When buy-first works:
• You have liquid cash or a HELOC to cover the down payment without your current home’s equity
• You’re in a rising market — your current home’s value grows during the gap
• Your target property is rare (specific street, unique floor plan, custom build) and might not return
• You have employer relocation support

When buy-first bites in 2026:
• Falling or flat prices: your current home sells for less than projected, leaving a financing gap
• Higher DOM: 60+ day overlap means double mortgage + tax + utilities = $5,000–$15,000/month carry
• Stress sells: pressure to accept first offer = 3–8% below market
• Bridge financing locked in at premium rates (typically prime + 1–3%)

2026 reality: with DOM rising and prices soft, buy-first carries higher risk than it did 2020–2022.

When sell-first works:
• Falling market: you lock in price now, buy when target inventory grows
• Plenty of target inventory (Condo, generic SFH in active areas)
• Cash flow tight: you can’t carry double mortgage
• Flexible interim housing (move to rental, family, vacation home)

When sell-first bites:
• Rising market: target prices rise during your interim period
• Rare target: nothing matching comes up while you’re displaced
• Long interim costs: 3 months of rental + storage = $6,000–$15,000
• Buyer of your house wants quick closing while you want long — coordination tension

2026 reality: sell-first generally lower risk in the current market. Most owners with realistic target properties available on MLS should sell first.

Typical terms (2026):
• Length: usually up to 90 days, occasionally 120
• Rate: prime + 1–3% (varies by bank and your relationship)
• Setup fee: $300–$1,000
• Eligibility: requires firm sale agreement on current home with closing date

Cost example: $400,000 bridge for 45 days at 8.5% rate = $4,200 interest + setup fee. Acceptable for a confirmed back-to-back deal; expensive if your sale falls through.

Bridge financing requires firm sale. If you haven’t sold yet, your bank typically won’t bridge — too much exposure. This is the key reason “sell first or have a firm sale” is the safer 2026 path.

Negotiate: bridge rates and setup fees are negotiable, especially with long-standing bank relationships. Compare 2–3 lenders.

Why it matters in 2026: if your current mortgage rate is 2–3% from 2021, today’s renewal would be 4.5–5.5%. Porting saves you the rate differential — often $3,000–$15,000/year.

Eligibility:
• Both closings within bank’s porting window (usually 30 days, occasionally 90)
• New home’s value supports the mortgage (loan-to-value tests)
• Same borrower(s) — adding spouse may require re-qualification
• New mortgage amount: if borrowing more, the extra is at current rate (blend)

Common mistakes:
• Mortgage porting requires closing-day coordination — buy and sell within porting window. Plan dates accordingly.
• Not all mortgages port (variable-rate often, fixed-rate sometimes). Check your specific terms.
• Discharge fees still apply on the original property.

Talk to your mortgage broker 60 days before any move to confirm porting eligibility and structure.

Condition 2: Mortgage rules
• Locked low-rate mortgage: prioritize porting. Both closings within porting window (usually 30 days).
• Standard-rate mortgage: more flexibility on timing, less penalty pressure.
• Variable-rate: most portable but rate not preserved across blend.

Condition 3: Market direction
• Rising market: buy first (your current home gains during gap).
• Flat market: simultaneous close ideal.
• Falling/soft market (like much of 2026 GTA): sell first lower risk.

Condition 5: Life timing
• School calendar (kids): ideally close before Aug 15 for September start. Reverse-engineer move dates from there.
• Job change/relocation: start date drives. Use bridge or rental as buffer.
• Retirement / downsizing: generally no time pressure — optimize for net proceeds. Sell first.
• Family event (birth, eldercare): often forces buy first.

If 3+ conditions favor one sequence, follow it. If conditions split, sell first is the safer 2026 default.