Plan the timing, equity, and backup scenarios before writing an offer.
Buying a new home before selling your current one can give you more control over the move, but it also creates a timing and cash-flow challenge. The key is to understand exactly how the two properties, two mortgages, and your available equity may overlap.
Start with the sale side. Is your current home listed, conditionally sold, or still being prepared? The certainty of that sale will affect what lenders are comfortable approving. A strong down payment and an accepted sale can create more options than a plan that depends on selling later.
Some buyers may use a bridge loan for a short gap between the sale of one home and the purchase of the next. Others may use a refinance, a HELOC, or a mortgage structure that considers both properties. Each option has its own lender rules, costs, and timing requirements.
Build a conservative plan. Consider the possibility of a delayed sale, a lower sale price, higher closing costs, or temporary payments on two properties. You do not want the purchase to depend on the most optimistic version of events.
For BC and Alberta homeowners, coordination with your realtor, lender, and lawyer is important. Book a consultation before writing an offer so the financing plan supports the timeline.
