Moving House: Your Complete Finance Guide

Understanding Your Options

When you buy a new property, you need to decide what happens with your existing mortgage.

• Transferring home loan
  Some lenders allow you to move your current mortgage to your new property. This is often referred to as a loan transfer.
• Restructuring
  You may decide to change the type of loan, split fixed and floating rates, or adjust the term.
• Refinancing
  Moving to a different bank for a sharper rate or cashback incentive.
• Bridging finance
  A short-term loan that helps if you need to buy the new home before selling your current one.

Each option has different costs and benefits, so it’s important to compare carefully. Taranaki Home Loans can walk you through these options and tailor a recommendation to your specific situation.

The Process

The steps depend on whether you sell first or buy first.

1. Get a mortgage review
   Confirm how much you can borrow for the next property and what repayment options look like.
2. Check fixed terms
   If you are still in a fixed rate, ask your bank about break fees.
3. Conditional approval
   Get pre-approval for the new home to avoid delays.
4. Settlement planning
   Decide whether your sale and purchase will settle on the same day or whether bridging finance is required.
5. Final approval
   Provide sale agreements, purchase contracts, and updated financial information to the lender.

Being organised helps avoid stressful last-minute surprises. Taranaki Home Loans can coordinate these steps for a smoother transition.

Costs to Consider

There are several costs linked to moving house mortgages.

• Break fees
  Charged if you break a fixed-rate loan early.
• Legal fees
  Required for both selling and buying.
• Valuation fees
  Sometimes requested by the bank to confirm the new property’s value.
• Bridging finance interest
• Short-term loans often carry higher interest rates until your existing property is sold.
• Moving expenses
  Truck hire, movers, and utility reconnections add up.

Budgeting for these helps keep your move on track financially.

Managing Timing and Cash Flow

The biggest challenge when moving house is coordinating the sale and purchase.

• Same-day settlement
  Simplifies the process but requires everything to align perfectly.
• Sell first
  Provides certainty around your budget but may require temporary accommodation.
• Buy first
  Gives you more choice and time but may mean taking on bridging finance.

Your moving house mortgage choice will depend on which approach best suits your circumstances. Our team at Taranaki Home Loans can help you plan for either path.

Reviewing Your Loan After the Move

Moving house is a natural time to review your mortgage.

• Loan structure
  Adjust fixed and floating rates to match your new goals.
• Repayment term
  Shorten or extend depending on income and affordability.
• Active monitoring
  Keeping track of fixed-term expiries and rate changes ensures your loan continues to work for you.
• Future flexibility
  Consider whether you’ll need to access equity later for renovations or investments.

A structured review ensures your new mortgage stays aligned with your financial plans. Taranaki Home Loans offers regular reviews to help you stay ahead.

Conclusion & Next Steps

A moving house mortgage requires planning, but with the right approach, it can be straightforward. Understanding options like transferring, refinancing, or using bridging finance ensures you make the right financial choice.

If you’re planning a move, contact us at Taranaki Home Loans. We’ll review your options, guide you through the finance when moving house, and help you transition smoothly into your new home.