This is a tricky question and will often come down to factors pertaining to your situation, the current market, what sort of back-up plan you have in place, and your overall needs. Where there is no right answer here, selling your home first will be the safer option. Selling your home before making your next purchase will give you a better understanding of your overall budget. Selling first will also allow you to use the proceeds from your sale towards the purchase of your new home. On the other hand, the risk of selling your home first means you may not…

If your down payment is stuck in the equity of your home without any secondary source of funds to put towards your purchase deposit, then deposit financing might be for you. A deposit is different from a down payment and demonstrates the buyer’s good faith to close on their purchase agreement. If you find yourself needing these temporary funds, there are options available. How Does Deposit Financing Work? A firm sale contract for your current home must be provided. The funds leant are secured against your current home. The amount borrowed for your deposit on your new home must be paid back in full once…

Not necessarily! Ideally, you would want to close on the sale of your existing home before the completion of your new purchase as this allows you to receive the funds from the sale of your home to put towards the down payment on your new purchase. In cases where the sale of your current home takes place after the completion of your new purchase and your down payment is coming from your sale, bridge financing will be an option that helps you bridge the gap of your down payment between purchase and sale closing dates.

Let’s take a quick look at the typical costs associated with buying your new home: Land Transfer Tax In the province of B.C., when ownership transfers title, the buyers are faced with a land transfer tax, also referred to as property transfer tax + 1% on first $200,000 + 2% on balance up to $2,000,000 + 3% on the balance over $2,000,000 + 2% on balance over $3,000,000 **If Residential** Please note that there are some exemptions from this tax for first time home buyers, and new built properties. Legal Fees As the final stage of your home buying process, your legal team (lawyer or notary), are responsible for…

Realtor Fees Realtor fees are typically paid by the seller of a real estate transaction in Canada and will be based on the terms you and your realtor set forth. Legal fees Just like when buying your new home, your legal team (lawyer or notary), will be responsible for legalizing your real estate transaction. This estimated cost is between $1,500 & $2,500. Mortgage Penalty Fees This penalty is the number one cost when moving from one home to the next and takes place when you are selling a home that has an existing mortgage in place. Depending on the mortgage product you are in, this penalty…

If you’re using the equity in your home for the down payment on your next home, this may seem complicated at first glance. We will work with you to help calculate the total remaining equity in your home after all expenses are accounted for. We will then put a detailed plan in place to help you qualify and set you up in a mortgage product that offers you optimal flexibility with a payment you’re most comfortable with.

The minimum down payment on your next purchase is a very common question in today’s market so let’s break that down. The minimum down payment requirements are: 5% on the first $500,000. 10% on the next $500,000, up to $1,000,000. 20% on any purchase over $1,000,000. 20% will also be required when you: Purchase a rental property Take a 30-year amortization Refinance your mortgage Purchase over $1,000,000 Utilize alternative financing options Examples of some down payment sources may include: Personal savings A gift from an immediate family member RRSP’s or TFSA’s Investment accounts Borrowed money in some cases

With all our clients, our main goal is to save you as much money as possible whilst setting you up in a mortgage that helps you succeed. That means our first step is always to look at the portability of your current mortgage over to your new home. In some cases, this is a great option where your rate may be lower than market rates and we can set you up with your same lender. In other cases, there may be more competitive rates and mortgage solutions available to you. Because the market is always evolving, we make it our priority to…