Buying and selling a home: coordinate the money and dates

Moving between homes involves two transactions, and the money from one may be needed to complete the other. A workable plan must connect the sale price, debt repayment and dates rather than assuming everything will align automatically.

Estimate net proceeds, not the asking price

Start with a realistic sale assumption, then subtract the existing loan, selling expenses and any applicable discharge or break costs. Ask your lawyer about settlement adjustments. Until the sale is sufficiently certain, a hopeful asking price is not confirmed buying power.

Put both transactions on one timeline

Show agreement dates, conditions, deposit payments, finance approval, inspections and settlement. Mark which payments depend on sale proceeds. Settled notes that linked settlements can be delayed by the longer chain, so leave room for practical moving arrangements.

Discuss a mismatch before it happens

If you buy first, ask your adviser what funding could be available and the risks of holding two properties. Short-term or bridging arrangements are subject to approval, costs and a credible exit plan; they are not an automatic backup. Test a slower sale and a lower sale price.

Selling first can clarify funds, but may bring temporary accommodation and storage costs. Neither sequence removes every risk.

Build a shared action list

• Have your lawyer review how the contracts interact.
• Confirm what happens to the existing mortgage and security.
• Keep moving and temporary accommodation costs in the budget.
• Verify payment instructions independently before transferring money.

Our home loan service can help plan the lending side. Revisit pre-approval conditions for the new purchase instead of assuming the old loan can simply move with you.