How Much Will I Have Left After Selling My House? (And What Can You Buy Next?)
A quick heads-up before we dive in: This article is strictly for general informational purposes and does not constitute financial, legal, or tax advice. Every situation is entirely unique, and bank lending policies change frequently. Before making any decisions about your property journey, it is highly recommended that you seek independent advice from a qualified financial adviser.
There is a dangerous illusion that occurs when you sell a house. You sign a contract for $900,000, and for a brief moment, you feel like you have almost a million dollars.
But as any experienced homeowner knows, the headline sale price is rarely what actually lands in your bank account on settlement day. Before you start shopping for your next dream home, you need to strip away the illusion and calculate your Net Proceeds—the actual, usable cash you will walk away with once everyone else has taken their cut.
Here is a breakdown of the hidden costs that eat into your sale price, an interactive calculator to figure out your exact net cash, and exactly what that money translates to when buying your next house.
The Often Missed Costs of Selling a House
When the property settles, the buyer's money goes directly to your solicitor. Before your solicitor transfers the remainder to your personal account, they must legally pay off a strict hierarchy of debts and invoices.
Here is exactly what gets deducted:
1. The Bank's Cut (Your Mortgage)
The bank holds the title to your house. They will not release it to the new owner until your current mortgage is cleared in full. Your solicitor will deduct the exact balance of your loan on settlement day.
The Break Fee & Clawback Trap: If your mortgage is currently on a fixed rate, clearing it early can trigger an Early Repayment Adjustment (break fee). Furthermore, if you received a cash-back incentive from the bank when you originally bought the house, and you are selling within 3 to 4 years, the bank will often claw back a percentage of that cash. You must ask your bank for a settlement quote before you list the property.
2. The Agent's Commission & Marketing
Real estate agents do not wait for you to pay an invoice; their commission is deducted automatically from the deposit the buyer pays when the contract goes unconditional.
The GST Catch: When agents quote you a "3% fee" or a marketing budget, this figure can exclude GST. In New Zealand, GST is 15%. That turns a $25,000 commission into a $28,750 commission. Make sure you account for the tax.
3. Legal and Compliance Fees
Your solicitor isn't working for free. Expect to pay between $1,200 and $2,000 for the legal conveyancing required to discharge your mortgage and transfer the title. Additionally, if you have any unpaid local council rates or water bills, your solicitor will deduct these automatically to provide the buyer with a "clean" title. Note as well that you will also have purchasing fees on your next home.
4. Preparation & Moving Costs
These are the out-of-pocket expenses that chip away at your net cash before and after the sale. Did you pay $2,500 to have the house professionally staged? Did you spend $1,500 on painters to touch up the skirting boards? You also need to budget for the actual moving company to physically transport your life to the next house.
5. The Bright-Line Tax Trap (If it was ever a rental)
If the property you are selling was ever rented out by you, or if it wasn't your main home for the entire time you owned it, and you fall within the Bright Line period (2 years at time of writing), you might be caught by the Bright-Line property rule. If this applies, you could owe income tax on any capital gain you make from the sale. (Note: I am a mortgage adviser, not an accountant. Always consult a qualified tax professional before listing a property that has been used as a rental to see if you will be liable for tax).
Interactive Tool: The Net Proceeds & Purchasing Power Calculator
Use the tool below to input your expected sale price and selling costs. The calculator will run the cash flow waterfall, deduct the GST automatically based on your toggles, and show you exactly how much cash you'll actually get in hand.
Once you see your Net Cash, enter any extra savings you plan to use and click Calculate Budgets to instantly see the maximum purchase price you can afford on your next house.
Your Next House Budget
Combine your net cash with any extra savings to see what you can afford.
For your next home, some banks may allow you to use less than a 20% deposit, but note that extra rates and fees could apply.
A 20% deposit is the ideal standard banks are looking for regarding an owner-occupied home, and this can open up the most options and best deals on the market.
A 30% deposit is what you will currently need to use this cash for an existing investment property.
Understanding Your Next House Budget
Once you know your net proceeds, the immediate next question is: "What can I afford to buy next?" The calculator above gives you four different maximum budgets based on the deposit percentage you use. When looking at those numbers, keep these three lending rules in mind:
Less than 20% Deposit: For your next home, some banks may allow you to use less than a 20% deposit, but note that extra rates and fees could apply (such as a Low Equity Margin added to your interest rate).
The 20% Deposit: A 20% deposit is the ideal standard banks are looking for regarding an owner-occupied home, and this can open up the most options and best deals on the market.
The 30% Deposit: A 30% deposit is what you will currently need in order to use this cash for an existing investment property.
Let's Run Your Real Numbers
Do not start shopping for your next home based on a guess. Before you sign an agency agreement to sell, we need to ensure the maths actually works for your next purchase.
At Home Loan Factory, we can pull your exact mortgage discharge figures, estimate your break fees, calculate your precise net proceeds, and get your next home loan pre-approved before you even put a "For Sale" sign in the ground.
Book a Free Next-Home Strategy Session with Home Loan Factory
