What you will need to know.
Are you planning to transfer your mortgage to another property? If you’re trying to sell, chances are you still have a mortgage on the home you currently own. So what happens to your existing mortgage when you want to move on from your current home and purchase a new one?
Well, the reality is you still must repay the remaining mortgage balance, and this will need to be either paid off or transferred to your new home. You will also need to consider that since you are repaying your mortgage early, if you do not have an open mortgage, you may be required to pay a prepayment penalty.
Ask Your Lender
Here’s some information you should speak with your best mortgage rate lender about:
- What amount do I have remaining on my mortgage balance?
- Can the buyer assume or take over my mortgage? If so, what are the requirements for the buyer?
- Am I able to pay off the total mortgage balance? If so, is there a prepayment penalty?
- Can you transfer this mortgage to my new property?
Sometimes your lender will waive the penalty if you or the buyer takes out a new Canadian mortgage rate with them. Getting the answers to these questions in writing will avoid any unpleasant surprises later on.
Still have questions? Not a problem, speaking with a low mortgage rate specialist can help you determine what’s best for your personal situation. It’s free and there are no obligations.