Unlock the secrets to buying a bigger home for your family

Your family is outgrowing your current place and you need more rooms, a proper backyard, or somewhere the kids can spread out without climbing the walls.

The challenge is not whether you can afford it on paper. It is whether a lender will recognise your income properly, whether your existing loan or debts will hold you back, and whether you can access enough lending to buy what you actually need without paying thousands in Lenders Mortgage Insurance or getting stuck with a rate that bites into your weekly budget.

How much can you actually borrow when you need a bigger property

Your borrowing capacity depends on how a lender assesses your income, your existing debts, and the deposit you can put down. For bricklayers working under ABN arrangements, income verification is not always straightforward. Some lenders rely on tax returns and notice of assessments, which can understate your true earning capacity if you have claimed deductions for vehicle costs, tools, or materials. Others will accept accountant letters or business activity statements if your income is consistent and you have been trading for at least two years. If you are moving from a smaller property to a larger one, the equity you have built in your current home can be used as part of your deposit, which reduces the loan amount you need to borrow and may help you avoid Lenders Mortgage Insurance.

Consider a bricklayer who purchased a unit several years ago and has paid down the loan while the property has increased in value. That equity becomes available to use toward the next purchase. If the current property is worth more than what is owed, the difference can be leveraged without needing to sell first, depending on the strategy you choose. The amount you can borrow is also affected by ongoing debts like car loans, credit card limits, or trade vehicle finance. Lenders assess these commitments at their full limit, not what you currently owe, so reducing or closing unused credit can improve your borrowing capacity by several thousand dollars.

Using equity from your current home without selling it first

You do not need to sell your current property before buying the next one if you have enough equity and your income can service both loans. A bridging loan allows you to purchase the new property while still owning the old one, giving you time to sell without the pressure of temporary accommodation or rushed settlement timeframes. The bridging loan is secured against both properties and is typically interest-only for a short period, usually six to twelve months. Once your original property sells, the bridging loan is repaid and you are left with a single home loan on the new property.

This approach works when you have at least 20% equity in your current home and your income can cover the interest on both loans during the bridging period. If your current property is tenanted or you plan to rent it out, that rental income can be used to offset the holding costs, though lenders will typically only count 80% of the rent when assessing serviceability. Another option is to refinance your existing home loan and pull out equity as cash, which you then use as a deposit for the larger property. This avoids the need for a bridging loan but increases the debt on your original property. It works well if you are keeping the first property as an investment and the rent covers the higher repayments.

Fixed or variable rate when your loan amount is going up

A variable rate gives you flexibility to make extra repayments without penalty and allows you to benefit if interest rates drop. A fixed rate locks in your repayments for a set period, which can help with budgeting when you are managing a larger loan amount and want certainty over your monthly outgoings. The downside is that you cannot make significant extra repayments without incurring break costs, and if rates fall, you will not benefit until the fixed term ends.

A split loan combines both. You might fix 50% or 60% of the loan amount to protect against rate rises, while keeping the rest on a variable rate so you can pay extra when work is steady or you have a good month. For bricklayers who earn more during warmer months when construction activity picks up, a variable or split structure allows you to put extra income toward the loan without restriction. Some lenders also offer offset accounts on the variable portion, which reduces the interest you pay without locking the funds away. If you have irregular income or prefer the option to pay down the loan faster, avoid fixing the full amount.

How loan features affect your flexibility when upgrading

An offset account linked to your home loan reduces the interest charged by offsetting your savings balance against the loan amount. If you have a loan of $600,000 and $30,000 sitting in an offset account, you only pay interest on $570,000. The funds remain accessible, which is useful if you need cash for unexpected costs or want to keep a buffer for slower work periods. Not all loan products include an offset, and some that do charge a higher interest rate or annual fee, so compare the cost against the benefit.

A portable loan allows you to transfer your existing home loan to a new property without refinancing or paying discharge fees. If you are selling your current home and buying the next one around the same time, portability can save you several thousand dollars in exit and application costs. Some lenders also allow you to increase the loan amount when you port it, so you can borrow the additional funds needed for the larger property without starting a new application. Redraw facilities let you access extra repayments you have made, but they are controlled by the lender and may have restrictions on how much you can withdraw or how often. If you want guaranteed access to your savings, an offset account is more reliable.

What happens if your current loan has a fixed rate that has not expired

If you are selling your current property and the loan is still in a fixed rate period, you will likely incur break costs. These are calculated based on the difference between your fixed rate and the current wholesale rates, multiplied by the remaining time on the fixed term and the outstanding loan balance. The amount can range from a few hundred dollars to tens of thousands, depending on how much rates have moved since you fixed.

In a scenario where you locked in a rate of 2.5% and current rates are higher, the break cost will be minimal or even zero, because the lender is not losing money by you exiting early. If you fixed at 5% and rates have since dropped, the cost will be significant. Some lenders will waive or reduce break costs if you are refinancing with them or increasing your loan amount with the same lender, so it is worth asking before assuming you need to pay the full amount. If the break cost is substantial and you are not in a rush to move, waiting until the fixed term ends may be the cheaper option. Alternatively, porting the loan to the new property avoids break costs altogether, provided your lender offers portability and the new property is an owner-occupied home.

Pre-approval gives you a realistic budget before you start looking

Getting pre-approval before you start house hunting tells you exactly how much you can borrow and shows sellers that you are a serious buyer. Pre-approval involves submitting your income documents, bank statements, and details of your current debts to a lender, who then assesses your borrowing capacity and provides conditional approval for a loan amount. It is valid for three to six months, depending on the lender, and can be updated if your circumstances change.

For bricklayers, pre-approval is particularly useful because it allows you to address any income verification issues early, rather than finding out at the last minute that a lender will not accept your accountant letter or that your tax return does not show enough income. It also gives you time to close unused credit cards, pay down debts, or adjust your business structure if needed to improve your application. A pre-approval is not a guarantee, as the lender will still need to approve the specific property you choose, but it removes most of the uncertainty around whether you can borrow what you need.

Call one of our team or book an appointment at a time that works for you. We work with lenders who understand how bricklayers earn and structure their finances, and we will make sure your application reflects your actual income and capacity, not just what a tax return shows.

Frequently Asked Questions