How Emma and Alex Bought a New Home Across Provinces

Emma and Alex’s Home Purchase: A Deal Summary

Emma and Alex were relocating from Quebec to British Columbia because Alex had accepted a new, high-paying job. They wanted to buy a new home in BC while selling their current property in Quebec.

But their BC purchase depended on selling their Quebec home, which hadn’t received an offer after a month on the market. They also faced a timing gap between the two transactions and legal complexities due to provincial differences.

Here’s how we made it happen…

Current Situation: Relocating from Quebec to British Columbia

Emma and Alex planned to settle in Langford, BC, for Alex’s new job, which offered a much higher income. Their goal was to purchase a home while selling their Quebec property. However, Emma did not yet have a job lined up, adding some complexity to the file.

Challenges When Buying a New Home In Another Province: Timing, Financing, and Legal Complexities

1. Sale Contingency:
   The BC property sellers accepted an offer contingent on the sale of Emma and Alex’s home in Quebec, but their property had been on the market for over a month without offers.
2. Bridge Financing:
   The Quebec home’s closing date was after the completion date for their new BC property, leaving a gap that required additional funding to cover.
3. Holiday Closing Date:
   Their closing date of January 3rd posed challenges because many legal and banking services were limited during the holiday season.
4. Provincial Legal Differences:
   Quebec real estate law required their Quebec lawyer to handle the mortgage discharge, creating extra steps in the process.

Solutions for Overcoming Financing and Legal Challenges

Bridge Financing to Cover Timeline Gaps

After a detailed review, we secured bridge financing to cover the time between the purchase of the BC home and the sale of their Quebec property. This allowed them to move forward without financial disruptions.

Resolving Provincial Legal Differences for a Smooth Transaction

We worked closely with the Quebec lawyer, the BC lawyer, and the lender to ensure the mortgage discharge followed Quebec regulations. Updated lender instructions ensured compliance, and the transaction was completed without delays.

Property and Financial Details

New Home in Langford, BC

• Purchase Price: $860,000
• Deposit: $50,000
• Strata Fee: $283.11/month
• Property Taxes: $3,631/year
• Contingency Reserve Fund: $52,906.20

Existing Home Sale in Quebec City, QC

• Sale Price: $699,000
• Mortgage Balance: $353,000

Challenges and Solutions: A Closer Look

Handling Sale Contingencies Under Tight Timelines

The subject to financing condition on the BC home was critical. Without an offer on their Quebec property, they risked losing the BC home. After reviewing the file with eight lenders, we found a back up financing solution that assumed they didn’t sell the existing property. This gave them the confidence to remove subjects.

Coordinating a Holiday Closing Date with Lenders and Lawyers

The January 3rd closing date required careful planning due to limited availability during the holidays. By staying in constant contact with all parties, we ensured everything was completed on time.

Conclusion: A Successful Home Purchase with Bridge Financing

Despite facing multiple challenges, Emma and Alex successfully purchased their new home in Langford, BC. With bridge financing and coordinated legal efforts, they completed the transaction smoothly. Their new mortgage structure aligns with their financial priorities, setting them up for success in their new home.

If you’re navigating a complex home purchase, especially one involving multiple provinces or timelines, schedule a strategy session today to learn how we can help you secure the best financing solution.