Advice needed on buying new home with two existing mortgages and homes
Life changed and I got married
- wife has a 240K mortgage term ending October 2015 with TD on a condo. We currently live here
- I have a mortgage amount of 210K on a $360K approx market value condo with term ending May 2016 with CIBC.
I want to buy a house now for 700K and I need a downpayment of 140K (20%)
Problem 1 is I don't have the full cash for the down payment.
If we sell the wife's condo do I have to plan the closing dates so that I can port my mortgage over to the new property if I don't want to cancel and pay penalty? I understand I may need to apply for bridge financing if we buy before we sell. But how can you get approved bridge financing without a firm sale? If I like and want to offer on a house I won't have the down payment unless existing wife's condo is sold so we should really sell the condo first before we can look to buy a place? Then get bridge financing?
To address the lack of funds, what if I refinance my condo for 80% of the appraised value @ 360K so I can take $72K to help with downpayment? I will then get a blended rate and NOT extend the term? And then continue renting condo and wait until mortgage term ends in May 2016 and get an open mortgage and sell the condo then? I believe CIBC said they would waive the appraisal fees plus another fee in the interest of winning my future mortgage business on the new home.
Then I would have enough for a down payment and not be stressed about quickly finding a buyer for the wife's condo.
Does this sound reasonable? I'm just not sure what people do when they want to upgrade to a larger home while still in a closed term mortgage i.e sell first and then quickly buy ASAP or try buy first then list exisitng home on the market? To buy first I would need a down payment and hence I thought about refinancing my mortgage.
Thanks very much for any advice. I started sending these questions to my CIBC financial advisor but I wanted to get more advice from the smart people here.
- wife has a 240K mortgage term ending October 2015 with TD on a condo. We currently live here
- I have a mortgage amount of 210K on a $360K approx market value condo with term ending May 2016 with CIBC.
I want to buy a house now for 700K and I need a downpayment of 140K (20%)
Problem 1 is I don't have the full cash for the down payment.
If we sell the wife's condo do I have to plan the closing dates so that I can port my mortgage over to the new property if I don't want to cancel and pay penalty? I understand I may need to apply for bridge financing if we buy before we sell. But how can you get approved bridge financing without a firm sale? If I like and want to offer on a house I won't have the down payment unless existing wife's condo is sold so we should really sell the condo first before we can look to buy a place? Then get bridge financing?
To address the lack of funds, what if I refinance my condo for 80% of the appraised value @ 360K so I can take $72K to help with downpayment? I will then get a blended rate and NOT extend the term? And then continue renting condo and wait until mortgage term ends in May 2016 and get an open mortgage and sell the condo then? I believe CIBC said they would waive the appraisal fees plus another fee in the interest of winning my future mortgage business on the new home.
Then I would have enough for a down payment and not be stressed about quickly finding a buyer for the wife's condo.
Does this sound reasonable? I'm just not sure what people do when they want to upgrade to a larger home while still in a closed term mortgage i.e sell first and then quickly buy ASAP or try buy first then list exisitng home on the market? To buy first I would need a down payment and hence I thought about refinancing my mortgage.
Thanks very much for any advice. I started sending these questions to my CIBC financial advisor but I wanted to get more advice from the smart people here.