Trading up to a bigger home or down to something simpler sounds straightforward — until you hit the real question: do you buy the next place first, or sell the one you have? Get the sequence right and the move is smooth. Get it wrong and you're either carrying two mortgages or scrambling for a rental.
The two ways it can go wrong
Every owner trading homes faces the same timing gap. You can only move in one sequence, and each carries a distinct risk.
- Buy first, then sell. You lock in your next home before the current one is sold. The risk is carrying two properties — two mortgages, two sets of property taxes, two strata fees — if your existing home takes longer to sell than expected.
- Sell first, then buy. You have cash and certainty on the sale, but you may complete on it before you've found and closed on a replacement. The risk is being temporarily without a home, or feeling pressured into a purchase that isn't quite right.
Neither is universally correct. The right answer depends on your finances, your local market, and your tolerance for uncertainty.
Bridge financing: the tool that connects the two
Bridge financing is a short-term loan that "bridges" the gap when your purchase completes before your sale does. It lets you tap the equity tied up in your current home — before that home has actually closed — to fund the deposit or completion on the new one.
A few things worth understanding about how it typically works:
- Lenders will usually only consider bridge financing once your existing home has a firm, unconditional sale in place. A sale that still has conditions attached is much harder to bridge against.
- It's short-term by design, generally covering the days or weeks between your two completions — not months.
- It carries interest and often setup or administrative costs, so it's a convenience you pay for, not free money.
Bridge financing is what makes "buy first" workable for many people. Talk to your mortgage broker or lender early, because approval depends on your overall qualification and the strength of your existing sale.
Subject-to-sale offers: the other bridge
If you'd rather not carry two homes at all, a subject-to-sale-of-buyer's-property condition is the classic tool. Your offer on the new home is conditional on successfully selling your current one within a set window.
It protects you, but it comes with trade-offs:
- In a competitive market, a subject-to-sale offer is weaker than one without it. A seller weighing multiple offers will often prefer a cleaner, unconditional bid.
- Some sellers accept it but attach a time clause (often a 48- or 72-hour clause). If another buyer comes along, you're given a short window to remove your sale condition or step aside.
- It works best in slower markets, on homes that have been listed a while, or where you have a genuinely motivated seller.
Timing risk cuts both ways
The core tension is that you rarely control both completion dates. When you negotiate, remember that completion and possession dates are negotiable terms — and aligning them can matter as much as price. A cooperative party on each side can let you set closings a few days apart, so the equity from your sale funds your purchase with minimal overlap.
But you can't count on perfect alignment. Build in a cushion:
- Keep your deposit funds accessible. In BC, deposits are commonly around 5% of the purchase price and held in trust, so plan for that outlay before your sale proceeds arrive.
- Have a fallback for a short gap — a bridge loan pre-discussed with your lender, or a willingness to rent briefly.
- Account for the tax mechanics that affect cash: Property Transfer Tax on the purchase, and GST on new construction (resale is exempt).
How to actually decide
Work through these in order:
- Confirm what you qualify for. Before anything else, ask a mortgage professional whether you can carry both homes short-term and whether you'd be approved for bridge financing. This single answer often makes the decision for you.
- Read your market conditions. In a fast-moving seller's market, homes sell quickly but buying can be harder — which leans toward buy first. In a slower buyer's market, subject-to-sale offers are more acceptable — leaning toward sell first or a conditional purchase.
- Weigh your risk tolerance. Can you sleep with two mortgages for a few weeks? Or would a short rental gap bother you less? Be honest.
- Check your equity position. Strong equity opens options — bridge financing, a stronger unconditional offer. Thin equity narrows them.
There's no prize for guessing. The owners who move most smoothly are the ones who line up their financing conversation, their listing strategy, and their offer strategy before they act — so the sequence becomes a decision, not an accident.
Start with the numbers you can control
If you're weighing a move, begin with a clear read on what your current home is worth and how it fits the plan. A home evaluation is the right first step, and when you're ready to map out the sequence, reach out — we'll help you build a plan that fits your market and your comfort level.