Buying and selling a home at the same time

Buying and selling at the same time? If you are an ASB customer you may be able to keep your existing home loan and use your new home as security under a new mortgage. If you decide to buy your new house before you’ve sold your current one, we may be able to help you with a bridging loan to make this purchase.


Buying before you sell

What happens when you’ve found the perfect new home but haven’t yet sold your existing one? If you need the proceeds from the sale of your existing home to buy your new one, but the timing is out, you may like to consider bridging finance.

Bridging finance is a short-term home loan that can help you purchase your new home while you still own your existing one, enabling you to buy a new property before you’ve sold your existing one.

Benefits and risks of bridging finance


  • Search for a new home with confidence, even if you haven’t sold your existing property.
  • Pay interest only on your bridging loan, which can make it easier to manage your payments.
  • If you have funds left over from the sale of your existing home, you could consider using this money to reduce the balance of your bridging loan.


  • You’ll have two loans for a period of time, so you’ll need to keep up with payments on both.
  • Your current home may not sell immediately.
  • Your current home may sell for less than expected, so you end up with more debt than what you planned for.

As you’d expect, bridging finance loans are subject to specific lending criteria. Please discuss which options are best for you with one of our home loan experts before you sign anything.


Increasing your home loan

If you need to increase your borrowings to help with your new purchase, please talk to us to see how we can help you.

If you have an existing fixed interest rate loan and would like to keep it, we can look to establish a new separate loan just for your increased amount.

Depending on the equity you have in your new property, we may ask you for a valuation from a registered valuer. Any new or increased lending is subject to our lending criteria. Our lending specialists can help you through this process.


Buying and selling a home at the same time

Typically, when customers sell their property, we’ll receive a request from their solicitor to release the mortgage on their existing home. Often customers advise us in advance of the sale what they would like to do and might choose to keep their existing loan and swap (substitute) the security they provided for their loan from their property to their new home.

If you’re in this situation, talk to us to see how we can help you. Consider too, that keeping your loan as it is, can be beneficial if you’re on a low fixed interest rate or you want to avoid an early repayment adjustment. Remember, with a fixed interest rate loan, you’ll have the certainty of knowing your payments will continue on as they have been for the remainder of the fixed interest rate term.

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Home loans Buying and selling a home at the same time