Buying Your Next or Second Home

There's a home – and a mortgage – that's right for your life and budget. Here’s what you need to know.

Find out how to juggle the process of moving – and buying your next home.

How much can I afford for my next home?

When shopping for your next home, know how much you may be qualified to borrow for your new mortgage. Talk to your TD Bank loan officer to get prequalified and learn about your loan options.

  • To get prequalified, you will need to provide your basic debt, income and asset information; your loan officer will pull a credit report
  • By the end of your conversation with your loan officer, you'll know how much you prequalify for and how much home you can afford

How do I sell my current home to help pay for my new home?

If you plan to use money from the sale of your current home to finance the down payment for your next home, your real estate professional and loan officer can help with this process.

STEP 1: Before you list your home

Get your current home ready to show by getting rid of clutter and making small improvements, if necessary.

Work with a real estate professional to set a realistic asking price that will help you estimate your net proceeds from the sale.

Based on that estimate, your loan officer can work with you to estimate a possible down payment, as well as how much of a mortgage loan you may qualify for.

STEP 2: Once your house is under contract with an offer

If the net proceeds from the sale of your home are less than you estimated, you will want to speak with your loan officer to make any necessary adjustments in how much you can borrow for your new home.

Keep in mind that realtor fees, taxes and other expenses may decrease the amount you anticipate receiving from the sale of your home.

STEP 3: Coordinating your closings

The closing agent will coordinate both closings on the same day, including the transfer of funds from the sale of your current home to the purchase of your new home.

If your closings are not coordinated, your loan officer can help structure your new loan so you can carry two mortgages, if you qualify.

You've worked hard to make that second home a reality – find out how to reach your goal.

What do I need to know about buying a second home?

As an experienced homeowner, you already understand the financial aspects of owning a home. However, owning a second home can add other factors that you should consider:

  • Cost of upkeep of two homes – repairs, taxes, utilities, etc.
  • The impact of carrying two mortgages on your disposable income

A second home can also be a smart real estate investment if it provides a good rate of return when you sell. As you make your decisions about where to purchase and how much you are comfortable investing, it's a good idea to make sure you balance the excitement of owning a second home with the practical considerations.

The products and process for a second home mortgage loan is very similar to that for your primary residence. You can learn more about your best loan options and get a realistic price range for your search when you talk to your TD Bank loan officer to get prequalified.

  • To get prequalified, you will need to provide your basic debt, income and asset information; your loan officer will pull a credit report
  • By the end of your conversation with your loan officer, you'll know how much you prequalify for and how much home you can afford

Condos can be a popular choice for a second home. Since the value and marketability of condominium properties are dependent on items that don't apply to single-family homes, talk to your loan officer to see if the condo meets our lending guidelines.

What if I'm buying a second home to rent?

Receiving rental income from a second home is generally permitted provided you occupy the property for a set amount of time and follow any other required guidelines—your mortgage loan officer can help answer any questions you might have about requirements.

If rental income from your new purchase is used as part of the lending qualification, you'll need to secure a mortgage loan specifically designed for buying an investment property.

Learn more about buying an investment property

What if I live in a different state from my second home?

If your second home is in a different state, keep in mind that your lender must be authorized to lend in that state. TD Bank operates in 15 states from Maine to Florida – including New Jersey, South Carolina, New York and Massachusetts. Find a TD Bank near your property.

Additional considerations:

  • Documentation and closing procedures may vary from state-to-state, so work closely with your loan officer, real estate professional and closing agent
  • Be prepared to be present for both your property inspection and your closing
  • If you can't attend your property inspection, make sure you get the report and ask the inspector any questions
  • If you can't attend your closing, your loan officer can help you identify who can legally represent you

Online mortgage resources

Loans subject to credit approval. Offer subject to change or cancellation without notice. Equal housing Lender. 

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