There is new ground to navigate within this second phase that you didn’t
encounter during the first. For instance, figuring out how to sell your first home and
the fact that you will need to get a down payment together and do not qualify for the
rebates or programs that were available last time. On the plus side, you might already
know some realtors that you will want to work with for your home sale and home
search.
When you were buying your current home, you might have had to scrounge to find the money
for a down payment. When buying a second home, that might not be necessary. That’s
because you won’t just have equity in your home from your first down payment but,
depending on how long you’ve owned your home and the market, you could also have
paid off a significant chunk of your mortgage or your home might have increased in
value.
That could be enough to pay a 20 percent deposit on your next place – which would
mean that you could forgo costly mortgage insurance and save money. Of course, if you
are buying a home that’s significantly more expensive then you might still need to
borrow a little and pay for the mortgage insurance. It just depends on what kind of home
you’re looking for and what your current mortgage and financial situation look
like.