The phrase "timing is everything" was never more true than in reference to the real estate industry. When you're buying and selling a home it's like a balancing act where you hope that you can find a condominium for sale in Toronto Ontario within a reasonable time from when you sell your home in Burnaby. But the truth is that while there are some people who are able to close on both properties in perfect unison there are many more that will own two homes at the same time. This means you'll temporarily be paying off two different loans to Canadian mortgage companies. Here are some tips for dealing with this situation.
Real estate experts are estimating that nearly ninety percent of buyers are in possession of two different properties for at least a few days while they go through the transition of moving. The likely cause of this is that interest rates are low enough that people don't feel the need to scramble as they hand over the keys and get all of the final paperwork in. And if you're moving from Etobicoke condos for sale or a Burnaby property to another home in the area it can actually make the process of getting all of your belongings to your new house that much easier.
While you will be going from one mortgage to another you actually don't technically have two mortgages. What you have is the mortgage outstanding on your own property and a bridge loan to cover the money that you will get in your home sale. If you were downsizing to a smaller piece of PEI real estate and won't need a mortgage on your new property than you might also qualify for this loan but it is a little harder to get approved.
There are also people who have two mortgages over a longer period of time. You might wish to buy a second home to use as a cottage or as income property. When dealing with this situation you definitely will want to take the time with lending representatives and your Burnaby or Oakville real estate agents to make sure that the payments on your second loan are at a rate that you will be able to afford for years to come. If you're buying a second home for an income property this usually means that you will need the property to be able to take in a certain amount from the renters.
If you are worried about needing to pay two mortgages at the same time while you're waiting to sell one property than you should consider not buying until an offer is made on your home. It might even be worth it to rent until you are sure that the sale will go through.
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