Buying and Selling a Home at the Same Time? Here’s What You Need to Know About the Mortgage Side of Things

May 30

3 min read

If you’re thinking about upgrading your home, downsizing, or relocating, you’re probably asking yourself one big question: “How do I sell my current home and buy a new one at the same time—without it becoming a financial nightmare?”

This is one of the most common challenges we see at Swivel Mortgage Group, and the good news is: it’s totally doable with the right plan and advice. Let's break it down in a simple, stress-free way.

Step 1: Understand the Big Picture

Buying and selling a home at the same time can feel like a juggling act, especially when your current home’s equity is tied up in your next purchase. That’s why timing, financing, and flexibility are everything.

You’ll want to figure out:

When your current mortgage term ends
Whether you’re porting your mortgage or getting a new one
If you need bridge financing
How much equity you’ll walk away with from your sale

Option 1: Porting Your Mortgage

If you love your current mortgage (maybe you locked in a low rate or have great terms), you might be able to port it. That means you transfer your existing mortgage over to the new home.

Pros:

You keep your existing interest rate
Avoid penalties for breaking your mortgage
Potentially easier process with the same lender

Cons:

Timing has to line up exactly (usually within 30–90 days)
Your new home must meet lender approval
If your new home is more expensive, you may need a blend and extend mortgage (which means a new blended rate)

📌Porting isn’t always the best move, but it can be a great option—your Swivel broker can help you crunch the numbers.

Option 2: Break Your Mortgage and Get a New One

Sometimes, it makes more sense to break your existing mortgage and start fresh with a new one.

Here’s why you might go this route:

You want a better rate
You’re upsizing significantly
You need more flexibility in your mortgage

Watch out for:

Prepayment penalties (can be thousands of dollars)
Timing gaps between sale and purchase dates

➡️ A good mortgage broker will calculate the penalty for you and help you weigh it against potential savings from a better rate.

Bridge Financing: Your Temporary Lifeline

If you need the funds from your home sale to close your new home purchase—but the sale hasn’t closed yet—you may need bridge financing.

Think of it like a short-term loan that "bridges" the gap between the sale and the purchase.

You might need bridge financing if:

You’re closing on the new home before your current home sale finalizes
Your equity is tied up in the current home
You want to move quickly in a competitive market

📝 Bridge loans are usually available for 30–60 days and require a firm sale agreement on your current home.

Timing Considerations

Trying to buy and sell on the same day can be chaotic. It’s often safer to:

Close your purchase a few days after your sale closes (if your buyer agrees)
Get pre-approved well in advance so you know your budget
Work with a mortgage broker who coordinates both transactions and keeps everything moving smoothly

What Lenders Look At

When buying and selling at the same time, lenders look at:

Your income and debt-to-income ratio
Equity from your current home
Your credit score (ensure it’s strong—check both Equifax and TransUnion!)
Whether your purchase is conditional on the sale of your current home

✅ Tip: Lenders typically prefer a firm sale on your existing home before finalizing financing on the new one.

Final Thoughts: Don’t Go It Alone

This process can feel overwhelming, but that’s exactly why we’re here. At Swivel Mortgage Group, we guide you every step of the way—from calculating your equity, to understanding your mortgage options, to timing it all with as little stress as possible.