Downsizing home loans in South West Sydney
Ready for something smaller and simpler? We'll help South West Sydney downsizers sort the finance for their next chapter.
Less house, more life? Let's make downsizing simple.
The kids have moved out, the garden's getting harder to keep up with, and a smaller place closer to everything is starting to sound pretty good. Downsizing can free up equity and time - but the finance side isn't always as simple as selling and buying.
At Infinity Mortgage Brokers, we help downsizers across Bankstown and South West Sydney plan the move with clear numbers and no pressure.
Do I need a loan to downsize?
Not always. If your next home costs less than your current one sells for, the sale may cover it. But finance can still help with:
- Buying your next home before your current one sells
- Covering stamp duty and moving costs
- Renovating the new place
- Keeping some money aside instead of tying it all up in property
- Managing the gap between settlements
We'll look at your figures and tell you whether you need to borrow at all, and how little you can get away with.
Can I still get a loan if I'm close to retirement?
Often, yes. Lenders will want to know how the loan will be repaid once you stop working, and each one treats age and income differently.
Downsizing can also affect your super and pension position, so it's worth speaking with your financial adviser as well. We'll look after the lending side and work in with them.
How Infinity Mortgage Brokers can help
We make downsizing easy for South West Sydney locals, whether you're staying in the area or moving closer to family. Here's what you get with us:
- A clear picture of what your sale should release
- Lenders that suit borrowers nearing or in retirement
- Bridging options if the right home comes up first
- The costs of the move laid out up front
- Patient, plain-English advice
There's no rush, and no silly questions.
Thinking about a simpler life?
Let's chat! Schedule a free introductory call with us now.
Do I need a home loan when downsizing in South West Sydney?
You do not always need a home loan when downsizing. If your next home in South West Sydney costs less than your current one sells for, the sale may cover everything.
Why some downsizers still borrow
A small loan can help manage timing, pay for renovations on the new place or keep some money outside property.
Buying before you sell
A bridging loan can carry you through to settlement if the right home comes up first.
Costs to allow for
Agent fees, transfer duty on the purchase, legal costs and moving expenses all reduce what is left over.
Working out what you need
Infinity Mortgage Brokers looks at your figures and tells you whether you need to borrow at all, and what the smallest workable loan would be. Our guide to downsizer home loans covers the options.
Can I get a downsizing home loan if I am retired or close to retiring?
Yes, you can often get a downsizing home loan when retired or close to retiring, though the assessment is more involved. The lender must be confident the loan can be repaid without hardship.
The exit strategy
Lenders ask how you will clear the loan once you stop working. Acceptable answers include superannuation, selling another asset or continuing income such as rent.
How policies differ
Policies on age vary widely. Some lenders shorten the term or limit the amount, and others take a more flexible view.
What strengthens an application
A small loan relative to the property's value helps. So do clear evidence of income or assets and a realistic repayment plan.
Finding the right lender
Infinity Mortgage Brokers places Bankstown downsizers with a lender whose rules fit their situation. See our guide to home loans for retirees.
What else should I plan for financially when downsizing?
When downsizing, plan for selling costs, transfer duty on the new purchase, moving expenses and the effect on your super and pension. Downsizing can release equity and lower running costs, but it is not free.
Costs of the move
Allow for agent fees and marketing on the sale, transfer duty on the purchase, legal fees and removalists.
Super and the Age Pension
Some people aged 55 and over can make a downsizer contribution to super from the sale proceeds. Money left over can affect Age Pension entitlements. Those are questions for a financial adviser or accountant.
Running costs
A smaller home or apartment may cut rates and upkeep, but strata levies can offset part of the saving.
Bringing it together
Infinity Mortgage Brokers handles the lending and coordinates with your advisers so the whole plan fits. Our guides to the best suburbs for downsizers and the best lifestyle suburbs in South West Sydney may help with the search.
Should I buy before I sell when downsizing?
Buying before you sell when downsizing makes sense if the right home comes up first and you can carry the cost of a bridging loan. Selling first is the more cautious path.
Why some downsizers buy first
Well located single level homes and newer apartments close to shops and transport are in limited supply. Waiting can mean missing out.
The cost of buying first
Interest accumulates on the bridging loan until your current home settles.
The cautious alternative
Sell first, perhaps with a longer settlement or a short rental, so you know exactly what you have to spend.
Choosing calmly
Infinity Mortgage Brokers sets out both paths with figures for downsizers from Lugarno to Mortdale. Read more about bridging loans, or compare areas in our guide to the safest suburbs.
