Updated September 2026
If you're moving up, downsizing or relocating, you face the same question: do you buy your next home first, or sell the one you're in? Both can work. The right choice depends on your finances, the market and how much risk you're comfortable with. Here is how each approach works in Ontario.
Buying first: the advantages
No rush. You can take your time and buy the right home instead of the first one available.
One move. You go straight from one home to the next, without renting in between or storing your things.
An easier sale. Once you've moved out, your current home can be cleaned, repaired and staged without you living around showings.
Buying first: the risks
Two homes at once. Until your current home sells, you may carry two mortgages, two sets of property taxes and two sets of utilities.
Pressure to sell. If your home takes longer to sell than planned, you may feel pushed to accept a lower price.
Qualifying can be harder. A lender has to be satisfied that you can carry the new mortgage, and possibly both, until your sale closes.
How bridge financing works
Bridge financing is a short-term loan that lets you use the equity in your current home toward the down payment on your new one, when your purchase closes before your sale. Lenders usually require a firm sale agreement on your current home first. Terms vary: TD describes bridge financing as typically covering up to 90 days, while RBC says its terms can run from 90 days to 12 months or longer. Rates are usually higher than a regular mortgage, and the loan is repaid from your sale proceeds.
Bridge financing covers a gap between two firm deals. It doesn't help if your current home hasn't sold yet.
Other ways to buy first
Make your offer conditional on selling your home. Some sellers will accept this, often with an escape clause that lets them keep marketing and gives you a set time to remove the condition if another offer arrives. Our guide to responding to offers explains how escape clauses work.
Negotiate a long closing on your purchase to give yourself time to sell.
Buy new construction. A closing date months or years away gives you time to sell, but plan for delays. See our guide to buying new construction.
Selling first
Selling first gives you certainty: you know exactly what you have to spend. The risk is finding yourself without a home you want to buy. You can reduce that risk by negotiating a longer closing date on your sale, or by asking the buyer if you can rent the home back for a short time.
How to decide
Find out what your current home is likely to sell for. A comparative market analysis gives you a realistic number.
Work out what you'll walk away with after selling costs and your mortgage payout.
Talk to your lender about bridge financing and what you qualify for, before you shop.
Think about the market. When homes are selling quickly, buying first carries less risk. When they're taking longer, selling first is safer.
Talk to us
As a father-son team, we can handle both sides of your move: selling your current home and finding the next one. Call us at (905) 830-9111 and we'll help you plan the timing.
