How to Buy a Second Home: A Step-by-Step Roadmap

Brisbane’s property market is on the rise, with a median house price of $800,000 in Q1 2025 and rental yields near 4.3%. With values climbing 6% over the past year and interest rates expected to tick up, acting now to buy a second home can lock in lower rates and better entry prices. 

Demand for holiday retreats and rental homes is at a decade-high, so delays mean higher costs and fiercer competition. Learning how to buy a second home helps you set a solid budget, avoid surprise fees like stamp duty or LMI, and choose the right loan structure before lending rules tighten. 

In the steps that follow, we’ll walk you through each stage of the process in clear, easy-to-follow detail to get you prepared for your second home. Let’s dive in.

Build Your Portfolio by Buying a Second Home

Whether it’s a holiday retreat or investment property, our Brisbane mortgage brokers at Kelly Brothers Finance craft the perfect second-home loan solution to match your goals. Call us at (07) 3847 9450 or visit kellybrothersfinance.com.au now and start expanding your property portfolio!

Step 1. Set your budget & goals

Before you dive into listings, nail down your numbers and purpose. A clear budget keeps you on track. It tells you what Brisbane home loan you need and what monthly repayments look like.

Decide your purchase price range

Work out the maximum you can borrow. Chat with a mortgage broker or home lending specialist to compare second home loans and interest-only loans. 

Aim for a loan-to-value ratio under 80 percent. That way you avoid Lenders’ Mortgage Insurance (LMI). Think about an offset account to shave interest off your mortgage balance.

Plan your deposit size

Target at least a 20 percent deposit. With a deposit under 20 percent you’ll pay mortgage insurance or LMI. If you’ve built equity in your first home, consider a cash-out home loan or home equity line of credit. That taps into your home equity without a second mortgage.

Choose your goal: investment or holiday retreat

If you’re chasing rental income, look for suburbs with solid rental yields and growth in the South East Queensland property market. Factor in property management fees, insurance and property taxes, and talk to a property manager about rental estimate letters. 

If you want a weekend escape, focus on lifestyle: proximity to the river, local cafes and home safety features. Either way, sketch out how this second home fits your wider property portfolio.

Step 2. Secure finance pre-approval

Getting pre-approval is your first power move when buying a second home. It tells you how much you can borrow and shows agents and sellers you’re serious.

• Meet a Mortgage Broker or Lender: Compare Brisbane home loan rates, second home loans, interest-only loans and offset account features. A broker can also explore home equity options from your first property to boost your deposit.
  
  
• Gather key docs: Payslips, bank statements, tax returns and details of any existing mortgage balance. The lender uses these to assess your serviceability and set your loan-to-value ratio (LVR).
  
  
• Aim for LVR ≤ 80%: Staying under 80 percent avoids Lenders’ Mortgage Insurance (LMI). If your deposit’s shy of 20 percent, ask about mortgage insurance costs up front.
  
  
• Choose your loan structure: Decide between principal & interest or interest-only repayments. Interest-only can improve your cash flow if you’re targeting rental income from your investment property.
  
  
• Lock in your rate and limit: Once you’ve submitted everything, the lender issues a formal borrowing limit letter. That document becomes your budget cap and a badge of credibility when you make an offer.

Securing pre-approval for your second home speeds up your purchase and gives you confidence at auction or private treaty. Don’t start house-hunting until you have it in hand.

Step 3. Engage your team

Buying a second home means more than just ticking boxes. You need trusted experts to handle the legal, financial and property-management tasks.

• Conveyancer or property lawyer: They review and negotiate the contract, conduct title and zoning searches, calculate stamp duty and land-tax adjustments, and prepare settlement statements. They liaise with Title Queensland to lodge transfer duty and register the title in your name.
  
  
• Buyer’s agent (optional): Perfect if you lack time or local intel. They scout off-market listings, advise on suburbs, benchmark market value and negotiate on your behalf.
  
  
• Property manager: For an investment property, they organise rental income appraisals, tenant screening, inspections and maintenance using dedicated property management software. They ensure rental income flows and overheads are managed.
  
  
• Keep your broker in the loop: Your mortgage broker finalises any remaining finance conditions, updates valuation reports if needed and ensures all loan documents are ready for settlement.

By assembling a professional team, you’ll minimise risks, streamline each step from contract exchange to settlement and focus on securing your perfect second home.

Unlock Your Second Home Dreams

Ready to buy a second home in Brisbane? Our Brisbane mortgage brokers at Kelly Brothers Finance will tailor your loan, structure your deposit and secure pre-approval fast, so you can move from browsing to buying with confidence. Call us on (07) 3847 9450 or visit kellybrothersfinance.com.au today!

Step 4. Check special approvals

Buying a second home in Brisbane means ticking a couple of extra legal boxes before you sign on the dotted line.

• Foreign buyers: You must secure FIRB approval first. Budget for an 8 % Foreign Acquirer Duty (AFAD) on the purchase price and have it paid before exchange.
  
  
• All buyers: Unlike first-home buyers, there’s zero stamp-duty or land-tax relief on a second property. You’ll pay full transfer duty and ongoing land tax, so factor these into your budget and borrowing limit.
  
  

Chat with your conveyancer and mortgage broker to pin down exact figures and avoid surprises on settlement day.

Step 5. Search & shortlist

Now that pre-approval and approvals are locked in, it’s time to zero in on properties.

• Use portals, agents and open homes - browse Domain, Realestate.com.au or CoreLogic for suburbs matching your criteria.
  
  
• Register with local agents to get off-market and coming-soon alerts.
  
  
• Attend open homes to gauge neighbourhood vibe, home safety and maintenance needs.
  
  
• Focus on suburbs that meet your lifestyle or rental targets - if rental income is your goal, look for areas with ≥4 % gross yields; for a holiday retreat, prioritise river or hilltop locales with cafés, parks and low upkeep.
  
  
• Create a shortlist of 5–7 homes and revisit them at different times (weekday vs weekend, morning vs afternoon) to spot issues like noise or traffic. A concise shortlist keeps your search efficient and your offers sharp.

Step 6. Make Your Offer

When you’re ready to make your offer, you’ll choose between private treaty or auction, each with its own rules. 

For private treaty sales, lodge a written offer through your agent, provide a 5–10 % deposit into the vendor’s trust account and enjoy a five-business-day cooling-off period (you can withdraw by paying roughly 0.25 % of the purchase price). 

For auctions, register beforehand with your ID and pre-approval letter, then bid live on the day; there’s no cooling-off, and you’ll typically pay a 10 % deposit immediately if you’re successful. Fast, well-prepared offers stand out when buying your second home.

Step 7. Finalise finance & sign

After your offer is accepted, you’ll work with your mortgage broker to satisfy any lender conditions, like updated payslips or valuation reports, and meet your conveyancer to sign the loan agreement, mortgage documents and pay your deposit at exchange. 

Your broker then confirms the final loan instructions while your conveyancer readies title searches and organises stamp duty and fees. On settlement day, balance funds, duty and fees are paid, title registers in your name, and you get the keys! 

That’s when your second home officially becomes yours.

Seamless Settlement for Your Second Home Purchase
From satisfying lender conditions to signing documents and paying duties, our Brisbane mortgage brokers handle every step, so settlement day for your second home is smooth. Call Kelly Brothers Finance at (07) 3847 9450 or explore kellybrothersfinance.com.au and let us streamline your journey!

Frequently Asked Questions (FAQs)

How much of a deposit do I need to buy a second house?

Lenders generally expect at least a 20% deposit when buying a second home to keep your loan-to-value ratio under 80% and avoid Lenders’ Mortgage Insurance (LMI). You can go lower (often from 5–10%), but you’ll pay LMI or mortgage insurance on the gap.

How much equity should you have before buying a second home?

Aim to have at least 20% equity in your existing property so you can tap it via a cash-out home loan or HELOC—this covers your deposit and keeps your second home loan LVR under 80%. Having extra equity also helps cover stamp duty, fees and any unexpected costs.

How to buy a second home without selling the first in Australia?

You can refinance your first home to release equity (through a cash-out loan or home equity line of credit) and use that as your deposit on the second property. Your mortgage broker can structure both loans to ensure you meet serviceability tests and avoid bridging finance where possible.

Where is the best place to invest in Brisbane under $500,000?

For an entry-level budget, look at units or townhouses in growth corridors like Logan, Ipswich or Redcliffe. These suburbs often offer median prices under $500K, yield around 4%+, and good rental demand, ideal if you’re buying a second home as an investment property.

What is the downside to a second mortgage?

A second mortgage increases your total debt and monthly repayments, can carry higher interest rates, and ranks behind your first mortgage if you default. It also ties up equity in your first home, reducing financial flexibility when buying your second home.

What is the second home buyers grant in Australia?

Unlike first-home buyers, there is no national “second home buyers grant” or stamp-duty concession for buying a second home. All buyers of a second property pay full transfer duty (stamp duty) and ongoing land tax with no special state grants.

Conclusion

Buying a second home in Greater Brisbane is one of the most exciting chapters in your property journey. 

At Kelly Brothers Finance, our Brisbane–based mortgage brokers guide you through deposit planning, home equity options and loan structuring, whether it’s for a holiday retreat or an income-earning investment. We compare rates, help you avoid LMI and lock in your pre-approval, so you can focus on finding the perfect address. 

Ready to make your move? Get a free consultation today by calling (07) 3847 9450 or visiting kellybrothersfinance.com.au.