A Simple Guide to Buying a House Before Selling in Canada

By: Andrew Presta

A Simple Guide to Buying a House Before Selling in Canada

Tags: best real estate agents in Toronto, real estate in vaughan, real estate agents in vaughan

Selling your home can be a complicated and time-consuming process, so it's important to be prepared before you finally put your house on the market. In Canada, it is possible to buy a house before selling your current one. This can be a great way to upgrade to a nicer home without having to wait to sell your existing property.

 

However, it's important to do your research and understand the procedure before you commit to anything. There are a couple of things needed to make sure the process goes smoothly. Continue reading to learn more.

 

1) Do Your Research

 

Doing your research on the property market is the first step. This involves being aware of the local real estate market, the estimated value of your current home, and the estimated value of your target home. It can help you determine your home's equity and how much can be spent on a new house. Furthermore, keep an eye on interest rates, which can impact your ability to afford a new home.

 

Remember that your home's equity is the sum of the appraised value and the remaining debt on your mortgage. Along with relocation expenses, it's a must to calculate the costs of selling your current residence, such as real estate commissions.

 

2) Make a Realistic Timeline

 

Now, you might want to assess the realistic timeline for the whole procedure. It will allow you to estimate the amount of time you have to discover a new residence. This means having the time to sell your current home, buy a new one, and move. It's best to plan in advance so that you're not rushed into making decisions.

 

On the other hand, if you're not in a hurry to sell, you may want to consider taking your time to sell your home. This can help you get the best price tag possible for your home and may allow you to negotiate a better deal on your new home.

 

3) Figure Out the Downpayment

 

One of the most necessary steps is figuring out the downpayment you need to make on your new property, especially if you've yet to sell a previous home. The downpayment is the percentage of the home's value that you must pay upfront. In Canada, the minimum downpayment may range from 5% to 10% of the remaining price.

 

However, it can vary depending on the lender. It's possible to negotiate with a lender before making any decisions about your downpayment. If you're purchasing a high-priced property, you might be able to acquire a loan with a lower downpayment, but you'll have to pay a higher mortgage insurance cost.

 

4) Consult a Realtor

 

Working with a realtor can make everything much easier. Realtors are trained to help you find the best deals on the market and can help you figure out your budget, so consulting one is another great way to find out if you're ready to buy a home. They can assist you with the home-buying process, guaranteeing you get the best deal possible. 

 

Conclusion

 

As you can see, these guidelines are extremely useful, especially if this is your first time buying a home right before selling your current one in Canada. With a little planning, you can be a homeowner once more and sell your home swiftly for a nice price!

 

Seeking houses for sale in Woodbridge? Sold With Presta specializes in residential and commercial real estate, both buying and selling within the Greater Toronto Area. Contact us today for more information!