Should I Sell or Buy First? A Toronto Homeowner’s Guide

If you're a homeowner in Toronto thinking about making a move, one of the first questions you're likely to face is: Should I sell my current home first or buy my next one? The answer isn’t one-size-fits-all—it depends on your personal circumstances, finances, and the ever-shifting Toronto real estate market. Let’s break down both options so you can make a confident, informed decision.

Person holding a black card with the word 'SELL' cut out, over a wooden surface background.

Option 1: Sell First, Then Buy

Pros:

  • You Know Your Budget
    Once you sell, you’ll know exactly how much equity you have to work with for your next purchase. No guessing, no surprises.

  • Less Financial Risk
    You won’t be juggling two mortgages or worrying about carrying costs on an unsold home.

  • More Negotiating Power
    With no sale contingency on your new offer, sellers may see you as a more attractive, serious buyer.

Cons:

  • You May Be Temporarily Without a Home
    If your ideal property isn’t available right away, you may need to rent short-term or stay with family.

  • Pressure to Buy Quickly
    Tight timelines can lead to rushed decisions or settling for a home that’s “good enough.”

Best For:

Homeowners who prefer financial certainty, want to avoid overlapping costs, or are selling in a hot market where homes are moving quickly.

Hand holding a black card with the word 'BUY' cut out, on a wooden surface background.

Option 2: Buy First, Then Sell

Pros:

  • You Move on Your Terms
    You can take your time finding the perfect property without worrying about being in between homes.

  • No Need for Interim Housing
    Once you buy, you can move in directly after your sale closes—no temporary solutions needed.

  • Good in a Seller’s Market
    If inventory is low and competition is high, buying first can give you the edge in securing a new place before prices rise.

Cons:

  • You May Carry Two Homes Temporarily
    If your current home doesn’t sell right away, you could be responsible for two mortgages and related expenses.

  • Less Predictable Budget
    You may need to guess what your home will sell for, which can impact how much you can safely spend.

Best For:

Homeowners who are financially secure, comfortable carrying some risk, or buying in a highly competitive market with limited options.

What About a Bridge Loan?

If buying first appeals to you but you’re concerned about timing, a bridge loan might help. This short-term financing option allows you to access the equity in your current home to fund your new purchase before your sale closes.

So, What Should You Do?

Here’s a quick self-check:

  • Need certainty and structure? Sell first.

  • Found your dream home and don’t want to lose it? Buy first.

  • Can handle some financial overlap for the right opportunity? Explore both with guidance.

Every move is unique. Market conditions, timelines, and personal comfort levels all play a role. The best strategy is one that’s tailored to you—with expert advice to guide the process.