Ontario Canada - if you have a mortgage, you can sell your property and pay off the mortgage. If you are in negative equity position, it would be a challenge as the bank would need to know how to get paid for the difference. If you ask the bank to foreclose you, then whatever the value of the home they would sell and try to recover the cost. Please email me at victor_catalan@centum.ca and I will research more on your condition. I am running blind here and am only making assumptions.

You can move your mortgage to the new property if the bank approved the amount. If the amount is the same and you do not need to increase the mortgage then you should have no problems moving the mortgage if bank approves the new property.

Hello Leigh, it sounds to me like you are selling your house and not buying another since you mentioned renting. Your existing mortgage will be paid out from the sale proceeds at the lawyers office. The rest of the funds will be given to you after all costs involved are paid. The biggest cost with regards to the mortgage will be the penalty to pay off your mortgage early. You will have either an "open" mortgage or a "closed" mortgage, and if you are not sure chances are you have a closed mortgage (Open mortgages carry larger interest rates and are not offered by lenders unless the client really needs one and asks for one). If you have an open mortgage there is no penalty. If you have a closed mortgage you will be charged either 3 months interest penalty or the Interest Rate Differential (IRD). You can check which one your mortgage is subject to by reviewing the mortgage papers you received when you set up your mortgage. 3 months penalty is self explanatory and is relatively small. IRD is a calculation that can be very high if the current market rates are lower than your current mortgage rate. I would love to give you more information and do some calculations regarding your specific situation if you like, no obligation. Please do not hesitate to contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.