Upsizing · downsizing · buying a second property
Selling your current home and buying another one (or keeping it and buying a second) looks simple from the outside. In reality, there are a lot more moving pieces than most people realize. And the biggest mistake I see clients make is not running the numbers and the scenarios upfront. That leads to rushed decisions under pressure once you're already under contract, and that's unnecessarily stressful for everyone involved.
Planning ahead avoids this. And this is the work I love doing.
There's almost never a single right answer here. Should you sell first, then buy? Buy first with a sale of home condition? Use a bridge loan? Refinance your current home to use the equity as a down payment on the next? Keep your current home as a rental? Pay off debt to free up purchasing power instead of putting more down?
These are all real options, and the right one depends on your specific situation, your timeline, your local market, and your overall financial picture. My job is to map all of that out with you well before you're ready to make an offer, so that when the time comes, you can move forward with confidence.
One of the things my clients are most surprised by is how many options actually exist. People often come in assuming their move is harder than it really is. The key is doing the work up front when you have the time to think about making financial decisions and aren't bogged down with the pressure of making home buying decisions at the same time.
You're upsizing to make room for a growing family.
You love your current home, but you've outgrown it. Maybe kids are on the way, or already here. Maybe you need a home office or a yard. You know you'll need the funds from selling your current home to make this work, but you're not sure how to line everything up. Should you sell first? Buy first with a condition? Use a bridge loan? Refinance your current home and keep it as a rental? These are all live options, and the right one depends on your situation, your timeline, and your local market.
You're downsizing for a new chapter.
Maybe the kids have moved out. Maybe you're getting ready for retirement. Maybe you're navigating a life change like a separation. Whatever the reason, the move often comes with a different set of questions. Should you buy the next place in cash or finance it? How do you free up cashflow to support the next stage of your life? There are strong cases on different sides, and the right answer depends on what matters most to you financially.
You're keeping your current home and buying another.
This is one of my favorite scenarios to work on. Maybe you're starting to build a small rental portfolio. Maybe you want a second property for personal use. Either way, you want to maximize your pre-approval on the next property without being penalized for the home you already own. The way your existing home's rental income is calculated, and which lender we choose, can make a huge difference here.
One of the least understood factors impacting your purchasing power is the math behind how rental income is calculated, both for the home you are keeping and planning to rent out and/or for the new property that potentially has its own rental component. Certain banks have more restrictive policies while others specialize in giving clients the optimal usage for that income. Working with a broker who understands the nuances within those policies will position you for the best outcome rather than force you into the restrictive boxes that most major banks have.
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Pre-qualification is an initial step that gives you an estimate of how much you might be able to borrow, based on self-reported information.
A pre-approval, on the other hand, is a more thorough process where a broker and/or lender reviews your credit score, financial details, and income, giving you a more accurate loan amount.
Pre-approvals are still never a full guarantee of approval, the home and documents are only approved once an offer is accepted, however it is crucial when you’re ready to make an offer on a home and shows sellers that you're serious, and demonstrate the financial ability to purchase.
A bridge loan is the bank lending you the money for your down payment when you have a firm sale on your existing property (which you plan to use for the down payment) but it hasn't closed yet.They're available with many lenders, but you never want to assume one is available to you. The type of property, the location, the type of lending available, whether debts need to be paid out, all of these factor in. There are lots of nuances to explore. Before entering into any agreements that require a bridge, it's worth mapping out all the options upfront.
That's a very personal decision, and there's no one size fits all answer. Some people love the idea of being landlords but in practice find out they hate it, even when it makes financial sense. Others find that purchasing multiple properties to build an additional income stream and a long term wealth strategy is incredibly powerful.The most important thing is making this decision with eyes wide open, alongside someone who isn't biased toward one outcome over the other.
This depends a lot on the lender, the type of property you currently own, and what lending options are available to you. There's no single formula. It's something we work through together once we have all the puzzle pieces in front of us, since the right lender choice can have a significant impact on your purchasing power.
A market rent appraisal is a simplified type of appraisal focused on the economic potential of renting out the property. The appraiser determines what a similar property could rent for in the current market. One thing to know: if your home has been owned for a long time and there isn't recent comparable rental data available to the appraiser, a full appraisal may be required to determine the value. In some cases, it makes sense to do that work upfront so we're working with 100% accurate numbers from the start.
This depends on your full financial picture and your long term goals. While the idea of not having a mortgage is appealing to a lot of people, the reality isn't always that simple. If you're carrying high interest debt elsewhere, planning a large renovation, want to keep cash on hand for emergencies, or want to put more toward retirement income, it can actually make more sense to carry a mortgage (even a small one) on your next property.What matters is that we map out your unique situation and goals so that when you make this decision, you're making it from an informed place rather than guessing.
It depends on your goal and your interest rates, but generally speaking, mortgage rates are much lower than any other debt you carry. The most financially advantageous move is usually to pay off other debt before increasing the down payment.If your priority is cash flow, paying off debt will almost always beat putting more down. Mortgages are amortized over a much longer period, so it takes a large lump sum to meaningfully change the payment.We'll compare your options together to figure out what makes the most sense.
This is where a bridge loan would come into play. Bridges aren't guaranteed to be available, and there's a lot to consider before relying on one. The earlier we map out this scenario, the smoother the move will be if it happens.
The precise documents required vary from person to person based on unique circumstance, however here are a few of the most common requirements:
Government photo ID
Recent paystub
Most recent two years' T4s
Letter of employment
Tax returns (if self-employed)
Most recent 3 months of bank/investment statements for your down payment
Mortgage statement*
Property tax statement*
*If you already own a home
Two ways to begin. Pick what feels right for where you're at.
Book a 30 minute call. If you're not sure what path makes sense, this is the best first step.
Start your application directly. We'll set up the call from there.
Either way, we'll end up having that conversation. It's just a question of which one comes first.