If you're moving from one home to another, the biggest decision is timing. Do you sell first and risk having nowhere to go, or buy first and risk owning two homes? With homes taking longer to sell in 2026, a median 39 days nationally according to Cotality, the question matters more than usual.
Option 1: Sell first
How it works: You sell your current home, then buy your next one with a known budget.
Pros: - You know exactly how much you have - No risk of holding two mortgages - Stronger position when negotiating your purchase, since you're not dependent on a sale
Cons: - You may need to rent or stay with family in between - Moving twice costs money - You might struggle to find the right home in time
Tip: Negotiate a longer settlement on your sale (e.g. 10 to 12 weeks) to give yourself time to buy.
Option 2: Buy first
How it works: You buy your next home, then sell your current one.
Pros: - You secure the home you want - Only one move
Cons: - You may need bridging finance - If your sale takes longer or sells for less, you're under pressure - In a falling market, the risk is higher
Option 3: Bridging finance
Bridging loans let you buy before you sell. The lender combines your existing loan and new purchase, then you repay the bridging amount when your old home sells.
Typical features: - Bridging period usually 6 to 12 months - Interest often capitalised (added to the loan) during the bridging period - Lender assesses the "end debt" after your sale
Example: - Current home value: $1,100,000, loan $400,000 - New home: $1,500,000 plus costs - Peak debt: about $1,980,000 - Expected end debt after selling: roughly $950,000, after sale costs and capitalised interest
The lender needs to be comfortable you can service the end debt and that your sale price estimate is realistic.
We have a separate guide on bridging loans with more detail.
Option 4: Simultaneous settlement
Aim to exchange on both properties close together and settle on the same day. This takes coordination and some luck, but it avoids bridging and renting.
The 2026 factor
With values down in Sydney and Melbourne and stock sitting longer, buying first carries more risk than it did in a rising market. Be conservative about your sale price and timeline. Getting an agent's appraisal based on recent sales, not peak prices, is essential.
Questions to ask yourself
- How confident am I about my sale price?
- Could I cope financially if my sale took six months longer?
- How much do I value certainty versus convenience?
- Is the home I want hard to find?
Frequently asked questions
What's the maximum bridging period?
Usually 6 to 12 months, depending on the lender and whether you're building.
Do I pay interest on two loans during bridging?
Often you pay interest on the end debt only, with bridging interest capitalised. Policies vary.
Can I use bridging finance if I'm building my next home?
Yes. Some lenders allow longer bridging periods for construction.
Upgrading? Call Finfident on 0424 545 654. We'll help you decide whether to buy or sell first, and structure the finance if you need to bridge.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.