Upsizing Your Home: How Do You Finance a Bigger House?

Your home might have suited you perfectly five years ago. Now there’s another child, a bedroom doubling as an office, or simply nowhere to put anything.

Upsizing means moving to a larger home. Upgrading can also mean buying a property with a better layout, location or features. Either way, the finance starts with three questions:

• What will your current home leave you after the sale
• How much can you borrow
• When will you need the money?

At Home Loan Experts, our brokers help you work through those figures before you commit to your next purchase.

Why are homeowners upsizing now in 2026?

Some families need more space regardless of where interest rates or property prices are heading. Home Loan Experts senior mortgage broker Jonathan Preston is seeing that in his own customers:

“Upgraders are most of my book at the moment. The big loans are all for upsizing families, and a lot of it is maternity-leave-driven, because the time people need a bigger house is right after another child arrives. That need tends to override how anyone feels about the market.”

His observation reflects his customers, rather than a measure of all Australian buyers. Broader research also shows upgraders remain active: CBRE’s Q3 2026 survey of 169 residential valuers identified upgraders as an active buyer group in 52% of responses. That is a survey finding, not their share of national property sales.

How to upsize your home in Australia

• Set your priorities. Define what the next property must provide and how long you expect it to suit you.
• Estimate the sale proceeds. Use a realistic sale range, current mortgage payout and selling-cost quotes.
• Check your purchase budget. Include buying costs, savings you will contribute and a separate emergency buffer.
• Compare loan options. Assess selling first with a new loan, bridging finance, equity release, portability with separately approved extra borrowing, or retaining your current home.
• Choose the buying and selling sequence. Confirm how the contract deposit and settlement will be funded.
• Arrange an appropriate finance assessment. Understand the conditions attached to pre-approval and what remains to obtain final approval.
• Coordinate the contracts and settlements. Have your conveyancer review the arrangements, and your broker confirm finance requirements before key deadlines.

Getting a pre-approval helps establish your search budget, but it does not guarantee final approval for a particular property.

When should you upsize your home?

Consider upsizing when your current home no longer meets your needs, and the move fits your finances. A growing family, changed working arrangements, or relatives moving in can all be reasons to move.

• Growing Family Needs: Are you expecting a baby, planning to have more children, or welcoming relatives to live with you? A bigger space might be essential.
• Improved Financial Stability: A new job or a salary increase can make buying a larger home more achievable.
• Feeling Cramped: If your current home feels cluttered or lacks the storage and space you need, upsizing could be the solution.
• Life Transitions: Milestones like children starting school or aging parents moving in often demand additional room for comfort and convenience.

Before deciding, identify what the next home needs to solve. Would another bedroom be enough, or do you also need a different layout, outdoor space or access to schools?

Then check whether you can cover the move and the ongoing repayments without using every dollar of your savings. Having enough for settlement is only the first part of affording a bigger home.

Can I afford to upsize my home?

You need enough money to complete the purchase and enough ongoing income to afford the resulting loan. Equity helps fund the move, but it does not establish your borrowing capacity.

Start with this estimate if you plan to sell your existing home:

Expected sale price − mortgage payout − selling costs = net sale proceeds.

Then calculate:

New purchase price + buying costs − net sale proceeds − savings contributed = estimated new loan.

Keep your emergency savings separate. If you buy before selling, you also need a plan for the temporary debt and expenses while you own both homes.

Example: moving from a $900,000 home to a $1.2 million home

The new home costs $300,000 more, but the mortgage increases by $340,000 after the assumed costs and savings contribution.

Disclaimer: These figures are illustrative. They assume the sale completes in time to fund the purchase and exclude bridging interest and LMI. Actual costs and loan approval depend on your circumstances.

How much will my repayments increase?

Using the example above, at an illustrative interest rate of 6.5% p.a. with 25 years remaining:

The calculation assumes monthly repayments, a constant rate and no fees or offset balance. The rate is an example, not a loan offer.

Compare loans over the same remaining term first. Restarting at 30 years can reduce the monthly repayment but may increase total interest. Also allow for the new property’s rates, insurance, maintenance and any strata levies.

You can use Home Loan Experts’ mortgage repayment calculator to find out how much your repayment could increase with a bigger loan after upsizing.

How much equity do I need to upsize?

A common starting estimate for accessing equity at an 80% LVR is: Current property value × 80% − existing secured debt.

For a home valued at $900,000 with a $450,000 mortgage, that is $270,000 before fees and lender adjustments. This is different from the $425,000 net sale proceeds in the example above.

Accessing equity means borrowing more money. The lender still assesses your ability to repay it.

Two different equity figures matter:

• Equity released by selling: The sale price less your mortgage payout and selling costs.
• Equity accessed before selling: The additional borrowing secured against your current property, subject to valuation and approval.

How much deposit do I need for my next home?

A contribution of 20% of the new property’s value generally allows a standard home loan at 80% LVR, with purchase costs funded separately. Smaller contributions may be accepted, but LMI or other restrictions can apply. Eligible borrowers may qualify for an LMI waiver.

Also check the contract deposit: the amount due under your purchase contract before settlement. Your eventual sale proceeds may cover your contribution but arrive too late for that payment.

What are the costs of upsizing your home?

The biggest cost associated with upsizing is stamp duty, which varies according to states and territories. If you were to buy a $1 million property in Queensland, you would have to pay over $30,000 in stamp duty.

If you were to buy a new home using a mortgage, Lenders Mortgage Insurance (LMI) fees if you’re borrowing more than 80% of the property value, which could be between $32,000 and $37,000.

Budget for selling your current property, buying the next one and managing any overlap.

Stamp duty depends on your state or territory, purchase price and eligibility for concessions. Do not assume first-home buyer concessions apply to your next purchase.

Use our Property Purchase Costs Calculator as a starting point, then add selling costs and expenses outside its breakdown. Check for duplicated fees before adding everything together.

Should I buy first or sell first when upsizing?

Selling first gives you certainty about your sale proceeds. Buying first lets you secure the next home sooner but requires finance that works before your current property settles.

Choose the sequence around your finances and the contracts you can negotiate. A preferred moving date does not establish whether the lender can fund it.

How can I finance upsizing or upgrading my home?

You can fund an upgrade with sale proceeds and a new home loan, bridging finance, an approved equity release, or borrowing that lets you keep both properties. If your existing loan is suitable, portability may let you keep it and apply separately for the extra amount. The right arrangement depends on when you sell, when you need the money and what you can afford to repay.

Start by separating three needs:

• The contract deposit due before settlement
• The money required at settlement
• The mortgage you will repay after the move.

One loan arrangement may cover more than one need, but each must be accounted for.

Sell first and use the proceeds with a new home loan

Selling and settling first releases your equity as cash. After paying out the existing mortgage and selling costs, you can put the remaining proceeds towards the next home and borrow the balance with a standard home loan.

This gives you a confirmed sale price for your budget. Allow for rent, storage and another move if you cannot move directly into the new property. Compare the replacement loan over your remaining term as well as any proposed longer term.

Use a bridging loan to buy before selling

A bridging loan funds the gap when your next purchase settles before your existing home sells. Your debt temporarily increases, then reduces when the sale proceeds are applied.

Check the peak debt during the overlap and the end debt after selling. Ask whether interest must be paid monthly or can be added to the balance, how the lender assesses repayments, and how long you have to sell. Adding interest to the loan increases the debt; it does not remove the cost.

Home Loan Experts can compare lenders’ bridging assessments and test a lower sale price or longer selling period before you commit. Read our bridging loans guide for detailed requirements.

Release equity through a top-up or refinance

An approved home loan top-up or refinance can release equity to help pay the deposit and purchase costs before your home sells. A top-up increases borrowing with your current lender; refinancing replaces the loan and may allow additional borrowing. Both require approval.

Any amount released adds to your debt and must be included in the assessment for the purchase loan. Equity release alone does not fund the entire upgrade or prove you can afford both properties.

Before proceeding, have your broker or lender confirm the total borrowing, which property secures each loan, and what must be repaid when the old home sells. Compare fees and any fixed-rate break costs before refinancing.

Keep an eligible loan and borrow the extra amount

Loan portability changes the property securing your existing loan. It can be worth checking if you want to retain an eligible fixed rate or other loan features. It does not, by itself, increase the loan amount.

For an upgrade, ask whether you can retain the existing portion and arrange separately approved extra lending. Your lender must accept the new property, the borrowing structure and settlement timing. Compare this with a replacement loan after including fees and any break costs. The portability section below explains the checks.

Keep your current home and rent it out

You can buy a bigger home and retain the old one if the lender approves the borrowing for both properties. Approved equity release may help with the contribution, while a portion of expected rental income may support the assessment. The lender still considers both loans and your other commitments.

Allow for vacancies, repairs, management fees, insurance and rates. Rental income may not cover the old property’s repayments and costs. Tell your lender about the change of use and ask your accountant about tax implications before changing the loan structure.

How do I pay the deposit before my home sells

Your contract deposit may be due before sale proceeds are available. Potential sources include accessible savings, offset funds, available redraw or an approved equity release. Confirm access and timing before making an offer.

A deposit bond may be an alternative if the seller accepts it and you qualify. It provides a guarantee instead of paying the cash deposit upfront; it does not give you cash or reduce the purchase price. You still need funds to complete settlement. Fees and conditions apply.

Your conveyancer can also discuss a smaller deposit, longer settlement or a subject-to-sale condition with the seller. These require agreement and contract advice. They can help with timing but do not replace finance approval.

Which financing option suits my upgrade?

If you need your sale proceeds to complete the purchase, start by comparing selling first, coordinating settlements and bridging finance. If you want to keep both homes, ask for an assessment based on retaining both debts. If keeping your current rate matters, check portability before arranging a discharge.

Ask Home Loan Experts to compare the funds available by each deadline, temporary repayments, estimated end loan and total costs for the options you qualify for. Bring your current loan balance, income details, savings, expected sale range and target purchase price.

How Home Loan Experts can help you upsize

An upsizing assessment needs to connect the sale, the purchase and the loan. We can help you check:

• The funds expected from your sale after the mortgage and costs.
• The borrowing needed for your target property and the resulting repayments.
• Whether a suitable lender can support your proposed sequence.
• Whether bridging, equity release, portability or retaining your current home can support the move.
• What happens to the numbers if the sale price is lower or settlement is delayed.

Bring your current loan statement, savings balances, income details, expected sale range and target purchase price. If you have already found a property, include its contract and proposed settlement date.

Please call us on 1300 889 743 or enquire online and one of our expert mortgage brokers will get back to you with some options.