For those planning to purchase a home, timing is key, says Mr. McGillivray. Though you might expect to buy a new house and sell your current home afterwards, that might be a risky move in this market.
“This may not be the year when you buy a house and then put yours up for sale and expect it to be sold by the time you close on the other one,” he says. It might be a better move to sell first and buy after, since the home you want to purchase will likely still be on the market. “Don’t gamble with being stuck owning two.”
Mr. Jain points out that there are ways to mitigate the challenges of carrying 2 homes at once. He gives the example of a client one of his colleagues worked with — a young couple with kids who were relocating to a new city but struggling to navigate the financial complexities of selling their current home while purchasing a new one.
“This is a common situation, where you’ve seen a new home you’re really excited about and you don’t want to let it slip through your fingers, and at the same time you don’t know the exact price your current home will sell for or how long it will take to sell.”
The couple’s CIBC mortgage advisor helped them explore bridge financing — a short-term loan that allowed them to secure their new home before finalizing the sale of their existing property.
“The advisor also worked with them to reassess their budget, factoring in the cost of living in their new city and ensuring the mortgage aligned with their long-term financial goals,” he says.
Timing is also key for those who are renewing a mortgage, says Mr. Jain. If you’re concerned about getting a good rate, start early.
“There’s no reason to wait [until there are just] days or weeks prior to the renewal. Start working with your mortgage advisor early in the process, especially if you’re uncertain regarding rates,” he says. “If you start early and you’re comfortable where rates are, you can lock in rates earlier and provide some protection against potential interest rate fluctuations.”