Selling your home and arranging the next mortgage are related decisions. Before setting a budget, find out what happens to the mortgage you already have.
1. Request the current mortgage details
Locate the term end date, outstanding balance and the relevant contract conditions. Ask your lender for a dated estimate if you may pay it out early.
2. Explore the options without assuming eligibility
Ask whether portability is available for your proposed move and what approval, timing or property requirements apply. A feature in the contract does not by itself confirm that your next transaction qualifies.
3. Put both transactions on a timeline
Mark the sale, purchase, deposit and completion dates. Review any gap in funds with your mortgage professional and lawyer before relying on the expected sale proceeds.
Questions to bring to our conversation
- What would it cost to end my current mortgage?
- Can the existing mortgage be used for my specific move?
- What if the sale closes after the purchase?
Further reading: FCAC: Prepayment penalties. General information; lender requirements and individual circumstances vary.