Posted to Shearwater: buying before the last house closes

Illustrative example

The situation

Location

Eastern Passage, Halifax Regional Municipality

Borrower

A Regular Force member posted to 12 Wing Shearwater, with a spouse working remotely and two children

Income

$96,000 basic pay plus a $48,000 T4; $144,000 household

Credit

Both mid-700s; one car loan of $390 a month

Purchase price

$520,000

Down payment

$135,000

Mortgage

$385,000

Payment at 4.45%

$2,120 a month

The challenge

A posting message to 12 Wing Shearwater with a change-of-strength date 30 days before the buyers of the family’s Petawawa house could close. The house hunting trip gave 5 days to find and secure a home in Eastern Passage or Cole Harbour. Their down payment was in the Ontario house, and the deed transfer tax and the deposit had to come from cash.

What the lender looked at

• Regular Force basic pay as salaried income from the pay statement, plus the spouse’s T4; allowances assessed one by one on whether they continue at the new location.
• A firm, unconditional sale in Petawawa, because a firm, unconditional sale on the home you are selling — an accepted offer with conditions still on it is not enough for most lenders.
• At 26% down the mortgage is uninsured and qualified at the greater of the contract rate plus 2% and 5.25%: $2,567 a month, 26% of the $144,000 household income with tax and heat.
• The bridge is secured against the Petawawa house and repaid from its proceeds; under CAFRD 8.3.07, Bridge financing and lines of credit, the directive reimburses interest costs and the associated administration fees charged by the financial institution, for the duration that the proceeds of the sale are unavailable, on the portion of the short-term financing not exceeding the sale proceeds.
• Porting the existing mortgage rate from Petawawa avoided a prepayment charge; the increase to the new balance was blended at current pricing.

What was done

The pre-approval was completed before the house hunting trip, so the offer in Eastern Passage went in firm on financing on day three of the 5. The lender approved the $385,000 mortgage with the down payment shown as sale proceeds and a $135,000 bridge for 30 days, and the bridge interest and set-up fee were documented for the relocation claim.

The outcome

Illustrative outcome: a $385,000 mortgage over 25 years at 4.45% (chartered-bank prime rate, Bank of Canada, 2026-09-16), about $2,120 a month. The bridge was advanced on the Eastern Passage closing and repaid 30 days later from the Petawawa proceeds; its interest and administration fee were claimed under CAFRD 8.3.07. Cash from savings on closing day: $7,800 of deed transfer tax and legal fees.