There are a couple of options for the down payment for the purchase. You can use other investment assets if available, potential borrow from a friend or family member or use the Equity in your existing home by way of a Secured Line of Credit. A secured line of credit can be added to your existing home for the down payment. When you do eventually sell the home you then pay down the line of credit which is completely open.
I have implemented the secured line of credit strategy for a lot of my clients, so If things are not going to plan when trying to sell your home do not panic! We have options.
In my experience it is best to look at all the possible scenarios when setting up your mortgage pre-approval for the purchase, so you are prepared. This will give you a piece of mind that you have a back up plan if needed
It typically takes two different lenders to implement this strategy, one for the line of credit refinance and one for the purchase mortgage so therefore another advantage to working with a mortgage broker who can access both lenders at the same time.
Contact me to find out more and to discuss a lending strategy for YOU.