Should You Sell Your Home Before Buying in Another Province?

Selling your current home before buying in your destination province is the lower-risk approach for most buyers. It gives you certainty about your available equity and eliminates the risk of carrying two mortgages simultaneously.

Knowing exactly how much you have to work with makes it easier to set a realistic budget in your destination market. You avoid the stress of needing to sell quickly under pressure.

The main trade-off is that you may need temporary accommodation between your sale closing and your destination purchase. This could mean renting short-term, staying with family, or using a hotel or furnished rental.

In a competitive destination market, selling first can also put you in a stronger negotiating position -- you are not subject to a sale condition, which makes your offer more attractive to sellers.

Buying in your destination province before selling your current home allows you to secure a property without the pressure of a deadline. This can be advantageous in competitive markets where desirable properties sell quickly.

The main risk is carrying two mortgages simultaneously if your current home does not sell as quickly as expected. This requires sufficient financial reserves or access to bridge financing.

Buying first also means you have a confirmed possession date, which makes planning your move logistics easier.

Some buyers in slower origin markets choose to buy first because they are uncertain how long their current home will take to sell and do not want to be locked into a tight timeline.

Bridge financing is a short-term loan that covers the gap between your destination purchase closing date and your origin sale closing date -- when you need funds from your sale to complete your purchase, but the sale has not yet closed.

Most major Canadian banks and many credit unions offer bridge financing. Eligibility typically requires a firm sale agreement on your current home and a confirmed purchase agreement on your new home.

Bridge financing is usually available for periods of up to 90 days, though some lenders offer longer terms. Interest rates on bridge loans are typically higher than standard mortgage rates. Confirm current rates and terms with your bank or mortgage broker.

Not all buyers qualify for bridge financing, and not all lenders offer it. Confirm your eligibility before relying on it as part of your plan.

The most effective way to coordinate an interprovincial move is to have agents on both sides who are communicating with each other about your timeline requirements.

Your origin listing agent needs to know your target possession date in your destination province so they can negotiate a closing date that aligns. Your destination buyer's agent needs to know your origin closing date so they can negotiate a possession date that works.

Building flexibility into your destination offer -- such as a longer completion date -- gives your origin sale more time to close first. This is often possible in markets where sellers are not under pressure to close quickly.

If you are selling in a slower market and buying in a faster one, you may need to accept some overlap and plan for bridge financing or temporary accommodation.

An interprovincial move involves two separate real estate transactions governed by different provincial legislation. Your origin agent and your destination agent must both be licensed in their respective provinces.

Having agents who understand your overall timeline -- not just their individual transaction -- is essential for a smooth move. Camille can introduce you to vetted agents on both sides of your move and facilitate communication between them.

The introduction is free and there is no obligation to proceed. You decide whether to work with the agents introduced to you.

Have a question that isn't answered here? Reach out directly — we're happy to help.