Next home buyers
Buy first or sell first? Your options, explained
Rhys ButlerMortgage broker, Credit Representative 539019
· Last checked 3 November 2026
The short version
- There are four ways to do it: sell first, buy first with a bridging loan, buy subject to sale, or settle both on the same day.
- Selling first is lower risk but can mean renting and moving twice.
- Buying first means one move, but you carry both properties until yours sells.
- Four questions point to the answer: how fast homes like yours sell, how rare the next home is, your equity, and how you'd cope with moving twice.
Is it better to buy first or sell first?
Neither is always better. Selling first gives you a certain budget but risks a gap between homes. Buying first means one move and no missing the right house, but you carry two properties and sell against the clock. The right choice depends on your market, your equity and your nerves.
Option 1: sell first, then buy
You sell, know your exact budget, and shop as a strong buyer. The risk is the gap: renting, storing furniture and moving twice. A long settlement of 90 days or more, or renting your old home back from the buyer, can cover it.
Option 2: buy first, with a bridging loan
A bridging loan lets you buy before you sell. The lender holds both homes as security for a set period, usually 6 to 12 months. When your home sells, the proceeds pay the loan down to a normal mortgage.
Most lenders add the interest to the loan while you wait, so the debt grows until the sale lands. Lenders also value your current home cautiously. The biggest risk is the sale price: if your home sells for $50,000 less than you hoped, your mortgage ends up $50,000 bigger.
Where a bridging loan has no end debt, lenders usually don't pay a commission, so a fee for our service may apply. We tell you upfront, before anything goes ahead.
Option 3: buy subject to sale
You make your offer conditional on selling your current home. It protects you, and sellers often accept it on slower listings. In a busy market it makes your offer easier to beat, and many sellers add a clause that lets them keep marketing the home.
Option 4: settle both on the same day
You line up both contracts so the sale and purchase settle together and the money flows straight across. It's the clean option when timelines match. One delay can affect the whole chain, so build in a few buffer days.
How do I choose?
| Option | Best when | Main risk |
|---|---|---|
| Sell first | Your sale market is slow or uncertain | Renting and moving twice |
| Buy first (bridging) | Strong equity, homes like yours sell quickly | Selling for less, or slower, than planned |
| Subject to sale | Slower markets, unusual properties | A weaker offer |
| Same-day settlement | Timelines line up | One delay affects both |
What we tell our clients
Make the sequencing decision before you fall for the next place, and give it as much thought as the suburb. We price your current home like a buyer would, not like an owner, and run every option on that number. If a plan only works at the top of the range, it isn't a plan yet.
Planning your next move in Brisbane? See how we map out your next home, including how a bridging loan works.
General information only. Bridging finance carries real risk if a sale takes longer or sells for less than expected. All lending is subject to lender approval. Examples are illustrative.
Rhys Butler is a Brisbane mortgage broker and co-founder of My Mortgage Butler. He's been a mortgage broker for 4 years and plans next home moves with clients and their agents.
Credit Representative 539019 of Australian Finance Group Ltd, Australian Credit Licence 389087.
