One of the most common concerns I hear from clients is:
“How do I buy and sell at the same time without being stuck—or worse, temporarily homeless?”
Whether you're downsizing, upsizing, or simply making a lifestyle move, the idea of timing it all perfectly can be overwhelming.

But there’s a better way—and it’s working for many of my clients right now.

The Buy First, Sell Later Strategy

You're living in your current home (House #1), mortgage-free or with equity, and you’re ready for a change. But the idea of selling first, then scrambling to find your next home?
That’s risky, rushed, and often leads to regret.

This strategy flips the script—and puts you in control.

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How It Works

• Step 1: You find and buy your next home first—without having to sell your current one immediately.

• Step 2: You move in calmly and comfortably—no boxes stacked to the ceiling during showings, no pressure.

• Step 3: A short-term mortgage is secured using the combined value of both properties (your current home and the new one).

• Step 4: The mortgage covers:

  • Purchase price of your new home

  • Property transfer tax

  • 3 months of interest (no monthly payments required)

  • One-time setup fee (~2%, typically built into the financing)

• Step 5: Once you’re settled in, you prepare and sell your original home properly—clean, staged, and timed to get top value.

• Step 6: After the sale, you pay off the short-term mortgage in full. No long-term debt, no disruption.

💡 Example 1: The Downsizer

• Current Home (House #1): Worth $2.3M, mortgage-free

• Next Home (House #2): $1.8M condo or townhome

• Total Value Secured: $4.1M

• Short-Term Mortgage Covers:

  • $1.8M purchase price

  • Property transfer tax

  • 3 months of interest

  • No monthly payments

🎯 Once House #1 is sold, the mortgage is cleared. You’re now comfortably in your new home and zero pressure. It’s time to sell house #1.

💡 Example 2: The Move-Up Buyer

• Current Home (House #1): Worth $2.0M

• Next Home (House #2): $3.9M

• Total Asset Value: $5.9M

• You secure a short-term mortgage on both homes that covers the $3.9M purchase + costs.

🎯 This lets you secure the home you really want—before selling. You move in, then take your time to list and sell your current home the right way.

Why This Works (What’s In It for You)

✅ No pressure to sell and buy at the same time
✅ Avoid showings, open houses, and cleaning while living in the home
✅ No need to tap into savings—costs are included
✅ No income qualification required — ideal for retirees or people on a pension
✅ Perfect for busy lives with kids, pets, work, or travel
✅ More control over when and how you move
✅ Better results when you sell because you’ve had time to prepare

This Strategy is Ideal For:

• Seniors who want to downsize calmly without risking their routine

• Professionals or families who found the right home and don’t want to miss out

• Anyone feeling stuck because the logistics of buying and selling at once feels impossible

The key is to plan ahead—while it’s a choice, not a necessity.
Give yourself time, and give your agent the ability to guide you through the process without chaos.

If you’ve found a home you love but don’t know how to make the transition without disrupting your life, this Buy First, Sell Later strategy might be your best next step.

I’m here to walk you through the details, show you how the numbers work, and help you make a move that fits your timeline, not someone else’s.

Ready to Explore Your Options?

Let’s walk through your numbers and timeline. I’ll show you exactly how this could work in your situation—step by step.

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Serious About Moving? Here’s Why Pre-Approval Should Be Your First Move

If you’re serious about buying a home, getting pre-approved for a mortgage is not just a helpful step—it’s an essential one. Pre-approval sets the foundation for your home-buying process by giving you a clear understanding of your budget, streamlining the offer process, and showing sellers you’re ready to act. But it’s about more than just your income—lenders take a comprehensive look at your financial picture, which can make or break your approval. Let’s explore why pre-approval should be your first move as a serious buyer, the potential complexities involved, and how to navigate them.

What Is Pre-Approval, and Why Is It Essential?

Pre-approval is a lender’s initial review of your financial situation to determine how much mortgage you qualify for. This isn’t just an estimate—it’s a formal process that looks at your income, debts, credit history, and down payment. With pre-approval, you’ll know exactly how much you can spend, giving you the confidence to search for homes within your price range.

For serious buyers, pre-approval offers several key benefits:

• Clear Budgeting: Know what you can afford before you start house hunting.

• Strengthened Offers: Sellers see pre-approved buyers as serious and reliable.

• Time Savings: Eliminate guesswork and focus on homes you’re qualified to buy.

Why Income Alone Isn’t Enough

While your income is a critical piece of the puzzle, it’s far from the only factor lenders consider. Here are some of the other elements that can significantly impact your pre-approval:

1. Credit History and Score

   • A strong credit score (typically 660 or higher) shows lenders that you’re a reliable borrower.

   • Late payments, high credit utilization, or past bankruptcies can lower your approval odds, even with a high income.

2. Debt-to-Income Ratio

   • Lenders assess how much of your monthly income goes toward paying debts like car loans, student loans, or credit cards.

   • Your Gross Debt Service (GDS) ratio should stay under 39%, and your Total Debt Service (TDS) ratio under 44%.

3. Mortgage Stress Test

   • In Canada, lenders apply a stress test to ensure you can handle higher interest rates. They calculate affordability using either the benchmark rate (5.25%) or your contract rate +2%, whichever is higher.

4. Down Payment

   • The size of your down payment affects both your mortgage approval and monthly payments. Down payments start as low as 5% for an insured mortgage and 20%+ for an uninsured mortgage. In expensive markets like Vancouver, 5% is the only way to get into a market.

5. Additional Costs

   • Property taxes, closing costs, and maintenance expenses are all part of homeownership and factor into your overall affordability.

What If I Currently Own a Home?

If you already own a home, the pre-approval process can still be complex. Owning property might give you equity to leverage, but it can also come with complexities:

1. Mortgage Payout Penalties

   • If you’re breaking your current mortgage early, you may face penalties. These can vary depending on your lender and the terms of your mortgage.

   • Some lenders offer portable mortgages, allowing you to transfer your existing mortgage to a new home without penalties.

2. Bridging the Gap

   • If you’re buying before selling your current home, you may need bridge financing to cover the gap between closing dates.

3. Calculating Your Equity

   • Your home’s current market value minus any outstanding mortgage balance represents your equity, which can be used as part of your down payment for the new property.

4. Not Always a Slam Dunk

   • Even with home equity and a solid income, other factors like debt levels or credit issues can still complicate approval.

Consult the Experts

Navigating these complexities is where professional advice is invaluable.

• Speak with Your Mortgage Professional: A mortgage broker or lender can help assess potential penalties, financing options, and whether porting your mortgage makes sense.

• Lean on Your Realtor: A good real estate agent will have strong mortgage contacts to connect you with professionals who understand your unique situation.

How Pre-Approval Prepares You to Make an Offer

Being pre-approved gives you the tools you need to act quickly and confidently when you find the right home. Here’s how it helps:

1. A Competitive Edge

   • In a competitive market, a pre-approval letter shows sellers you’re financially ready to buy, making your offer more appealing.

2. Streamlined Decision-Making

   • With a clear budget, you can narrow your search to homes you can afford, saving time and avoiding disappointment.

3. Fewer Delays

   • When you’re pre-approved, much of the financial review process is already complete, allowing you to close faster once your offer is accepted.

And How Do I Do It?

Getting pre-approved is easier than you might think. Here are the steps:

1. Choose a Lender or Mortgage Broker

   • Research different lenders and brokers to find one that offers competitive rates and personalized service. A broker can compare multiple lenders for you.

2. Gather Your Documents

   • Most lenders will require:

     • Proof of income (pay stubs, T4s, or tax returns for the self-employed).

     • Bank statements to verify your savings and down payment.

     • Details of existing debts like car loans or credit cards.

     • Government-issued ID.

3. Check Your Credit Score

   • Lenders will pull your credit report as part of the process, but it’s a good idea to check it yourself beforehand to catch any errors or red flags.

4. Submit an Application

   • Fill out the pre-approval application with your chosen lender. They’ll review your financial situation and provide a pre-approval letter indicating how much you qualify for.

5. Understand the Terms

   • Your pre-approval will specify the maximum amount you can borrow, your estimated monthly payments, and the interest rate (often locked in for 90–120 days).

6. Stick to Your Budget

   • Just because you’re approved for a certain amount doesn’t mean you should max it out. Consider leaving room for property taxes, home maintenance, and other costs.

Ready to Get Started?

Getting pre-approved isn’t just about meeting lender requirements—it’s about setting yourself up for success. From understanding your budget to preparing for additional costs, pre-approval ensures you’re fully equipped to make a strong offer and secure your dream home.

If you’re serious about buying, don’t wait to take this critical first step. I can connect you with trusted mortgage professionals and guide you through the entire process. Ready to get pre-approved and move forward with confidence? Let’s talk today!