Next Home Buying

Our guide to understanding and succeeding when buying your next home

Selling your current home to purchase another one can be complicated.

Whether you're upsizing, downsizing or relocating, buying your next home can be incredibly complicated. There's lots of variables to juggle, and the whole experience can seem overwhelming.

At the Silverman Mortgage Group, we're in your corner. We know how to deal with the complexities of selling one home and purchasing another one.

Smart home buying and selling financing solutions.

We understand that there's a lot to think about when selling and purchasing a home. Between multiple real estate agents, demanding buyers and closing dates that never seem to line up, it's tough.

And it's really, really stressful.

We're here to quarterback the ins and outs of financing your next home purchase. We'll help you decide if you're able to port your current mortgage over to your property, and compare the pros and cons of porting vs. taking out a new mortgage.

Closing costs, property taxes and real estate fees made easy.

We'll also compile a comprehensive, jargon-free spreadsheet that outlines all of the closing costs that come with purchasing another home. This includes calculating the property transfer taxes, Realtor fees, discharge fees and any bridge financing fees so you'll know exactly what to expect.

After all, nobody likes surprises when it comes to buying and selling real estate.

Click here to get started. To learn more about how the Silverman Mortgage Group makes buying your next B.C. home simple, read our next home buyer's guide below.

A Guide To Selling and Buying Your Next Home.

What fees are involved with selling and buying a new home?

Fees involved in selling and buying a new home can include realtor fees, GST, legal fees, moving fees, bridge financing fees, discharge fees, and property tax adjustments.
How do I know how much down payment I have for my next property?

We assess your situation and the fees associated with achieving your goal. We'll outline all the costs of selling and buying, and we'll calculate the equity you'll have available, net of all expenses, for your down payment. We outline this in your lender comparison report.
Do I sell my existing home or buy my new home first?

The answer is unique, and there is no broad solution applicable to all situations.

The safer option is to sell your existing home first, thereby having exact funds from the process of sale to know your available down payment and budget. The only risk to this option is that you sell your home and are unable to find and purchase a new home by your sale or closing date. You are now homeless; hopefully, you remembered your parent's birthday, and they have a spare couch available for you.

The alternative (and potentially riskier) option is to purchase your next home first. Should your existing home not sell for the price you require (or by the date of your purchase), you may now not be eligible for your new home purchase financing. Failure to adhere to the purchase (or sale) agreement will find you in court. It's worth noting that it's not just your deposit that you are risking.

Get in touch, and we can help you find the best option for your unique situation.
Do we have to close our sale the same day as our purchase?

No. To bridge the gap between a varying purchase and close dates, check out our bridge financing solution here.
What is the minimum down payment?

Minimum down payment for your first or fiftieth home purchase is 5% of the first $500,000 and 10% on anything above that. There is a common misconception that after first home, the down payment required is 20% - it is not.

Down payments can consist of your savings, gifted down payment, inheritance, proceeds from your sale and to clarify, can still even be borrowed (example from a line of credit or a loan).
Can we keep the same mortgage lender?

Potentially. We'll review portability options and outline if it's advantageous for you to port and blend. I.e. increase your existing mortgage or break the mortgage and start a new term.

Due to recent changes to mortgage guidelines in Canada, certain lenders that once were are now unable to port and increase the same mortgage as they once were. Minimum down payment for your first or fiftieth home purchase is 5% of the first $500,000 and 10% on anything above that.
What does port and blend mean?

Porting is the transfer of your existing mortgage amount, maintaining the same term, rate, balance and amortization. We'll review the standard terms and conditions of your original mortgage commitment to confirm if this is an available option.

Blending is porting and adding to your total mortgage and avoiding breakage penalties. Your new rate will be a weighted blended average of your existing mortgage term and the new funds being added at present market rates.

Jordan de Brouwer

"I had a great experience with them. I was a first time home buyer and didn't know much about the mortgage application experience. They made the whole process very easy and stress free and explained each step in detail. I would recommend them to anyone looking for a mortgage, especially first time home buyers."

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Leah Allen

"We purchased a second property and Silverman Mortgage Group made the process so easy and quick. I especially liked the personalized video presentation which made it possible for us to clearly understand the process. At a very busy time in our lives almost everything was completed in the comfort of our home."

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Reid Arkinstall

"My wife and I had a great experience working with the Silverman Mortgage Group. It took us a while to find the right home but Zach and his team worked with us throughout the entire process, ensuring we always had the most up-to-date mortgage information. We look forward to working with SMG in the future."

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Resources to help you navigate the property ladder and secure mortgage financing

How to Ensure a Smooth Home Purchase

Figuring out what you can afford, understanding your cash flow, and getting a pre-approval are a few of the steps you should take to ensure a smooth home purchase. Learn what else you should consider.

Learn More

An Overview of the Home Buying Process

If you’re planning to buy either your next home, let’s assess your creditworthiness, take a look at your income, plan for a down payment, and nail down exactly how much you can afford to borrow.

Learn More

Bridge Financing and Deposit Lending

If you’re looking to sell your existing property to buy something else, and you’d like to take possession of the new property before the sale of your existing property goes through, you need bridge financing.

Learn More

3 Questions To Ask Yourself Before Listing Your Home!

If you’re selling a property and plan to move from your existing property to another property you will be purchasing, make sure you have worked through mortgage financing ahead of time. It pays to plan.

Learn More

Porting Your Mortgage

Porting your mortgage is when you transfer the remainder of your current mortgage term, outstanding principal balance, and interest rate to a new property if you’re selling your existing home and buying a new one.

Learn More

Can you Trust Online Mortgage Calculators?

While online calculators are great to run some numbers and estimate mortgage payments, they shouldn’t be relied on for mortgage qualification purposes. Learn more about the mortgage process.

Learn More

How to Handle Missed Payments

If you’ve missed a payment on your credit card or line of credit and you’re wondering how to handle things and if this will impact your creditworthiness down the road, here’s the plan for you to follow.

Learn More

Buying a Second Property

Whether you’re looking to buy a vacation property, start a rental portfolio, or help accommodate a family member, there are many reasons to buy a second property while keeping your existing property.

Learn More

What is a "No-Frills" Mortgage?

When securing mortgage financing, your goal should be to lower your overall cost of borrowing, not just look for the lowest rate mortgage. Learn more about how no-frills mortgages can be a trap.

Learn More

Improving Your Credit Score

Did you know that roughly 20% of credit reports have misinformation on them? Learn more about how regularly reviewing your credit report is an integral part of credit management.

Learn More

Before you Co-Sign a Mortgage

Co-signing on a mortgage for someone is a great way to help them get ahead in life. However, as it could have a significant impact on your financial future, there are considerations.

Learn More

Locking in a Variable Rate Mortgage

If you have a variable rate mortgage and recent economic news has you thinking about locking into a fixed rate, the first thing you can expect is to pay a higher interest rate over the remainder of your term. Learn more about what happens when you lock in a variable rate mortgage.

Learn More

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MORTGAGE ARTICLES

Protect Yourself at Renewal

By Zach Silverman • 08 May, 2024

It’s a commonly held belief that if you’ve made your mortgage payments on time throughout the entirety of your mortgage term, that the lender is somehow obligated to renew your mortgage. The truth is, a lender is never under any obligation to renew your mortgage. When you sign a mortgage contract, the lender draws it up for a defined time, so when that term comes to an end, the lender has every right to call the loan. Now, granted, most lenders are happy to renew your mortgage, but several factors could come into play to prevent this from happening, including the following: You’ve missed mortgage payments over the term. The lender becomes aware that you’ve recently claimed bankruptcy. The lender becomes aware that you’re going through a separation or divorce. The lender becomes aware that you lost your job. Someone on the initial mortgage contract has passed away. The lender no longer likes the economic climate and/or geographic location of your property. The lender is no longer licensed to lend money in Canada. Again, while most lenders are happy to renew your mortgage at the end of the term, you need to understand that they are not under any obligation to do so. So how do you protect yourself? Well, the first plan of action is to get out in front of things. At least 120 days before your mortgage term expires, you should be speaking with an independent mortgage professional to discuss all of your options. By giving yourself this lead time and seeking professional advice, you put yourself in the best position to proactively look at all your options and decide what’s best for you. When assessing your options at the time of renewal, even if the lender offers you a mortgage renewal, staying with your current lender is just one of the options you have. Just because your current lender was the best option when you got your mortgage doesn’t mean they are still the best option this time around. The goal is to assess all your options and choose the one that lowers your overall cost of borrowing. It’s never a good idea to sign a mortgage renewal without looking at all your options. Also, dealing with an independent mortgage professional instead of directly with the lender ensures you have someone working for you, on your team, instead of seeking guidance from someone with the lender’s best interest in mind. So if you have a mortgage that’s up for renewal, whether you’re being offered a renewal or not, the best plan of action is to protect yourself by working with an independent mortgage professional. Please connect anytime; it would be a pleasure to work with you!

The Property Matters in Mortgage Financing

By Zach Silverman • 01 May, 2024

When looking to qualify for a mortgage, typically, a lender will want to review four areas of your mortgage application: income, credit, downpayment/equity and the property itself. Assuming you have a great job, excellent credit, and sufficient money in the bank to qualify for a mortgage, if the property you’re looking to purchase isn’t in good condition, if you don't have a plan, you might get some pushback from the lender. The property matters to the lender because they hold it as collateral if you default on your mortgage. As such, you can expect that a lender will make every effort to ensure that any property they finance is in good repair. Because in the rare case that you happen to default on your mortgage, they want to know that if they have to repossess, they can sell the property quickly and recoup their money. So when assessing the property as part of any mortgage transaction, an appraisal is always required to establish value. If your mortgage requires default mortgage insurance through CMHC, Sagen (formerly Genworth), or Canada Guaranty, they’ll likely use an automated system to appraise the property where the assessment happens online. A physical appraisal is required for conventional mortgage applications, which means an appraiser will assess the property on-site. So why is this important to know? Well, because even if you have a great job, excellent credit, and money in the bank, you shouldn’t assume that you’ll be guaranteed mortgage financing. A preapproval can only take you so far. Once the mortgage process has started, the lender will always assess the property you’re looking to purchase. Understanding this ahead of time prevents misunderstandings and will bring clarity to the mortgage process. Practically applied, if you’re attempting to buy a property in a hot housing market and you go in with an offer without a condition of financing, once the appraisal is complete, if the lender isn’t satisfied with the state or value of the property, you could lose your deposit. Now, what happens if you’d like to purchase a property that isn’t in the best condition? Being proactive includes knowing that there is a purchase plus improvements program that can allow you to buy a property and include some of the cost of the renovations in the mortgage. It’s not as simple as just increasing the mortgage amount and then getting the work done, there’s a process to follow, but it’s very doable. So if you have any questions about financing your next property or potentially using a purchase plus improvements to buy a property that needs a little work, please connect anytime. It would be a pleasure to walk you through the process.