If you own a home and want to move, sooner or later you face the classic question: do you sell first, or buy first? Get it wrong and you could end up carrying two homes, or with nowhere to live. Here’s how to decide, and the tools Toronto buyers and sellers use to line up both closings.
Key points
- Sell first if you need the equity for your next down payment or can’t carry two mortgages. It’s the lower-risk option.
- Buy first if you’ve found a hard-to-replace home and your home will sell quickly, or you can afford to carry both.
- A long closing on your sale and a short-term bridge loan can cover the gap between the two.
- Sale-conditional offers are possible but rarely win in competitive markets.
Last updated: October 2026. Speak with your lender before committing to a purchase, especially about bridge financing.
Option 1: Sell first
You list and sell your current home, then buy your next one with a firm sale behind you.
Pros
- You know exactly how much equity you have to spend.
- No risk of carrying two mortgages.
- Your offer on the next home can be firm, which makes it stronger.
Cons
- Pressure to find the next home before your closing date.
- You may need short-term housing (a rental, family, or a rent-back from your buyer) if timing doesn’t line up.
How to make it work
Negotiate a longer closing on your sale, often 60 to 120 days, so you have time to shop. You can also ask the buyer for a short rent-back after closing. That gives you a set number of weeks to move while you finish your purchase.
Option 2: Buy first
You find and buy your next home, then sell your current one before (or soon after) the purchase closes.
Pros
- You can take your time to find the right home without a deadline.
- Only one move, directly from old home to new.
Cons
- If your home sells for less than expected, or takes longer, you may have less money for the purchase than you planned.
- If it doesn’t sell before your purchase closes, you’ll carry two homes: two mortgages, property taxes, utilities and insurance.
- Your lender will need to see that you can qualify, or that you have a plan to cover the gap.
How to make it work
Before you buy, get a realistic valuation of your current home and a lender’s confirmation of what they’ll approve, including whether you qualify for bridge financing. Set your purchase closing date far enough out to give your home time to sell.
Tools that help bridge the gap
| Tool | What it does | Watch out for |
|---|---|---|
| Bridge financing | A short-term loan that lets you use your current home’s equity toward the new purchase when your sale closes after your purchase | Usually requires a firm sale; terms and fees vary by lender |
| Long or flexible closing | Gives you more time between sale and purchase | Buyers may want a specific date; flexibility can cost you in negotiation |
| Rent-back | You rent your sold home from the buyer for a short period after closing | Needs a written agreement covering rent, insurance and move-out date |
| Sale-conditional offer | Your purchase is conditional on selling your current home by a set date | Rarely accepted in competitive markets; seller may keep marketing their home |
| Porting your mortgage | Moves your current mortgage and rate to the new home | Timing and approval rules differ by lender |
Which is right for you? A quick checklist
Lean toward selling first if:
- You need the proceeds for the next down payment
- Prices in your area are flat or softening
- Your home is unique or may take longer to sell
- You couldn’t comfortably carry two homes for a few months
Lean toward buying first if:
- Homes like yours are selling quickly in your neighbourhood
- The home you want is rare (a specific school zone, street or layout)
- You have the financial cushion to carry both homes for a period
- Your lender has confirmed bridge financing or a bigger approval
A common Toronto scenario: selling a condo to buy a house
Many of my clients are moving from a condo in North York, Midtown or Downtown to a house in Etobicoke or York Region. Condos and houses often move at different speeds, so the sequence matters. I’ve put together a dedicated guide on how to sell your condo and buy a house, including how to time both closings.
How I help coordinate both sides
- Price your current home accurately with a market evaluation, so your budget is real.
- Review neighbourhood activity to estimate how long your home will take to sell.
- Connect you with a lender to confirm your approval and bridge options.
- Plan the timeline and negotiate closing dates on both sides that work together.
Frequently asked questions
Can I buy a new home before selling my current one in Toronto?
Yes, many people do. You’ll need to qualify for both mortgages or have bridge financing in place, and leave enough time for your current home to sell.
What is bridge financing?
A short-term loan from your lender that gives you access to the equity in your current home before it closes, so you can complete your purchase. It’s usually only available once your current home is sold firm.
How long a closing should I ask for?
It depends on your plans, but 60 to 90 days is common when you’re also buying. Your agent can help you balance flexibility with what buyers in your market expect.
What if my home doesn’t sell in time?
You may have to carry both homes, reduce your price, or arrange other financing. That’s why pricing correctly from the start and building in buffer time are so important.
See how I help sellers on my Selling page and buyers on my Buying page. Planning your costs? Read how much it costs to sell a house in Toronto.
Start with what your home is worth
Your home’s value decides your next move. Get a free evaluation, then let’s map out a sell-and-buy plan that fits your timing.