In a balanced or buyer's market, which is where Durham Region sits now, sell first. You will know your exact proceeds, you can negotiate a longer closing to give yourself time to buy, and you avoid carrying two mortgages if your current home takes longer to sell than expected. Buy first only when you have the financing capacity to own both homes for several months and the specific property is worth that risk.
The right answer changes with the market. In 2021, buying first was almost mandatory because homes sold in days and buyers could not win with a sale condition. In a market where listings are taking a month and sellers are accepting conditions again, the calculus flips.
The two paths, side by side
Consideration | Buy first, then sell | Sell first, then buy |
|---|---|---|
Certainty of proceeds | Unknown until your home sells; you are guessing at your down payment | Known; you shop with a firm budget |
Financing | Must qualify to carry both mortgages, or secure bridge financing, which requires a firm sale agreement | Standard pre-approval; no bridge needed |
Negotiating position as a buyer | Strong, no sale condition attached | Weaker if you need a sale-of-property condition; strong if you have already sold firm |
Negotiating position as a seller | Weaker; you are under time pressure and buyers can sense it | Strong; you can hold out for the right offer |
Risk of owning two homes | Real, and the cost is two mortgages, two sets of taxes and utilities, plus the stress of a price reduction | None |
Risk of being without a home | None | Real, managed with a long closing, a rent-back or short-term rental |
Moving logistics | One move, often with overlap | May require a double move or storage if closings do not line up |
Best when | Inventory is tight, homes sell fast, you have strong financing and a specific property in view | Inventory is ample, homes take weeks to sell, you want certainty on numbers |
How bridge financing works in Ontario
Bridge financing covers the gap when your purchase closes before your sale. Lenders require a firm, unconditional sale agreement on your current home before they will provide it. The bridge is typically limited to 30 to 90 days, carries a rate of prime plus 2 to 4 percent, and comes with a setup fee of a few hundred dollars. It is a useful tool for lining up closings a few weeks apart. It is not a tool for buying before you have sold, because without a firm sale there is no bridge.
If you want to buy before selling and do not have a firm sale, you must qualify to carry both properties on your own income, or arrange a HELOC on the current home before it is listed, since lenders will not open a new HELOC on a home that is already for sale.
The extended closing: the tool most people underuse
When you sell first, negotiate a closing date 90 to 120 days out rather than the standard 60. In a slower market, buyers often accept this, and it gives you two to three months to find and close on your next home. Combine that with a purchase that closes a week or two before your sale, and bridge financing covers the overlap. You get one move, known proceeds and no exposure to carrying two homes indefinitely.
A rent-back or leaseback is the other option: you sell, close, and rent your former home from the new owner for a defined period. This works well with investor buyers and end-users who are flexible on possession, and it should be documented with a proper lease and insurance arrangements.
The sale-of-property condition
Making your purchase conditional on selling your current home is the lowest-risk path, but it is the weakest offer. In a balanced market, sellers accept it more readily than they did in 2021 and 2022, usually with an escape clause that lets them continue to market the home and give you 24 to 72 hours to firm up if another offer arrives. If you use this condition, list your current home at a price that will sell within the condition window, not at a price you hope for.
A sequence that works in today's Durham market
- Get a current valuation of your home and a pre-approval that reflects the realistic sale price, not the hoped-for one.
- Set up a HELOC on the current home before listing, if you want the option to buy first.
- List, and negotiate for the longest closing the buyer will accept.
- Shop with a firm budget once your sale is firm. Offer without a sale condition.
- Close the purchase a week or two before the sale, bridged, so you move once.
Frequently asked questions
Can I get a mortgage on a new home before selling my current one? Only if you qualify to carry both mortgages on your income, or if you have a firm sale and use bridge financing for the overlap. Most households cannot carry two mortgages at today's prices.
How long can a bridge loan be in Ontario? Typically 30 to 90 days, with some lenders going to 120. It requires a firm sale agreement on your current home.
What happens if my house does not sell before my purchase closes? Without bridge financing or the ability to carry both, you risk defaulting on the purchase, which can mean losing your deposit and being sued for the seller's losses. That is why selling first is the safer sequence in a slower market.
This article is general information, not personal advice. Bridge financing terms vary by lender; confirm availability and conditions before relying on it.