# HL-Q034: Choosing a loan We're moving to a bigger home and may need to buy before our current place sells. Which lenders would you suggest we talk to about financing the move? Borrower: Family buying before selling [Study](https://nzbrands.ai/research/banking/home-lending/) · Collected 11 October 2026 ## chatgpt Answer ID: 989a4c71-7802-4aa2-96b0-0ae043aea30b For a move-up purchase in New Zealand, I’d start by talking to your existing mortgage lender, then compare a couple of other major banks and an independent mortgage adviser. The key product to ask about is bridging finance — a short-term loan that lets you buy your next home before the sale proceeds from your current home arrive. The right option will depend on how much equity you have in your current home, how much you need to borrow for the next one, and whether your existing property is already on the market. New Zealand’s Settled.govt.nz guidance also highlights the cost and risk of carrying two home loans at once. [Thinking about your finances when selling](https://www.settled.govt.nz/selling-a-home/thinking-of-selling/thinking-about-your-finances-when-selling/)[Bridging Finance](https://www.anz.co.nz/personal/home-loans-mortgages/buying/bridging-finance/) ## Lenders I'd suggest contacting 1. ANZ New Zealand Offers bridging finance for buying before selling, with home loan coaches and mobile mortgage managers to discuss your options. A good bank to include in your comparison, whether or not you already bank with ANZ. [Bridging Finance](https://www.anz.co.nz/personal/home-loans-mortgages/buying/bridging-finance/) Contact: 0800 269 4663 [Bridging finance and eligibility](https://www.anz.co.nz/personal/home-loans-mortgages/buying/bridging-finance/) 2. ASB Worth approaching if you want to keep your existing mortgage in place while purchasing the next property. ASB says eligible customers may be able to use bridging finance, and it explains how buying and selling at the same time can be structured. [Bridging finance - Buying & selling at the same time](https://www.asb.co.nz/home-loans-mortgages/buying-and-selling-house-guide.html) Contact: 0800 100 600 [Buying and selling a home at the same time](https://www.asb.co.nz/home-loans-mortgages/buying-and-selling-house-guide.html) 3. BNZ Particularly useful to ask about if your current home hasn't sold yet. BNZ explains the difference between open bridging (buying before your existing home is sold) and closed bridging (both sales are agreed, but settlement dates differ). It also discusses the evidence and repayment plan you may need. [How bridging finance works](https://www.bnz.co.nz/personal-banking/life-moments/how-bridging-finance-works) [BNZ bridging finance guide](https://www.bnz.co.nz/personal-banking/life-moments/how-bridging-finance-works) 4. Westpac New Zealand Another option for a short-term increase to your existing home loan or a bridging loan. Ask whether your current mortgage can be transferred to the new property and how the bank would structure the temporary overlap. [Options with your current home](https://www.westpac.co.nz/home-loans-mortgages/next-home/options-current-home/)[Selling and buying - financial considerations](https://www.westpac.co.nz/home-loans-mortgages/next-home/financial-considerations/) [Westpac options for your next home](https://www.westpac.co.nz/home-loans-mortgages/next-home/options-current-home/) ![Kiwibank Goes Live with ACI Worldwide's Enterprise Payments Platform](https://images.openai.com/static-rsc-4/Lk4UN_-XuTkVxZk25i7Ip3HoxelkPTL5-r_hoFBOTCflAHv8bYBG7edO2CSfW0e5FYiLH5Uf6JonPJdGZYUApsstf7MAWh-uOa-p_tNQyer_6Mhu2dmcUrQg8QqbV6S2bjCMQJ_rl55gdLnZvrTFf8uuI7BVfPQRAtGl74WU7d4?purpose=inline) 5. Kiwibank Worth comparing for its next-home lending options and calculator, which helps you estimate borrowing capacity when you might own two homes temporarily. Kiwibank also discusses using existing equity and transitioning your current mortgage. Confirm the specific bridging structure with a home loan specialist. [Buying your next home | Home loans](https://www.kiwibank.co.nz/personal-banking/home-loans/getting-a-home-loan/buying-your-next-home/)[Next home calculator | Home loans](https://www.kiwibank.co.nz/personal-banking/home-loans/calculators/next-home-calculator/) [Buying your next home](https://www.kiwibank.co.nz/personal-banking/home-loans/getting-a-home-loan/buying-your-next-home/) I'd also speak to an independent mortgage adviser who can compare several lenders' policies without you having to make separate applications to each bank. Check the adviser's credentials and the scope of their advice through the [Financial Markets Authority's guidance](https://www.fma.govt.nz/consumer/getting-advice/finding-an-adviser/). [How do I find an adviser?](https://www.fma.govt.nz/consumer/getting-advice/finding-an-adviser/)[Financial Advice Provider (FAP)](https://www.fma.govt.nz/business/services/financial-advice-provider/) ## What I'd ask each lender The important thing is to compare the whole financing arrangement, not just the advertised interest rate. - Open versus closed bridging: Can you borrow before your current home has sold, or must you have an unconditional sale agreement? - Maximum borrowing: Can you afford both mortgages under the lender's assessment, including the possibility that your home takes longer to sell? - Interest and fees: What rate applies to the bridging portion, are payments interest-only, and are there establishment or valuation fees? - Sale price assumptions: What happens if your existing home sells for less than expected? - Loan structure: Can you transfer your existing mortgage, preserve a favourable fixed rate, or avoid unnecessary early repayment costs? - Exit plan: What is the repayment deadline, and what happens if your home hasn't sold by then? BNZ specifically highlights the need for a realistic sale appraisal and a backup plan. Government guidance also warns that bridging finance can mean paying for two home loans simultaneously. [How bridging finance works](https://www.bnz.co.nz/personal-banking/life-moments/how-bridging-finance-works)[Thinking about your finances when selling](https://www.settled.govt.nz/selling-a-home/thinking-of-selling/thinking-about-your-finances-when-selling/) ## My suggested next step Start with your current bank and one independent mortgage adviser, then use the other banks above as comparisons. Ask for a written estimate of the temporary peak debt, monthly repayments and the costs if the sale is delayed. To narrow this down to the most relevant options for your situation, roughly how much equity do you have in your current home, and have you listed it for sale yet? An approximate figure or range is fine. --- ## gemini Answer ID: 10ae1cf7-eedd-41e5-af0f-e1ddfbbc72d2 When you are looking to buy a new home before selling your current one in New Zealand, you will typically need a specialized arrangement known as a **bridging loan** (or "tideover" finance). This allows you to borrow funds to purchase the new property while your existing home is marketed and sold. Because bridging finance involves carrying temporary dual debt, major retail banks and specialist lenders approach these applications carefully. --- ### Major New Zealand Lenders for Bridging Finance Most of the major retail banks in New Zealand offer bridging finance options for owner-occupiers, though their specific terms, interest loadings, and approval criteria vary: * **ANZ:** Offers short-term, interest-only bridging arrangements (sometimes referred to as tideover loans) to help cover the gap between purchase and sale settlement dates. * **ASB & Westpac:** Both major lenders provide structured bridging finance options, typically requiring a formal valuation of your current home and a clear, realistic exit strategy (the sale of your house). * **BNZ:** Offers bridging solutions for up to a 12-month period, structuring the transition so you can manage your current mortgage alongside interest-only payments for the new property. * **Kiwibank & TSB:** Frequently feature transparent bridging loan policies where rates are typically set slightly higher than standard variable rates (often around 1% p.a. above standard floating rates) during the bridging period. ### Alternative & Specialist Lenders If your situation is complex—such as needing rapid approval, having a tight settlement window, or facing tighter serviceability calculations from major banks—non-bank and specialist lenders (e.g., **First Mortgage Trust** or **Xceda**) also offer short-term property bridging and mortgage solutions, though usually at higher interest rates and fees. --- ### Key Factors Lenders Will Evaluate Before approving a bridging loan, New Zealand lenders will closely scrutinize: 1. **Your Equity:** Lenders will evaluate the total equity across both properties. Depending on market conditions and the lender's risk appetite, they generally require you to have substantial equity (often targeting a combined Loan-to-Value Ratio or LVR threshold). 2. **Servicing Capacity:** Under the Credit Contracts and Consumer Finance Act (CCCFA), lenders must test whether you can temporarily afford the "double mortgage" payments (your full existing mortgage plus interest-only payments on the new loan) if your house takes longer to sell than expected. 3. **Your Exit Strategy:** You will need to provide recent real estate appraisals, a marketing plan, and evidence that your current home is priced realistically for the local market. ### Strategic Considerations * **Closed vs. Open Bridging:** A **closed** bridging loan is used when you already have an unconditional sale and purchase agreement on your current home with aligned settlement dates (lower risk). An **open** bridging loan is used when you buy the new home *before* your old home is even listed or sold (higher risk, stricter criteria, and typically limited to a 6-month window). * **Using a Mortgage Broker:** Because policies and risk appetites shift frequently among New Zealand lenders, working with an independent mortgage adviser can help you compare which major bank or lender will offer the most favorable serviceability rules and pricing for your specific equity position. --- ## ai-mode Answer ID: 11d8b7fb-e5d2-4931-8084-5407ec0d7627 To buy your next home before selling your current one, you will need what is known as **bridging finance**. This is a short-term lending arrangement (usually up to 6 to 12 months) where the lender uses equity in both properties to cover the gap. In New Zealand, most major retail banks and select non-bank/broker networks offer bridging finance options, though the specific criteria, pricing, and transparency vary. Major New Zealand Banks * * **ANZ:** Offers standard bridging loan structures where they take security over both properties while you transition, subject to equity and serviceability assessments. * **ASB:** Provides bridging finance options with interest-only payment structures, alongside tools to help evaluate your existing equity and structural options like substituting security to avoid fixed-term break fees. * **BNZ:** Offers bridging solutions if you meet their equity thresholds and can demonstrate a clear plan to service and repay the peak debt when your current house sells. * **Kiwibank:** Generally transparent with their pricing structure, often charging a modest margin (around 1 % p.a.) above their standard floating rates for the bridging period. [MoneyHub NZ] * **Westpac:** Provides bridging finance support, evaluating the combined loan-to-value ratio (LVR) of both properties. * **TSB:** Known for clear, competitive terms on short-term bridging configurations relative to standard variable rates. [MoneyHub NZ] * Mortgage Brokers & Non-Bank Lenders * * **Financial Advisers / Brokers (e.g., Loan Market, Squirrel):** Because bridging policies, capitalization of interest, and equity requirements (typically requiring at least 20 % to 30 % overall equity) vary significantly between banks, using a mortgage broker gives you access to a wide panel of lenders to negotiate the best terms. * **Non-Bank Lenders (e.g., Squirrel, Resimac):** Can sometimes offer more flexible or faster alternative short-term structures if traditional major banks are tight on serviceability criteria due to carrying two simultaneous loans. * If you'd like to narrow this down, let me know: * Are your current mortgage and financial accounts with one of the **major main banks** already? * Roughly what percentage of **equity** do you have built up in your current home? I can help outline what financial information you'll need to prepare for them. --- ## ai-overviews Answer ID: b4185983-d404-4093-bea5-01a7a190ecba To finance a property purchase before your current home sells in New Zealand, you will need **bridging finance**. Because you are buying before selling, you will specifically require an **open bridging loan** (where your existing home does not yet have an unconditional sale contract). Open bridging is considered high-risk by financial institutions. Lenders will strictly evaluate your **equity level** (typically requiring at least 20%), your servicing capacity to carry dual debt, and a realistic backup plan if the sale takes longer than expected. * * * Mainstream Bank Options Your first point of contact should be your **existing home loan provider**. Most major New Zealand banks offer bridging options to their existing clients, allowing you to utilize a "security transfer" or "substitution of security" to carry your current loan structure over to the new property, saving you fixed-term break fees. * **Kiwibank** : One of the few retail banks that transparently publishes its pricing structure for bridging finance. They typically charge their standard variable rate plus a **1% p.a. premium**. * **ASB** : Offers short-term home loans that structure your payments as **interest-only** during the bridging window to lower your immediate cash outlay. * **BNZ** : Provides tailored bridging terms (typically up to **6 months** for established homes). They require a registered valuation and a robust financial backup plan before approval. * **Westpac NZ** : Can increase your existing Choices Home Loan framework short-term or design an isolated interest-only bridging tier to span the gap. * * * Specialist & Non-Bank Lenders If mainstream banks decline your request due to strict debt-servicing rules or the lack of an unconditional sale contract, specialist short-term lenders are far more flexible. They prioritize the overall asset strength and your exit strategy over rigid income verification. * **ASAP Finance** : A specialist lender providing heavily customized, short-term open bridging loans. They can **capitalise interest** (adding the monthly interest to the total loan balance rather than requiring monthly out-of-pocket payments). * **Squirrel Mortgages** : Acts as both a specialized advisory service and a peer-to-peer non-bank funder, helping to construct open-ended bridging structures for borrowers with complex equity or self-employed income profiles. * **Xceda** : Provides bridge mortgage terms up to 2 years, supporting high Loan-to-Value Ratios (LVR) up to 80% with options for interest-only or fully capitalised repayments. * * * Core Cost and Risk Breakdown Feature| Closed Bridging| Open Bridging (Your Scenario) ---|---|--- **Risk Profile**| **Low:** Repayment date is legally locked in by an unconditional sale contract.| **High:** No definitive sale date or guaranteed sale price exists yet. **Pricing Setup**| Standard variable rate or mild floating premium.| High floating rate + **1% to 2% p.a. premium** \+ application fees. **Typical Term**| Up to **12 months**.| Strictly capped at **6 months** by retail banks. **Interest Type**| Interest-only payments.| Interest-only or **Capitalised Interest** (compounds into the final loan). * * * Strategic Next Steps 1. **Get an independent appraisal:** Secure a formal real estate appraisal on your current house immediately. Lenders will base your maximum borrowing amount on a conservative estimate of your house's final sale price. 2. **Review your current mortgage contract:** Check the wording around "portability" or "security substitution" with your current lender to see if you can migrate your existing interest rates. 3. **Engage a Mortgage Broker:** Because open bridging policies vary wildly between New Zealand institutions and many non-bank rates are unlisted, a registered mortgage adviser can run simultaneous scenarios across multiple lender panels to find a flexible policy fast.