Buying Your Next Home

Buying your next home is exciting — whether you’re moving up, downsizing, or buying an investment property.
While the process shares similarities with buying your first home, there are new details and decisions to navigate.

Our team will guide you through every step — from calculating your down payment and bridging timelines to deciding whether to port or replace your current mortgage.
We make the process simple, organized, and stress-free while securing the best available rate and terms for your situation.

Things to Consider When Buying Your Next Home

If you're preparing to buy your next property, here are some of the key questions to think through:

• Will you keep your current home as a rental or investment property?
• Do you plan to sell first, buy first, or buy and sell simultaneously?
• Should you port your current mortgage or break it and get a new one?
• How much will you have available for your down payment after selling?
• Will you use all your proceeds for the purchase or hold some back for renovations or furnishings?

We’ll walk through each of these decisions together and design a mortgage strategy that fits your goals.

Down Payment

If you’re selling your home to buy another, your available down payment comes from your sale proceeds — minus any remaining mortgage balance, real-estate commissions, legal fees, and closing costs.

We’ll calculate this precisely for you with a custom “How Much Will I Have for Down Payment?” breakdown so you’ll know exactly what you’re working with before you start shopping.

If you plan to keep your current home and use it as a rental, we can explore refinancing it to access your equity for the new purchase.

Sample Document:

Minimum Down Payment

The minimum down payment for a primary residence in Canada is:

• 5% on the first $500,000 of the purchase price
• 10% on the portion from $500,000 to $1,499,999
• 20% for homes $1.5 million or more

Example: a $900,000 home requires $25,000 (5% of $500K) + $40,000 (10% of $400K) = $65,000 total.

Homes under $1.5 million can be insured, allowing less than 20% down. Homes $1.5 million and above must be conventional, requiring at least 20%.

If your next purchase is a rental or secondary property, 20% down is typically required regardless of price.

If you put less than 20% down, the mortgage will include default insurance (from CMHC, Sagen, or Canada Guaranty).
“Default” means missed payments — the insurance protects the lender, not the borrower, and the premium is added to your mortgage.

New for 2024: First-time buyers and purchasers of new construction can now qualify for insured 30-year amortizations, instead of the previous 25-year limit.
Even though this rule mainly helps first-time buyers, it can also apply if your new home is a newly built property.

Porting Your Mortgage

If you already have a mortgage and want to move, porting allows you to transfer your existing rate and terms to the new property — avoiding penalties for breaking your mortgage early.

In many cases, this is the most cost-effective route.
However, if today’s rates are significantly lower than your current one, it may make sense to break the mortgage, pay the penalty, and start fresh.
Sometimes the long-term savings from a lower rate outweigh the short-term penalty.

We’ll compare both options using your actual numbers so you can make a confident, informed decision.

If you’re upsizing, we can arrange a port and increase, where your new mortgage amount is larger. The lender will blend your existing rate with current rates to create a new blended rate.

Most lenders allow portability within 30 to 120 days between closings.
If timing doesn’t align perfectly, we can still make it work with bridge financing.

Bridge Financing

When your down payment is tied up in your current home but your new purchase closes first, bridge financing covers that short gap between closings.

It’s a short-term loan that allows you to own both properties for a few days or weeks — giving you time to move comfortably, paint, or renovate before you sell.

Most major lenders offer bridge loans up to the amount of your confirmed sale proceeds, usually for up to 90 days.
A firm sale agreement (no conditions) is required, and interest is charged only for the temporary bridge period.

Bridge financing makes transitions smoother and avoids the stress of same-day closings.

Maximum Purchase Price

Your maximum purchase price depends on:

• Your household income
• Your current debts and obligations
• Your down payment and amortization
• The type of property (owner-occupied vs. rental)

Once we review your application and supporting documents, we’ll provide a personalized pre-qualification outlining your maximum purchase price, estimated monthly payments, and rate options.

This gives you clear numbers to work with before you start viewing homes.

Documents Required

To get started, we’ll need:

• Proof of income (Letter of employment, recent paystub, past two years of T4s)
• Proof of down payment (recent bank or investment statements)
• Mortgage statements and property tax bills for any properties you currently own
• Government-issued identification

If self-employed, we’ll also request recent T1 Generals and Notices of Assessment or business financials.

The documents we need depend on your situation — we’ll provide a precise checklist once we review your application.

All documents can be emailed or uploaded securely for convenience.

Closing Costs

Closing costs typically range between 1% and 3% of the purchase price.
For insured mortgages, lenders require proof that you have at least 1.5% of the purchase price available for closing costs.

Typical items include:

• Legal fees and title insurance
• Land transfer tax (and rebates where applicable)
• Appraisal and inspection (if needed)
• Property tax and utility adjustments
• Fire/home insurance binder

We’ll provide you with a detailed closing-cost estimate specific to your purchase so there are no surprises.

How Much Money Can You Save with Dominion Lending Centres?

As one of Canada’s largest mortgage brokerages, Dominion Lending Centres gives you access to exclusive rate discounts and lender promotions that aren’t available directly through branches.

Over half of all Canadian mortgages are now arranged through brokers because of the savings, flexibility, and unbiased advice clients receive.

We compare all available lenders — banks, credit unions, and non-bank lenders — to find the best fit for your goals.
Sometimes, we can even secure a lower rate from your own bank than what they offer at the branch.

You also get personal service from an experienced mortgage broker who works for you — not the bank — and keeps you informed at every step.

Your next home is one of the biggest financial moves you’ll make.
Getting professional, unbiased advice makes sure you do it right.
It’s free, it’s easy, and it saves you time and money.

Take the Next Step Today

Start your next-home journey now by clicking Apply Now on this page.
You’ll complete a short, secure application that takes just a few minutes and won’t affect your credit.

Once submitted, we’ll review your details, confirm what you qualify for, and reach out with your personalized plan — including maximum purchase price, payment options, and strategy recommendations.

Prefer to talk first? Call us directly and we’ll walk through everything together.

Get started today and take the next step toward your new home with confidence.