Most people in London and St. Thomas who buy a bigger home — or a smaller one — have to sell the home they're in at the same time. It's the hardest move in residential real estate to time, because two deals, two sets of conditions and two closing dates all have to line up. Here's how the options actually work in Ontario, and how to choose between them.
Selling and Buying at the Same Time?
Start with a free valuation and a plan for the order
548 490 4577Option 1: Sell first
Selling first is the lower-risk order. Once your sale is firm, you know exactly how much equity you have, your lender can finalize your next mortgage, and there's no chance of owning two homes. The cost is timing: if the right next home doesn't appear before your closing date, you're looking at a short-term rental, a stay with family, or storage. The way to soften that is to negotiate a longer closing when you sell — if the buyer can accommodate it — so your search has room to breathe.
Option 2: Buy first
Buying first means you only move once and you can compete with a firm offer on the home you want. The risk is carrying two properties if your current home takes longer to sell than expected, or sells for less than you planned around. It works best when homes like yours are selling quickly, your equity is substantial, and your lender has confirmed in advance how an overlap would be financed. It is not a strategy to use on optimism alone.
Option 3: Buy with a condition on the sale of your home
A sale-of-property condition makes your purchase firm only once your current home sells within a set number of days. Sellers who accept one usually add an escape clause: if another buyer comes along, you get a short window — commonly 24 to 72 hours — to remove your condition or step aside. It protects you from owning two homes, but it makes your offer noticeably weaker. Expect it to work on homes that have been on the market for a while, and to be ignored in a multiple-offer situation.
Option 4: List under a guaranteed sale program
A guaranteed sale program settles the uncertainty on the selling side. Under my Guaranteed Sale Program, we agree on a price and closing date for your home before you list; if it doesn't sell on those terms, I buy it. That means you can shop for your next home knowing your current one has an exit. Terms apply, and it isn't intended to solicit sellers already under contract with another brokerage — ask for the full written details for your home.
The financing tools that make the timing work
Three tools come up in almost every move-up or downsizing plan. Porting lets you move your existing mortgage rate and balance to the new home, which can avoid a prepayment penalty — usually within a set window and subject to requalifying. If you need to borrow more, lenders typically blend your existing rate with the current rate on the extra amount. Bridge financing is a short-term loan that lets you use your current home's equity before its sale closes, most often to fund a down payment when the purchase closes first; most lenders require a firm sale agreement before they'll approve it. Ask your lender about all three before you list, not after you've signed an offer.
The costs people forget to budget for
Land transfer tax is the big one. On a second purchase there's no first-time buyer rebate, so Ontario land transfer tax on a $700,000 home is about $10,475. London and St. Thomas add no municipal land transfer tax on top, which helps, but it still needs to come out of your equity. Add a prepayment penalty if you break your mortgage rather than port it, two sets of legal fees, moving costs, and any bridge interest or doubled carrying costs during an overlap.
Lining up the two closing dates
Same-day closings are common in Ontario, and they're efficient: the sale proceeds flow through your lawyer to fund the purchase that afternoon. But they leave no margin. If anything delays the money on the sale side, the purchase waits too — with movers booked and keys on hold. Closing the purchase a few days after the sale, covered by bridge financing if needed, gives you time to move and clean. Whatever gap you choose, have your lawyer and lender approve it before it goes into an offer.
London or St. Thomas: does the city change the order?
Less than you'd think. The right order depends mostly on how quickly homes like yours are selling in your specific pocket and price range right now, not on the city. A well-priced family home in a sought-after London neighbourhood and an entry-level home in St. Thomas that draws buyers from London can both move quickly, while a more unusual property in either city can sit. Before recommending an order, I pull recent sales for your exact type of home and area.
Frequently asked questions
Can I buy a house before selling mine in Ontario?
Yes. You can make a firm offer before your home sells, or make an offer conditional on the sale of your home. A firm offer is stronger, but it commits you to closing whether or not your current home has sold, so confirm with your lender how you would finance both properties if the sale takes longer than planned.
What happens if my house hasn't sold when my purchase closes?
You are still obligated to close the purchase. Bridge financing usually isn't available without a firm sale, so buyers in that position generally need a lender-approved plan to carry both properties, such as using existing home equity, until the first home sells. This is the scenario to plan for before you buy first, not after.
What is an escape clause in a real estate offer?
It's a clause a seller adds when accepting an offer that's conditional on the sale of the buyer's home. If the seller receives another acceptable offer, the first buyer gets a short, set period to remove the sale condition and firm up, or the seller can accept the other offer.
Is it better to use one agent for both the sale and the purchase?
It's usually simpler. When one agent handles both sides of your move, the closing dates, conditions and deposits in the two agreements can be negotiated to fit each other, instead of two agents each optimizing their own deal. You can use two different agents, but someone still has to coordinate the timing.
