Moving up means two deals that depend on each other. Here's how to choose whether to sell or buy first, how bridge financing and porting work, and how to line up the closing dates.
Matthew Gizzie, REALTOR®, Keller Williams Realty Centres. General information, not legal advice.
There's no single right order. Selling first tells you your exact budget but can leave a gap to live somewhere. Buying first secures the home you want but can mean carrying two properties. Bridge financing, a mortgage port and carefully set closing dates are the tools that close the gap.
Each bar is the time you own that home. The red marks are what you have to plan around.
You know your sale price before you commit to a purchase, so your budget is real. The risk is timing: you may need a rental, a short stay or a long closing on your sale to bridge the gap.
Best when your market favours buyers, or your budget is tight.
You secure the home you want, which matters when good homes sell fast. The risk is money: if your current home takes longer to sell or sells for less, you carry both.
Best with strong equity, lender pre-approval for bridge financing, and a home that should sell quickly.
Your offer depends on selling your current home. It protects you, but sellers usually accept it only with an escape clause, which can force you to firm up early if another offer arrives.
Usually the weakest offer a seller will see. How escape clauses work
Your sale closes and the proceeds fund your purchase the same day. No overlap, no gap, but no buffer: if your buyer's funds are late, your purchase can be delayed too.
Many lawyers advise leaving at least a short gap between the two closings.
It lets you use the equity in your current home for the new purchase before your sale closes. Lenders generally want a firm sale on your current home first. TD describes terms of typically up to 90 days; RBC describes 90 days to 12 months or longer. Rates are usually higher than a regular mortgage.
Porting moves your current rate and terms to the new home and can avoid a prepayment penalty. Not every mortgage can be ported, and lenders set their own time limits. If you need more money, the extra is usually blended at today's rate.
If you don't port, breaking a fixed-rate mortgage early usually costs the higher of about three months' interest or the interest rate differential. In FCAC's example, that difference was $3,000 versus $12,000.
A new or larger uninsured mortgage is qualified at the greater of your contract rate plus 2% or 5.25%, under OSFI's current rule. Ask your lender how they treat a port.
At least 5% on the first $500,000 and 10% on the portion up to $1.5 million. Homes at $1.5 million or more need 20% down; mortgage insurance isn't available at that price.
Ontario land transfer tax applies to the home you buy. There's no municipal land transfer tax in York Region; that's Toronto only. Closing cost calculator
Sources: TD and RBC bridge financing pages; CIBC on porting; Financial Consumer Agency of Canada on penalties, blend-and-extend and down payments (updated October 2025); OSFI minimum qualifying rate (January 2026); CMHC (June 2025); Ontario land transfer tax (April 2026). Talk to your lender for your own numbers.
Your likely sale price, your mortgage balance and any penalty or port, and what the lender will approve on the next home.
Based on your equity, how fast your home should sell, and how competitive the homes you want are.
Bridge financing approval, a rental back-up, or a closing date on your sale that gives you room.
Dates, both lawyers, and moving day, with a buffer between the two closings where we can get one.
Matthew Gizzie, REALTOR®, Keller Williams Realty Centres
I map your sale and purchase dates together before you list or offer, so neither deal surprises the other.
A written Market Position Report on your current home tells us what you can realistically spend next. Get yours
Bridge financing and porting are lender decisions, and closing coordination runs through your lawyers. I bring them in before you commit.
Selling first tells you your exact budget, but you may need somewhere to live in between. Buying first secures the home you want, but you may carry two properties or need bridge financing. The right order depends on your equity, how fast your home should sell and how competitive the homes you want are.
A short-term loan that lets you use the equity in your current home toward the new one before your sale closes. Lenders generally require a firm sale on your current home. Terms and costs vary by lender.
Often, yes. Porting moves your existing rate and terms to the new home and can avoid a prepayment penalty. Not every mortgage is portable, and each lender sets its own conditions and time limits.
Yes, but it usually weakens your offer. Sellers often accept it only with an escape clause, which lets them keep marketing and can force you to firm up or step aside if another offer arrives.
It avoids carrying two homes, but it leaves no buffer. If your buyer's funds are delayed, your purchase can be delayed too. Many lawyers recommend at least a short gap between the two closings.
Yes, Ontario land transfer tax applies to the home you buy. The first-time buyer refund doesn't apply to a move-up purchase. York Region has no municipal land transfer tax.
Tell me about your current home and what you're looking for. I'll lay out the order, the dates and the money, side by side.
Updated October 21, 2026. Sources: TD and RBC on bridge financing; CIBC on porting; Financial Consumer Agency of Canada on prepayment penalties and down payments; OSFI; Ontario land transfer tax; Axess Law and Devry Smith Frank LLP on closing coordination.
General information only, not mortgage, legal or tax advice. Lender products, rates and terms change; confirm with your lender and lawyer. Matthew Gizzie, REALTOR®, Keller Williams Realty Centres, Brokerage. Not intended to solicit buyers or sellers currently under contract.
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