can Help
Navigating a house move and mortgage changes at the same time can be complex. A mortgage adviser acts as your advocate, providing independent home loan advice based on your finances, property timeline, and the wider market.
At Vega Mortgages, we help you:
- Understand whether buying or selling first is the right move
- Get pre-approved for your next home loan early
- Explore options for refinancing, portability, or bridging finance
- Keep your transition as seamless (and stress-free) as possible
Our expert team is here to help you make confident decisions, without the pressure.
Practical Tips for a Smooth Move
- Get your property appraised early. Knowing your home’s market value helps guide next steps.
- Speak to a broker before making decisions. We can help you understand what you can borrow, and the timing that makes most sense for you.
- Plan ahead. Consider potential overlaps in settlement dates and whether temporary accommodation might be needed.
- Factor in your full costs. This includes legal fees, moving costs, loan break fees (if applicable), and bridging loan interest if needed.
Let’s Talk Next Steps
If you're weighing up whether to buy first or sell first, the best first step is a conversation. A quick chat with a Vegalend mortgage broker can bring clarity, and give you the confidence to move forward.
Book a free, no-obligation chat here, and we’ll help you get a better sense of your situation today.