David321:concordnz: Yes, this is regularly done,
The banks provide what is called "bridging finance"
(and you pay this off when your original house is sold)
If I recall correctly - you only pay the 'interest' on the bridging finance, not the capital repayment.
Id also recommend talking to a Mortgage broker.
They are free & know which banks are best for your particular situation and location.
I've used a couple of good ones at Mike Pero Mortgages.
I have just looked into the Bridging finance after reading your reply its still on the Kiwi Bank website so hopefully its still an option! Looks ideal from the very little I know about it so far. Would it be correct to assume if our current house was worth $550,000 and the one we want is $750,000 we would pay interest on the $200,000 difference or the whole $750,000 total?
So we pay just the interest on the loan and then proper payments start once our house is sold? do they give a time limit to sell your house or any other conditions like that?
You pay interest on the full 750k,
Other conditions vary between banks, which is why I recommend a Mortgage Broker. (they know which banks are currently running with which conditions)