Selling your current home while buying a new one can feel like a juggling act – with a lot of moving parts, financial considerations and timing decisions involved. But with the right strategy and guidance, the process can be far more manageable than you may expect. Your mortgage agent will help you understand what to consider, how to prepare and the best way to position yourself so the transition is as smooth and financially sound as possible.
Start with timing – it matters more than you think One of the biggest decisions you’ll face is whether to sell first or buy first. Selling first gives you clarity: you know exactly how much money you’ll walk away with, which can make budgeting for your next purchase much easier. The downside? You may feel pressure to find your next home quickly or arrange temporary accommodations.
Buying first, on the other hand, offers peace of mind. You secure your next home without rushing. But it may require stronger financial footing, especially if there’s overlap between mortgages. Market conditions, your financial comfort level and your appetite for risk all play major roles in what’s right for you.
Consider your current mortgage – porting could save you money If you have a great rate on your existing mortgage, you may not have to give it up. Many lenders offer mortgage portability, which allows you to transfer your current rate and terms to your new home. This can be a smart move in a higher-rate environment or if breaking your mortgage would trigger a hefty penalty.
But portability isn’t automatic. Every lender has specific rules regarding timelines, qualification and how long the process remains valid. Knowing these details early can save you from surprises later.
If closing dates don’t line up, bridge financing can help
Perfectly aligned closing dates are ideal, but they’re not always realistic. Bridge financing fills the gap by giving you temporary access to the equity in your current home so you can make the down payment on your new one before your sale closes.
A bridge loan is designed to be short-term and, when used correctly, it can relieve a lot of pressure during a busy transition. Understanding the cost, qualification requirements and timeline is key – and something your mortgage agent will walk you through step by step.
At the end of the day, every move is unique. Your finances, goals and tolerance for timing gaps all help shape your best strategy.
Planning to sell and buy simultaneously? Answers to all your questions are a call or email away