Hello Lemuel. If you are selling and buying porting your mortgage is one of your options. Porting is the process of moving your mortgage from one property to another. There are 3 different types of ports that can happen when you sell a home and buy another. Each one different. Your mortgage can be either a straight port, port-increase, or port-decrease. The simplest is the straight port where you are moving your mortgage from one property to another with the same amount of mortgage. The rate, remaining term, and amount stay the same, no penalties involved and the process is straightforward as there is no new money involved. The second option is a port increase where you need extra funds for the new home, (this is usually the case if you are buying a more expensive home and have less down payment) In this case the remaining mortgage term is moved to the new property, the mortgage amount is increased and finally the interest rate is blended with today`s available rates. If the rates available today are lower than your interest rate then your rate will be blended and reduced, if the rates are higher today your rate will be blended and increased. I can do a rough calculation for you if you like, see my contact info at the bottom of the reply. The final port is the port-decrease. In this case you need less mortgage than the remaining mortgage amount you currently have. Your mortgage term, and rate get moved to the new property only the mortgage amount is reduced. There may be a penalty involved in this reduction of mortgage. If you are reducing your mortgage amount by greater than the allowable yearly prepayment options that you have signed for on your mortgage documents you may be charged a penalty for the extra reduction. There is one more option that one can consider, if your bank is not going to offer you a good rate on your port (they already got you so they often don`t) then you can always consider a new mortgage at another lender at full discount. It may save you more than your penalty to break, the calculations often tell the tale if it is worth it. I can do these calculations for you if you like and get you information on the lowest rates available today. I hope this information has helped you Lemuel. I can go into more detail if you like, explain further, and do some rough calculations, no obligation if you like. Please don`t hesitate to contact me:Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

Hello Monty, selling your house will mean your mortgage will have be paid off. In that case your mortgage should be ported to another property to avoid penalty. If there is no other property involved and your mortgage will just end up being paid off you could make one of your yearly pre-payment to help reduce your penalty. Most lenders will take into account any unused pre-payment privilege anyways so check with them before you go to your savings or investments to make that pre-payment. I hope this helps, if you would like to discuss anything in detail 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 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

As long as there is not too much time between the sale of your existing home and the purchase of the new home most lenders will allow you to port the mortgage. In other-words you keep your existing mortgage and add the extra funds you need to buy the new house on top. The interest rate is a blend between what you have already and the rate at the time for the extra money you need. Now you have one mortgage amount, a blended rate, one mortgage payment and a new house!! -Abraham Niyazi - Easyrate.ca x 115

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If i want to sell a house before my mortgage is up for renewal, approximately how much will the bank charge me to cancel the mortgage before my term is up? (canada if that helps)

You need to read your mortgage contract. If there is no penalty for early payoff, there will be no fees. When you sell a house, you don't really "cancel" the mortgage, you use the proceeds from the sale to pay off the mortgage. You get to keep the rest as profit. If you don't get enough from the sale to pay off the mortgage, you will need to continue making payments until it's paid off.

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We gave verbal instruction upon receiving a letter last spring stating that our mortgage would be rolled over into a 6 month closed term. i called and told them no, that we wanted it open because we might sell, refinance or what ever, and they said that's ok they would make it open. so now, we've had our offer to purchase accepted at a new home and arranged for refinancing with another company on the current one to borrow against it and are moving out and have tenants moving in oct. 1. i just got a call from our mortgage specialist (not the original company from 7 years - but the new one), that the old company won't let us pay it out because it is fixed closed and because we aren't selling the old home. they say we have to wait until nov. 21 - 1 month and 20 days after our closing - to make these changes. what the heck? i've been trying to communicate with the mortgage company but am on the "call-back" list because the front line people have no power to do anything. i want to move the renewal date up to this week and pay it out, even if - and there are - penalties. i've never heard of this? have you? anyone have experience with this and what did you do to get out of it?

I'm not sure of your question. Is this loan a home equity line of credit and you wanted to use the equity line to purchase a new home??? And then rent the old one. Here is the problem. The bank is being very smart in this. People are buying new homes, using equity in the old one and telling the old house mortgage company (and the new lender on the new place) that they are going to rent the old house so that they can qualify for the new mortgage. Then after settlement, they just walk away from the old house. Your bank is trying to protect themselves from this.

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With bush in office, and who appears to be so determined to ruin our econemy by his actions of an un-neccessary war, out of control gas prices (no wonder!!! he owns and is actively involved and is financially affected by whatever happens with gas prices) for which he can affect personal gain. since greenspan left office, we are all vulnerable to our self serving selfish president. i want to sell my home, and other investment properties, but feel trapped/stuck; because, everyone i have encountered feels as un-certain as i do, and affraid to make any long term commitments to mortgages, for fear of not seeing the end result of what our embarasement of president is going to do next to line his pockets and fulfill his own self needs. i want to invest into canada or mexico. not comfortable investing in the us any longer. back to my question....how do i sell my real estate in a country with such an un-certain future???

Find a sucker to buy them. It's just like the stock market, someone HAS to lose.

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Ottawa - mounting governmental and household debt are posing new risks to the stability of financial systems, the bank of canada said thursday in its most recent analysis. the central bank's semi-annual "financial system review" finds that overall conditions have improved in the short term since it last reported in june.but it adds that record-high debt by canadian households pose an elevated medium-term risk if a second financial or economic shock were to materialize. bank of canada governor mark carney has warned in the past about canadians getting in over their heads with large mortgage commitments that don't appear problematic given today's low interest rates. if the government is worried about the general public- 1. they would not impose new taxes e.g. house taxes, hst and other taxes, 2. would control increase in auto insurance what they always made false promises during elections, 3. would control increase toll on 407 which was the property of the canadian people and sold to their sweethearts.4. they would never increase their pay by 25% without public opinion. usually canadians are too busy to earn their bread and butter that they do not have time to oppose government's decision. even if we oppose nothing would happen. love you canada. o canada, o canada

The household debt is Canada is high but our economy is in better shape than US or EU countries. Our banks are solid and real estate prices are rising. We do not have high unemployment, bankruptcies, foreclosures, bank failures or TARP as in US. The lower interest rates are giving the consumers incentive to get loans to buy property and consumer goods.

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Ok, so i asked this question earlier but i did not make myself clear enough on one item as i had a lot of responses stating that i should not sell my home in this unstable market...which is true as i dont want to sell right now either. think about my question as if i was selling during a strong & solid sellers market. thanks to all that answered before and to those of you for your incoming insight. scott in canada: ok, so here is the issue at hand... i own a townhome in the province of bc which would sell today at 250k (this price is in tune with the current downturn in property value) this home is completely paid for ie mortgage free. i currently rent this bc property out i also own a condo in alberta (where i live) and owe $310k to the bank with a 5.04% fixed interest rate. the question is do i sell the rental in bc and take the 250k i would make and pay off the majority of what remains on the ab property which would leave me with only 60k to pay off? i plan on living for the next few years in ab and while having a long term rental property is great, i question what i will lose in interest payments if i keep both. what would you do?

Personally with today's economy if I could would sell it and get as far out of debt as I could in the long term think you would be better served. To much uncertainty in the market and the worlds economy. THink long term security. If renter leaves you are stuck at least with the taxes and upkeep (heat)

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I've had perfect credit since i was a teenager. last year we opened a business and it has failed miserably. we have tried selling it with no luck as the lease is too high. we just lowered the price dramatically but my lawyer says only give it a few weeks at the low price then i'll have to file personal bankruptcy. it makes me sad but i have no choice. only i am filing, not my husband. most of our debts are in both of our names which will transfer to him. but, the store lease, our back store rent, my credit cards and some of my student loan could go into the bankruptcy. i will be bankrupt for 9 months and then discharged. it will be on my file for 6 years after discharge. i'm in canada. i'm scared that it will affect our home as when it comes up for renewal my husband may not qualify on his own. do you have to requalify at every mortgage renewal or are you safe for the 25 year term as long as you pay every month? we have 5 children and i just need some peace of mind.

I counsel individuals with their finances and I hate recommending filing bankruptcy. I would lower the price even more. Do you have an agent trying to sell it for you? If you don't, you need to get one. If you have one, you might need to find a different one that will market it more aggressively. It sounds like you might need to take on some odd jobs to make some extra cash temporarly. What is your lease secured by? If you don't have to fear losing your home or car or something, I would only pay what I COULD pay each month on the lease and let it get a little bit behind. It will beat up ur credit a little bit, but bankruptcy will DESTROY ur credit. So if you don't have to fear really losing anything, I would talk with the person in charge of your lease and let them know about ur financial situation. If you communicate with them and tell them what u can pay, they might work with u. If they won't, then still just pay what u can. If they try to sue you for the money or take your business or something, you can always file bankruptcy at THAT time and it will keep them from taking any of ur assets as long as ur in the bankruptcy. If you would like more info on the topic, I would love to answer more of your questions, click the link below to go to my counseling website. I currently offer my advice for FREE because i love helping people with finances. Hope that helps http://www.financialgym.org/question.htm