There will be penalty if you break a mortgage contract. Usually banks charge 3 month interest as a penalty for breaking the mortgage.

Hello Felton. If you sell your property before the mortgage term is up your options are limited. You either have to port the mortgage to another property that you purchased. Thereby honoring your original mortgage agreement and saving the cost of the penalty for early pre-payment. Or if you are not buying another property that penalty will have to be paid to the lender. Asking the bank to waive part of all of the penalty almost never gets approved but it is worth asking and if you have enough business with the bank that they are afraid to lose they may consider doing something for you. I hope this helps, if there are any questions you or another reader would like to discuss 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 many Banks/Lenders across Canada and have been in the industry for over 11 years.

This is what you call bridge financing to allow for the purchase of the new house. Unless your old house is selling or closing at a specific date, they will not fund the new house. In the meantime you would have 2 mortgages, 1 for the new property - with interest only payments (bridge) and one for the old - full P I. It is always prudent to sell first before buying as this creates additional cost. You can also rent one of the properties if you plan to keep it longer.

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I have a house that needs about $40,000 of repairs done, but the mortgage is too high for me to pay it. so i've been talking with the bank and they said that they are looking at lowering my monthly rate, forgiving $60,000 and loaning me the money to fix up the house. i will know in the next month if they can do that for me. the only problem is that i put the house on the market a couple of months ago and now someone is offering to buy it for the asking price. my asking price is $689, but if i wait and do the repairs, it will be $800. if i repair and wait for the market to recover, it will be worth $1.3mil. should i turn down this offer on the house and wait for the bank to get back to me. my real estate agent told me that i should take this offer now because i will never be offered the asking price again, but she has been really flakey when it comes to the price, so i don't feel that i can trust her. what should i do? should i sell or should i wait.

The question you need to answer is can you wait? Generally speaking, we are close to the bottom. Of course some markets are closer to it than others. But if you can wait it out the market value of your home will go up, maybe not to the amount it was at during the market peak, but higher than it is at right now. Plus homes at the higher end of the market tend to be more sensitive to changes in the market. They will increase more in value during seller markets and decrease faster during buyer markets.

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You are with someone for over two years, you have been engaged since jan of this year. you lived together for a year in an apt (both names on it) you have a child with this person and your expecting number 2. now the other person wants to purchase a house at this point. but the catch is they want it in there name only. would you agree to this situation? the one is coming up with the down payment themselves (& that is their decision , despite the fact the other person is more then willing to help). when confronted… we’ll call them person a said that financially it doesn’t make sense for both to be on the mortgage, as neither one has the best credit score. person a also feels it’s a financial commitment that they would be locked into and if things don’t work out, it will be a messy separation. person a feels that they are more entitled to getting this house as they have been at their job longer and has the finical backing (credit wise and paycheck wise) and has earned the ability to get a house while person b is just trying to ride the train for free so to say. person b is completely at a loss for what to do. to person b it’s not even like that, its not riding any train for free..they don’t feel “entitled”, they feel like if they are getting married & having another, shouldn’t they be doing this together? person a feels that after a few years they can seel this house and get a house together, but this is after they are married and after the other persons credit score is at a better place. so based on what i have told you, does it seem like person a is really looking out for the “family” or just themselves? would you move in with someone who is not willing to put your name on the mortgage for reasons i have mentioned, or does that seem like a keeping my options open type deal? i mean is person b going into it with same mind set that they aren’t going to make it?--> bc really whats the big of not having your name on the mortgage if your planning on being with this person forever? && is it better to not have your name on the mortgage if things go wrong? perosn b will have no financial obligations to person a if they break up, and person a would be stuck paying the bills alone. it makes sense to me to a certian degree... i think i wouldnt have such a problem if i felt that really he thinks its the smartest decision to get the mortgage solely in his name. like i know if both names go on the mortgage, they combine the credit score and take the median... and that score affects if you can even get a mortgage , for how much you can get it and what the percentage rate will be. but i was just curious how other people would view the situation... && im curious to know if your opinion would change if you didnt assume the guy was the one putting their name on the mortgage.... && i dont knwo if it matters, but both people work.

We are parents of two sons, 25 and 27. We are in Real Estate for 30 years. I am sorry to inform you but you should not be on the mortgage unless you are married. The reason is that thing get extremely complicated in the case of a split. Also, if either one is not contributing equally to all the home expenses it gets more complicated if it goes to court in a split. By you not being on the mortgage you are not responsible for the bill which actually can be good for you and your kids if you split somewhere before you marry. Both persons credit and buying power and renting power if damaged if payments are missed for whatever reason. Lets just say he misses payments and you get foreclosed. If you are on the mortgage it goes against you too. Now you have two kids you must move out and find a rental. If it difficult to find a rental or get credit with this against you. When not married you are protecting your kids by not being on the mortgage or owner. Once you marry it naturally becomes your too. If your relationship is on shaky ground, better only one carries the note (him). This releases you to move on and he still has to pay child support. Yes, I can understand how this looks selfish but realistically it is best for you and him. No one actually owns the home until it is paid off in 20 or 30 years, instead it is a noose around your neck until it is paid for or sold. It can actually hold you back from making changes in your life. Sit down and talk about this and get professional advice. If you are not committed to each other now then marriage and babies will not help mend your relationship. If you must have a contract write one up between you and him as to what you expect. And if he gets the home in his name let him pay the bills as he should be taking care of you and the kids anyway. Don't burden youself at this time in your life. Good Luck