Buy first
or sell first?
There is no universal right order. The safer fit depends on your signed agreements, financing, sale and purchase properties, closing dates, occupancy needs and tolerance for uncertainty. Compare both paths with your mortgage broker or lender, lawyer and Realtor before you sign.
Selling first.
The upside: your sale result can give you a clearer planning number before you commit to the next purchase.
The downside: you may sell before you secure the next property. Temporary housing, storage, two moves or an occupancy arrangement may need to be considered. Your lawyer must draft or review any occupancy arrangement and explain the legal risk before you agree to it.
It may fit when: certainty about sale proceeds matters most, subject to the terms of both agreements and your lender's advice.
Buying first.
The upside: you can make an offer on the next property before your current home is sold. Whether that reduces risk depends on your financing, conditions, closing dates and backup plan.
The downside: your current home may sell later, for a different amount or on different terms than planned. Ask your mortgage broker or lender to test what you can carry and what happens if a sale or closing changes.
It may fit when: your lender confirms the carrying plan and you understand what happens if your current home takes longer or sells for less than expected.
Bridge financing: check every term.
Bridge financing is a type of short-term financing that may be available when a purchase closing and sale closing do not line up. Availability, required agreements or equity, maximum term, rate, fees and conditions vary by lender and borrower. It does not solve every timing problem.
Have your mortgage broker or lender put the complete terms and fallback plan in writing before you rely on them. Have your lawyer review the closing documents and any proposed occupancy arrangement, then explain the legal obligations before you agree.
How to actually decide.
Run it through four questions:
- What has your lender confirmed in writing? Ask about qualification, required equity or sale, carrying costs, bridge limits, rates and fees.
- What if the timing changes? Test a slower sale, a lower sale price and a delayed closing before you sign.
- How specific is your next-home search? Compare the homes that are actually available and how long you are willing to wait. Search difficulty is one input, not a command to buy first or sell first.
- What's your stress tolerance? Be honest. The "right" financial move isn't worth it if it wrecks your year.
Primary sources: Financial Consumer Agency of Canada mortgage pre-approval guidance and its home-buying cost guide. Your own mortgage broker or lender and lawyer must confirm your terms.
Frequently Asked Questions
Move-up move on your mind?
Let's map both paths, the questions each creates and the backup plan if a date or result changes. Your mortgage broker or lender confirms financing, and your lawyer handles closing and any occupancy agreement.
Talk to Scottie →