Should I Sell My Home Before Buying a New One?

If you already own a home in Toronto and are thinking about moving, one of the biggest questions you’ll face is whether to sell first or buy first. Both paths can work well, but the right choice depends on your finances, timing, and how the Toronto real estate market is performing.

Selling First: A Safer Financial Move

For most homeowners, selling first offers more financial security. You’ll know exactly how much your current home sold for, giving you a clear budget when buying your next property. It also removes the stress of carrying two mortgages or worrying about your first home sitting on the market too long.

In Toronto, where home prices and interest rates can shift quickly, selling first gives you control over your equity and cash flow. It’s a practical choice for anyone who wants to avoid short-term debt or bridge financing.

The tradeoff is timing. If your home sells faster than expected and you haven’t bought yet, you may need temporary housing or a short-term rental. Some sellers negotiate longer closing dates to allow time to find their next property, which can help reduce the gap between moves.

Buying First: Flexibility and Convenience

Buying before selling appeals to homeowners who want to secure their next home without feeling rushed. In a competitive market like Toronto, the best listings often move quickly, and having no “sale condition” on your offer makes you more appealing to sellers.

If you choose this route, it’s important to have your financing fully prepared. Bridge loans or home equity lines of credit can help cover the cost between closings, but they come with added fees and interest.

Buying first gives you control over your next move, you can focus on finding a home you truly love before parting with your current one. Just be sure you’re financially comfortable handling both properties for a short period if needed.

How the Toronto Market Affects Your Decision

Your choice also depends heavily on current market conditions. In a seller’s market, where homes sell quickly and bidding wars are common, buying first might make sense since your current home is likely to sell fast.

In a buyer’s market, where listings take longer to sell, it’s usually safer to sell first to avoid being stuck with two homes or forced to discount your sale price.

Monitoring market trends, like average days on market, inventory levels, and interest rate changes—can help you make a more informed decision.

Other Factors to Think About

Beyond market conditions, consider your personal situation. Are you relocating for work and have strict timelines? Do you have children and need to minimize disruption during the school year? Are you upsizing or downsizing?

Each scenario calls for a slightly different approach. For example, downsizers often sell first to release equity, while growing families may prioritize buying first to secure a larger space.

Finding the Right Timing and Support

No matter which route you take, planning ahead is essential. Discuss your options with a trusted Toronto real estate agent who understands both sides of the market. They can help you prepare your home for sale, coordinate timelines, and connect you with mortgage professionals to explore financing options.

Thinking about selling your Toronto home and buying another? Talk to a local real estate expert for a personalized strategy that fits your timing, goals, and budget.