Should you sell your house before you buy a new one?
When you decide to move, the choice to sell your home first or buy your next home first is strongly dependent not only on market conditions, but on your personal financial situation.
To buy first or to sell first? This is the eternal question for home owners who are considering a change. Finding the right option involves careful consideration of current market conditions and individual lifestyle and financial circumstances.
Those who sell before buying may need to consider the possibility of renting for a period while finding a new home, especially if their lifestyle requires them to stay within their current neighbourhood. Proximity to work, and school, for those with children, are factors to take into consideration. It is also prudent to research local rental market conditions. Recent mortgage changes have forced many potential buyers to rent, thereby decreasing rental availability in many major cities across Canada.
If a new home is purchased before the original property sells, affordability becomes the major concern. If the first property doesn't sell right away, the home owner is responsible for carrying the costs of both properties at once, which is not always a possibility. Bridge financing can be arranged in some cases, if it is simply a matter of closing dates not matching exactly, but this shouldn't be relied upon as the only option. (Bridge financing is only granted to those with a committed buyer.) Contact an Ottawa Mortgage Broker with any questions regarding this process.