Why This Decision Matters
Moving into a bigger home can solve real problems: an extra bedroom for a growing family, a dedicated home office, more storage, a larger section, or simply a layout that better suits the way your household lives. But upsizing isn’t just about qualifying for a bigger mortgage. The real question is whether the full cost will still feel comfortable long after you’ve unpacked.
Many buyers focus on the purchase price or their weekly or fortnightly mortgage repayments, only to discover that the ongoing costs of owning a larger property add up quickly. Council rates, insurance, power bills, maintenance, and everyday running costs all become part of the picture.
Winter can be a practical time to inspect homes because cooler weather often reveals how well a property retains heat, whether it’s well insulated, where draughts are coming from, and how much natural light it receives. But regardless of the season, a smart upsizing plan looks beyond the asking price and asks: What will this home cost to buy, move into, maintain, and comfortably live in for years to come?
Start With the Payments You’ll Actually Live With
A larger home usually means a larger mortgage, but your home loan repayment is only one part of your ongoing housing costs.
A realistic household budget should include:
- Mortgage repayments
- Council rates
- House and contents insurance
- Body corporate fees (if applicable)
- Power, gas and internet
- Ongoing maintenance and repairs
While banks assess your borrowing capacity using interest rate stress tests, it’s equally important to make sure your own budget leaves room for life’s unexpected expenses.
It’s also worth remembering that interest rates can change over the life of a floating-rate mortgage. Even if repayments are manageable today, it’s sensible to consider whether they’d still fit your budget if rates or household expenses increased.
If you’re buying an apartment, townhouse or unit with a body corporate, don’t overlook body corporate levies. These regular fees help maintain shared areas and facilities and can be a significant ongoing expense.
Budget for the Costs Before You Move In
The purchase price is only part of the upfront cost of buying a home.
Depending on your circumstances, you’ll also need to budget for expenses such as:
- Deposit
- Solicitor or conveyancing fees
- Building inspection
- Registered valuation (if required by your lender)
- Mortgage application or establishment fees (where applicable)
One of the biggest upfront costs for many buyers is settlement support, including legal fees and moving expenses.
Whether you’re moving across town or to another region, moving costs can vary depending on the size of your household, accessibility, storage requirements and any large or specialist items. Getting written quotes and keeping a contingency fund can help cover unexpected expenses.
Plan for Higher Costs Once You Move In
A bigger home generally costs more to run.
Heating is one of the largest household expenses during winters, and larger homes typically require more energy to stay warm. More rooms, larger living spaces and additional windows often mean higher electricity or gas bills.
A larger section can be a great lifestyle upgrade, but it often brings additional costs for:
- Water (where metered)
- Lawn care
- Garden maintenance
- Tree trimming
- Outdoor maintenance
Insurance costs may also increase. Larger homes generally cost more to rebuild, and premiums can vary depending on factors such as location, construction materials, and exposure to natural hazards including flooding, earthquakes or severe weather.
Maintenance grows alongside the home itself. More bathrooms, additional flooring, larger roofs and outdoor structures all require ongoing upkeep. Setting aside money each year for maintenance can help prevent small issues becoming costly repairs later.
Don’t Forget the Cost of Selling Your Current Home
Many upsizers are managing two properties during the transition: the one they’re buying and the one they’re selling.
Selling your existing home comes with its own costs, including:
- Real estate agent commission
- Marketing and advertising
- Solicitor or conveyancing fees
- Home staging or presentation
- Minor repairs before listing
If settlement dates don’t line up perfectly, you may also face a temporary period where you’re covering two mortgages or paying housing costs on both properties.
Some buyers use bridging finance to purchase their next home before selling their current one. While this can provide flexibility, it’s important to understand the additional interest costs and lending requirements before making that decision.
A Simple Budget Test Before You Upsize
One of the easiest ways to assess affordability is to divide the decision into three categories.
Buy
- Deposit
- Legal fees
- Building inspection
- Valuation
- Loan costs
Move
- Removalists
- Packing materials
- Storage if required
- Temporary accommodation if needed
- Essential repairs before moving in
Own
- Mortgage repayments
- Council rates
- Insurance
- Utilities
- Maintenance
Looking at the total cost of ownership—not just the mortgage—provides a much clearer picture of long-term affordability.
Before committing, ask yourself a few practical questions:
- Would our budget still work if interest rates increased?
- Could we comfortably manage higher winter power bills?
- Do we have room for unexpected repairs?
- Can we maintain the property without putting pressure on other financial goals?
For homes of very different sizes or ages, a home assessment or independent home energy assessment may also provide useful insight into likely running costs and opportunities to improve energy efficiency.
Clarity Beats Guesswork
Upsizing can be a rewarding long-term decision, whether you’re making room for a growing family, creating space to work from home, accommodating extended family, or simply improving your everyday lifestyle.
However, the true cost rarely ends with the purchase price. It includes the ongoing mortgage, insurance, council rates, maintenance, utilities, moving expenses, and the financial overlap that often comes with buying and selling at the same time.
Buyers who take the time to budget for the full picture aren’t being overly cautious—they’re giving themselves the best chance to enjoy the extra space with confidence, knowing their new home fits both their lifestyle and their long-term finances.
The information provided in this blog is for general informational purposes only and is not intended as tax, legal, or financial advice. We are not tax professionals. Readers should consult their own tax advisor or accountant for guidance specific to their circumstances.