You’ve finally found the home of your dreams. There’s just one problem: you haven’t managed to sell your current home yet. What to do? We’ve written this article in the hope of helping you figure out how to move while your home is still unsold in Quebec.
When you’re trying to buy and sell at the same time, moving can be complicated. If you want to take out a second loan, there are certain criteria you need to meet.
How to move while your home is still unsold in Quebec
To be approved for a second loan, you must meet certain criteria.
Among other things, you’ll need a good reason to move immediately, not after your house has been sold. For example, you may be moving because your family is growing, you’re getting divorced or you need to relocate for work.
There are more criteria you need to meet. Do your research before you think you’re eligible for a second loan.
Borrowing from your family is another option, but be sure to get it in writing.
Sign a contract stipulating that you will repay the loan in full as soon as your first home is sold. If you borrow money from your family, make sure the terms are clearly defined and respected.
If you feel that your relationships with your family members could be damaged by monetary issues, you should probably opt for another of the options described in this article.
A bridging loan, also known as a prêt relais, allows you to combine the payment of two mortgages.
This type of loan combines your two mortgages. You’ll have just one payment to make, at a single interest rate. These loans are often useful on a short-term basis, and can last from 90 days to 12 months.
Each lender has different criteria, but generally an excellent credit rating is required, and your financing request must be for a maximum of 80% of the value of both homes combined.
Rent the house to the owner of the second house for a few months.
Depending on his situation, the seller may be interested in staying in his home while he stores for a new one. If you’re trying to pay off two mortgages at once, this could be a big help.
Offer to conclude the purchase of the new house on condition that yours is sold.
If your home has just been advertised on the market and you ask a reasonable price, it should sell in no time. Discuss this with the owner of the second home when you make an offer. Reassure him that the sale will not be delayed and that you are committed to closing by a certain date.
