Should You Sell Before You Buy in Toronto’s Market?

If you already own a home and are looking to make a move in Toronto’s 2025 market, one of the biggest questions is: Should you sell your current home before buying a new one? There’s no universal answer—it depends on your financial flexibility, risk tolerance, and the state of the market.

Let’s break down the pros, cons, and key considerations so you can make a move that feels smart and secure.

Why You Might Sell First

1. Know Exactly What You Can Afford Selling first gives you a clear picture of your net proceeds, which allows for accurate budgeting. You won’t overextend yourself by guessing at your sale price.
2. More Power to Negotiate With money in the bank and no home to sell, you’re a more attractive buyer to sellers. You may be able to negotiate better terms or prices.
3. Avoid Carrying Two Mortgages Bridge financing can be expensive and stressful. Selling first eliminates the risk of paying two mortgages if your existing home doesn’t sell quickly.
4. Less Pressure to Sell Fast If you’ve already sold, you’re not rushing to offload your home just to close on your purchase. You can wait for the best offer.

➡️ Tip: If the market is soft or uncertain, selling first offers more control.

Why You Might Buy First

1. You Won’t Miss Out on Your Dream Home Toronto homes—especially good ones—can sell fast. If you’re waiting to sell first, you might miss the perfect property.
2. You Can Move Without a Gap Buying first allows for a seamless transition. You can move from one home to the next without temporary housing or storage costs.
3. Rising Market? Lock in Now If home prices are trending upward, buying first lets you secure your next property before prices climb further.

➡️ Tip: This strategy is more viable in a seller’s market or if you qualify for bridge financing.

The Middle Ground: Bridge Financing

Bridge financing lets you buy first, then carry the cost of your new home temporarily while waiting for your current home to sell.

What to know:

• It’s short-term, interest-only financing
• Your lender must see a firm sale on your existing home before closing
• Interest rates are usually higher than mortgage rates

➡️ Tip: Not all lenders offer bridge loans—ask your mortgage broker early.

Questions to Ask Yourself

• Can I afford to carry two properties temporarily?
• How fast are homes selling in my neighbourhood?
• Am I emotionally prepared for overlapping closings or temporary moves?
• Do I have a backup plan if one end of the deal falls through?

Your answers will guide the right strategy.

Final Thoughts

There’s no one-size-fits-all rule in real estate. Selling first gives you financial clarity and peace of mind. Buying first offers flexibility and control over your next move. Bridge financing can help—but only if you qualify and plan ahead.

Whatever path you choose, make sure to:

• Work with a realtor who understands timing strategies
• Get pre-approved for financing
• Have a contingency plan

Toronto’s market is fast-moving—but with a smart game plan, your next move doesn’t have to feel like a leap of faith.