Move-up buyers
Sell first or buy first? Here is how to decide.
Most move-up buyers in BC sell first, because a firm sale tells you exactly how much equity you have and makes your next offer stronger. Buying first works when you can carry two homes for a while or use bridge financing. Elena plans both sides so you move once.
Sell first
Good when you need the sale proceeds for your down payment, or the market favours buyers and homes take time to sell.
Risk: you may need a short-term rental or a long completion date if you have not found the next home.
How Elena manages it: a longer completion date on your sale, so you have time to buy with a firm number in hand.
Buy first
Good when the home you want is rare, or you can afford to carry two mortgages for a few months.
Risk: your sale may take longer or bring less than planned, and bridge loans have interest and fees.
How Elena manages it: a subject-to-sale offer where sellers will accept one, or bridge financing arranged with your lender before you offer.
What is bridge financing?
Bridge financing is a short-term loan that covers the gap between the completion date of your purchase and the completion date of your sale. Lenders usually require a firm sale of your current home before approving it, charge interest for the days you use it plus a setup fee, and lend for a limited number of days. Your lender confirms the exact terms.
What is a subject-to-sale offer?
An offer that is conditional on selling your current home by a set date. Sellers accept them less readily in a busy market and often include a clause allowing them to keep showing the home and give you a short notice period to remove your condition if another offer arrives. Elena advises when it is realistic and how to make it attractive.
Can I take my current mortgage with me?
Many lenders allow you to port a mortgage to a new home, keeping your rate and avoiding a payout penalty, sometimes with a blended rate for extra borrowing. If you cannot port, breaking a fixed-rate mortgage can mean a significant penalty. Ask your lender for the penalty in writing before you plan dates.
Will I owe tax when I sell?
Selling your principal residence is generally exempt from capital gains tax in Canada, but you must report the sale on your tax return. A property that was rented or was not your principal residence for part of the time you owned it can be taxable. Confirm with your accountant.
Can Elena sell my home and find the next one?
Yes, and it is usually simpler: one person plans both timelines, aligns completion dates and knows what your sale is really worth when writing your purchase offer.
Questions people ask
How much equity do I have for my next home?
Roughly, your estimated sale price minus the mortgage balance, selling costs and any payout penalty. Elena provides a written valuation and your lender confirms the balance and penalty, so you plan with real numbers.
Can I buy and sell on the same day?
Yes, and many people do. Your lawyer or notary completes the sale first and uses the proceeds for the purchase. Possession is often set a day or two after completion to allow moving time.
What if my sale falls through after I bought?
Bridge financing or a longer completion on your purchase gives breathing room. Elena builds the dates with a buffer and only recommends buying first when your finances can carry the risk.
Thinking about your next move?
A call to plan both sides, so you move once.