Is it better to buy a new home or sell your existing home first? Both options have their advantages and their risks. By carefully examining the pros and cons, and by providing alternatives in case of setbacks, you will be able to make an informed decision.

Selling First

By selling your current home before buying a new one, you’ll know the exact amount you’ll be receiving from the sale. You’ll therefore have a very good idea of how much money is available to buy your new home.

You might start feeling an urgent need to find a new home right away. But keep in mind that you’ll already have all the information needed to make your promise to purchase. For example, you’ll know when the buyers of your current home are moving in, and can therefore easily establish when you’ll need to take possession of your new home. If ever the dates don’t coincide, you can always plan for temporary accommodation.

Buying First

When you buy first, you’ll know your new address, the exact price of your new home, the date on which you’ll become owner and the transaction date. You’ll be able to consider these things when you receive a promise to purchase for your current home.

You can also make a promise to purchase that is conditional on the sale of your home. In this case, the owner of the property you’re interested in might receive another offer without any conditions. In order to give yours priority, the owner will ask you to withdraw your condition. You will therefore have to decide whether you’d rather buy that property before selling your existing home, or withdraw your offer.

One way or another, it’s a good idea to plan a temporary source of financing in case your current home isn’t sold when you sign the purchase contract for your new home.

Are you currently renting and thinking about joining the ranks of homeowners? You should know that in addition to providing numerous financial benefits, buying a home will help improve your quality of life. Not only do homeowners enjoy more freedom, they also have a strong feeling of pride, as well as peace of mind. It’s definitely a worthwhile investment!

A Well Adapted Home

First and foremost, being a homeowner means living in a house that suits your tastes and fits your lifestyle.

Is your family growing – do you want a backyard and basement playroom for your children? The purchase of a home can help you benefit from these extra spaces and is also a good long-term investment. Condominiums and plexes offer other benefits: less maintenance in the first case and additional income in the latter.

Building Capital

Paying for a home is a bit like making long-term savings. Instead of paying rent to a landlord, your monthly mortgage payments are used to finance your assets and build capital that you will recover once you finish paying.

Taking Advantage Of Fixed Payments

Tired of rent increases? Unlike tenants who must deal with these fluctuations, as a homeowner, you can enjoy fixed payments for many years and, depending on the type of mortgage you choose, protect yourself against possible interest rate increases.

A New Lifestyle

Unleash your creativity and decorate your house as you wish, without worrying about the restrictions that are imposed on tenants. Any amount invested in decoration or renovation will be for your benefit. Moreover, nobody can make you leave your home, or enter uninvited for inspection or maintenance.

You’re dreaming of a big house on the waterfront, but does it really fit your lifestyle? Consider this carefully because it’s important to distinguish your dream home from the one that actually meets your needs. Before you begin your search, take the time to consider your needs thoroughly.

Your Needs

Every family has its own needs and priorities. How many rooms and bathrooms will you need? Is a dining room a necessity? And what about the garage? Will it turn into yet another storage space?

Your Tastes

Consider your style. If you’re not enthusiastic about do-it-yourself projects, avoid homes that require major renovations. And even if a spacious yard seems attractive, are you willing to spend the time caring for it? If you prefer city life you’ll have access to theatres, services and restaurants, but it’ll be noisier and won’t have as many green spaces. In other words, determine your priorities!

What’s Your Budget?

Don’t make the mistake of buying a home that is out of your price range. To find the home that’s right for you, adapt your needs to your budget. Once you’ve become an owner, your investment will start to increase in value and will eventually help you access a home that is closer to your ideal. In the beginning, it’s important to put savings aside for small purchases and unexpected expenses. Ensure you have enough money for maintenance costs such as insurance and repairs, as these can amount to 2% or 3% of the price of your home per year.

Your Environment

The environment is also an important factor. Is there a daycare or school nearby? Can your children take public transportation or will you need to drive them around? Consider the distance between home and work too.

Did you know that when you buy a property, you must have money set aside to cover start-up costs? Your down payment and mortgage payments are not the only costs involved, so it’s wise to have some additional savings set aside that can be used for your additional expenses.

These expenses should not be taken lightly and some mortgage lenders will even check that you have these funds available before granting you a loan. Mortgage loans are calculated based on the value of your home and, therefore, cannot be used to pay these additional costs.
Here is a list of common start-up costs:

1. Property inspection and evaluation
2. File processing fee for mortgage insurer as well as any taxes on the premium
3. Notary fees
4. Adjustment costs determined by the notary (electricity, heating, municipal and school taxes, equipment rental contract, etc.)
5. Property transfer tax (welcome tax)
6. Moving expenses
7. Service and utilities hook-up fees (phone, electricity, etc.)
8. Decorating (paint, curtains, etc.)