Published March 22, 2024
Stuck In Place: Making a Move Without Owning Two Homes
Question:
I'm looking forward to purchasing a home in the near future but the thought of owning two properties simultaneously is something I want to avoid altogether. The risk involved is too great and I simply cannot manage both financially. I'm unsure of the necessary steps to take or whom to seek assistance from. Furthermore, I'm eager to move, but my current mortgage won't be up for renewal for another few years. What factors should I take into consideration as I plan my next move?
Ian's Answer:
I'm familiar with the dilemmas homeowners face when searching for a new home, particularly their reluctance to end up with two properties. To assist, I coordinate every step to ensure a seamless transition, minimizing the risk of owning two homes simultaneously. However, despite efforts, risks remain.
To address this concern, written confirmation is necessary within the following days:
Mortgage Company (current):
When does your current mortgage end?
Are there penalties for early mortgage termination?
If applicable, confirm rules/costs for transferring the current mortgage.
What are the documents required to receive an approval for more money (new purchase price will be higher than my current mortgage).
IAN CHARLEBOIS (real estate broker/mortgage agent):
Review the answers above and outline a timeline of action to receive a purchase ‘pre-approval’ from both the current mortgage and my mortgage team. Nobody wants to pay more interest!
Determine the current value of your home.
Identify necessary improvements before listing it on the market.
Prepare your home for professional photos and videos by decluttering at minimum.
As a real estate broker and mortgage agent, I evaluate and offer insights into the best approach for your situation. One option is breaking the mortgage and paying a penalty if it leads to a better long-term product.
This is where having a number of plausible outcomes are needed. It is always best to equip yourself with all the facts to ensure you're always ready to make a decision!
We understand the importance of acting swiftly in today's competitive market and strive to ensure you're well-prepared before making any commitments. Call, text or email anytime. Let’s chat Ontario real estate.
