Buying a Calgary Home While Selling Your Current one.

Are you in the position where you want to find a new home – but need a buyer for your current home? Fortunately there are a few options for people who are buying one home while selling another:

Buying using financing

If you need the equity in your current home to purchase another home, you will need financing to buy before you sell. Most people with a firm sale on their current home go for a short term bridge loan. Yes, it is a high-interest loan intended to help you fund your down payment and other costs that you will repay when your sale goes through.

Another option is a home equity loan, which creates a lien on your property.  The bank has the right to repossess your home if you can't pay it back. Of course reducing the equity in your home whilst increasing your debt, won't look good on a mortgage application.

Selling with a delay

You have to have your timing right, but the best way to get approved for a mortgage is to have a buyer lined up for your house with a waiver to buy in place. Give yourself a longer possession period, your buyer is already ready to move and won't want to wait for you to find a new place. Buyers may agree to a relatively long closing period, maybe include in the contract, closing time can be reduced subject to agreement by buyer and seller.

Have a contingency plan

You may make the purchase of your new home subject to the sale of your own. This buyers clause is not always acceptable by a seller, especially if the seller has only just listed his property and is seeing a lot of action on it. You'll still be responsible for the deposit, but you'll get it back if the sale falls through. Unfortunately, this isn't a very great deal for the seller, they may be trying to manage the timing on a home purchase as well. With a “subject to the sale of the buyers home” you may have to show that your home is priced competitively to persuade the seller to accept your offer.

If you are going to need to make a home sale and a home purchase at the same time, we will need to go over your options with you.

Contact us today on 403-850-0669.


So – You started looking at homes, but now you are starting to get serious. Well here are some important things to get you ready to move!

1. Check with your lender – How much do I qualify for?

You may want to get a couple of options from a couple of lenders (we can help), but by getting prequalified for a mortgage loan it puts you on the road to buying your home. They will tell you how much you qualify for, you can then you can go shopping. Don’t automatically decide you’ll borrow the maximum you’re offered. Take a look at your budgets and then decide how much you actually want to borrow, it may not have to be the full amount.

2. What would be a good sized home for you? 

Remember the bigger the home, the more you will pay in insurance, property taxes and heat! Depending on the age and condition of the house, factor in for the cost of repairs and maintenance. It could be around 1% of its value per year. Figure out rooms needed for the family, maybe you need a guest room or have older parents.

3. Look at comparable home prices in the area- Don’t over pay – Walk away.

Go through the current Actives and previous Sold homes with us. Consider what other people paid for similar homes in the same area. Try not to be emotional, be objective, will the home work is the location correct, am I paying the correct amount.

4. Don’t buy a Money Pit

The home inspection will tell you the condition of the home, and forecast what you will need to address down the line. If the home is a Rural home you will also probably need a Septic test, Well test, water condition test. You want to know exactly what you are buying, not just for yourself but from a resale point of view also.  

5. Check out extra buyer costs.

Costs will include (but may not be limited to) lawyer fees, home inspection, maybe condo inspection, property taxes, the down payment. It is best to know upfront what your closing costs are. Your lender and lawyer will estimate costs at their end. When you are buying - The Seller pays all commissions.

6. Check out the area ahead of time

 So – you have got the OK from your lender and are ready for us to start sending you homes for sale in the areas you like with your criteria – you can trim down the list – and we can go and look at possible homes. It’s always a good idea to drive around areas you like, does the location work for work and schools,  in summer are the gardens cared for. If you can, have a chat with someone who lives in the community.

After 20+ years experience in the Calgary & Area market, we can answer any of your questions and walk you through the whole process. Let’s have coffee! Call us on 403-850-0669

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