If your home seems to get a little smaller every year, you’re not alone. A new baby, a busy toddler or teenagers who need their own space can turn the move to a bigger home from a nice idea into a critical need. Brisbane’s market has shifted in ways that can work in an upgrader’s favour, but interest rates have moved too. Here’s what that means for your next move, and how to approach it with confidence. 

Brisbane dwelling values fell 1.5% in September 2026 and now sit around 5.4% below their May peak, according to Cotality, while total listings are more than 50% higher than a year ago. For upgraders, falling prices usually shrink the dollar gap between your current home and a larger one, and more stock means more choice and more room to negotiate. At the same time, the Reserve Bank lifted the cash rate to 4.60% on 29 September 2026, which reduces how much lenders will let you borrow. A successful upgrade comes down to three things: understanding your price gap, choosing whether to buy or sell first, and knowing your true borrowing capacity. 

Is now a good time to upgrade in Brisbane? 

I recently sat down with a couple who have lived in their three-bedroom townhouse for four years. With their third child on the way, they knew those three bedrooms were about to feel very full, but with rates rising they’d assumed they would need to stay put a little longer. Once we ran the numbers, the picture looked a lot more positive. Their townhouse had grown in value over those four years, giving them plenty of equity to put towards their next home, and the softer market meant the more spacious homes on their wish list were more within reach than they had been earlier in the year. By the end of our meeting, the conversation had shifted from “can we do this?” to “what kind of home do we want?” That’s often the case for upgraders: you may be in a stronger position than you think. 

Upgraders are in a unique position because you’re both a seller and a buyer in the same market. When prices fall, the home you’re selling is worth less, but so is the home you’re buying. Because your next home is usually the more expensive of the two, the saving on the purchase is often bigger than the loss on the sale. 

Here’s a simple example. A family owns a home worth $1,000,000 and wants a $1,400,000 home with an extra bedroom and a bigger yard. The gap is $400,000. If both properties fall by 5%, the current home is worth $950,000 and the next one $1,330,000. The gap is now $380,000, so the family needs $20,000 less to make the move, and they’ll pay less transfer duty on the lower purchase price as well. 

There’s also more to choose from. Homes are taking longer to sell, with Cotality recording a median of 28 days on market by mid-2026, compared with 19 days a year earlier. That gives buyers time to compare options, negotiate on price and ask for helpful conditions, such as a longer settlement. 

Should I buy first or sell first? 

This is the question every upgrading family wrestles with. In a rising market, buying first can make sense because your current home is likely to sell for more later. In a softer market, it’s harder to predict what your home will fetch, so many families prefer to sell first, or at least have their sale well underway. Your options include: 

• Selling first and negotiating a longer settlement or a short rent-back, giving you time to find the right home. 
• Buying first with an extended settlement, so your sale can happen before you need the funds. 
• Making an offer subject to the sale of your home, which vendors are more open to when homes are sitting longer. 
• Using bridging finance, where a lender funds the new purchase before your current home sells. 

Bridging loans typically give you six to twelve months to sell, and interest is often added to the loan rather than paid monthly. Lenders generally cap your total “peak debt” at around 80% of the combined value of both properties. Before you commit, decide the lowest price you’d accept for your current home, and check that the numbers still work at that price. 

How much can I borrow for a bigger home with higher rates? 

Each rate rise reduces borrowing capacity, because lenders assess your repayments at your actual rate plus a serviceability buffer, typically around three percentage points. A growing family also brings new costs, such as childcare, school fees or a second car, and lenders will factor these in. 

The good news is that the equity in your current home counts towards your deposit. If one partner is on parental leave, many lenders will assess your application on their return-to-work income, provided you have a letter from their employer confirming the return date and salary, plus evidence you can cover repayments in the meantime. Lender policies vary widely, so getting pre-approval before you list or make offers is the smartest first step. 

Upgrading is about more than numbers. It’s about giving your family the space to grow, without stretching yourselves further than you feel comfortable. Every family’s timing, income and goals are different, and the right strategy depends on your situation.

Over more than 20 years in banking and lending across Australia, the UK, Europe and the Pacific, I’ve helped many families make the move from their first home to the one they’ll grow into. I’ve worked through every kind of upgrade, from straightforward sell-and-buy moves to bridging loans, tight settlement timelines and applications where one partner is on parental leave. What I enjoy most is seeing a family settle into a home that finally fits. If you’re starting to think about your next home, get in touch with PierPoint via the form below and we’ll sit down together, run through your numbers and map out a plan that gives you clarity and confidence before you make your move.

Frequently Asked Questions

Is it better to upgrade when house prices are falling? 

It can be. When prices fall evenly, the dollar gap between a cheaper home and a more expensive one usually narrows, so upgraders often need to borrow less to make the move. You’ll also pay less transfer duty on a lower purchase price. The trade-off is that higher interest rates may reduce how much you can borrow, so it’s important to check both sides of the equation. 

What is a bridging loan and how does it work? 

A bridging loan is short-term finance that lets you buy your next home before your current one sells. The lender holds both properties as security, usually gives you six to twelve months to sell, and often adds the interest to the loan. Once your home sells, the proceeds reduce the debt to a standard home loan on your new property. 

Can I get a home loan while I’m on parental leave? 

Yes, many Australian lenders will approve a home loan during parental leave. They usually assess your return-to-work income if you provide a letter from your employer confirming your return date, role and salary, along with savings or other income to cover repayments until you return. Policies differ between lenders, so a broker can help you find the right fit. 

How do I work out how much equity I have for an upgrade? 

Start with a realistic market appraisal of your home, then subtract your outstanding loan balance and expected selling costs, such as agent fees and marketing. The result is your available equity. Most lenders will let you borrow up to 80% of a property’s value without lenders mortgage insurance, which determines how much of that equity you can use. 

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