The Catch-22 of Upsizing

Why buying your next home can feel stuck before it even starts.  You find a home you love… and then realize you’re not ready to move yet.

We see this all the time.

You want to buy your next home, but you still need to sell your current one. That’s where things start to feel stuck.  We had a great conversation this week with Angela Hainsworth, RBC Mobile Mortgage Specialist here in Brandon. This came up right away. A lot of families are in the same spot.

That’s the catch-22 of Upsizing. 

Step 1: Get clear before you start

Before you look at homes, you need a plan.  Angela walked through what a pre-approval really looks like. It starts with a simple conversation about your income, your down payment, and your credit.  From there, everything gets put together so you know what you can afford.  One important detail. Your rate is usually held for 120 days. But only if nothing changes.

If you take on new debt, like a car, it can change your approval. This is where we see people get caught off guard. Do not make and major changes to your credit once you have your pre-approval.  

Step 2: Understand your down payment

This part is simple, but it matters.  If you have less than 20 percent down, default insurance is required. If you have 20 percent or more, you don’t need it.  That insurance gets added to your mortgage and is provided through companies such as CMHC or Genworth.. You don’t pay it upfront.

There may also be programs that can help. For example, the Manitoba Métis Federation may help with part of your down payment and some closing costs.

Step 3: Where the catch-22 really shows up

This is where things get tricky.  You need to buy. But you also need to sell. And in a competitive market, timing matters.  There isn’t one perfect solution here. These are just different ways people work through the gap.

Some buyers choose to sell first, with a condition on their offer. This protects them, but it can make it harder to compete. 

Some keep their home as a rental. A market rent report can be created, and up to 80 percent of that rent may be used to help with approval.

Others use their equity by refinancing their current home to access a down payment.

And in some cases, a co-signer can help, usually a parent with strong income and low debt.

This is the part most people don’t see coming.

Step 4: Be ready for this reality

You might own two homes at the same time.  Even if it’s just for a short time.  This is where a lot of the stress comes from. Not the move itself, but the overlap.  That’s why this needs a plan, not guesswork.

Step 5: Small detail, big impact

If you’re thinking about selling soon, how your mortgage is set up matters more than most people think.  Angela mentioned that a variable or open mortgage can help avoid penalties when you sell.  It’s a small detail, but it can make a big difference later.

Most of the stress doesn’t come from the move itself.  It comes from not knowing your options, trying to figure it out under pressure, and making big decisions without a plan.

When you slow it down and get clear first, everything feels easier.  That’s the goal behind how we guide our clients. A clear plan. Less pressure. Everything working together.

If you’re thinking about upsizing, you don’t need to rush.  You just need clarity.

If you want help mapping it out, reach out anytime.

We’re always here to help.