Next Home

If you plan on selling your home and buying a new one, your first move should be to look into your mortgage options. You need to consider your current mortgage of course, and the mortgage that you’ll need on your new house. If you are downsizing then there is no additional financing needed. But if you are ‘trading up’ and planning on having a bigger mortgage, you need to examine your options of taking or breaking your mortgage. It’s worth a professional mortgage analysis with one of our experienced planners to determine with option is the most beneficial to you.

Bringing your mortgage with you

Most mortgage today are portable, which means you can take your current interest rate and mortgage contract to your new home, subject of course to certain conditions like the amount of your mortgage. If you need a bigger mortgage, you can often “blend” your current mortgage rate with the mortgage rate on the additional funds you need.

Getting a new mortgage

If today’s interest rates are lower than your current mortgage rate, you might want to consider breaking your current mortgage and getting a new one for the total amount you need. To break your mortgage, your lender typically has the right to charge a penalty based on the greater of three months’ interest or interest rate differential (IRD), which is essentially the difference between your old rate and current rates of your remaining term. Our planners will help you compare your new blend/extend rate with the rate you would get with a new mortgage.

Keep in mind, too, that some mortgages are assumable, which means the buyer of your home assumes its mortgage (subject to meeting the financial requirements of your mortgage lender) and you will not have to pay a penalty.


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	Next Home If you plan on selling your home and buying a new one, your first move should be to look into your mortgage options. You need to consider your current mortgage of course, and the mortgage that you’ll need on your new house. If you are downsizing then there is no additional financing needed. But if you are ‘trading up’ and planning on having a bigger mortgage, you need to examine your options of taking or breaking your mortgage. It’s worth a professional mortgage analysis with one of our experienced planners to determine with option is the most beneficial to you. Bringing your mortgage with you Most mortgage today are portable, which means you can take your current interest rate and mortgage contract to your new home, subject of course to certain conditions like the amount of your mortgage. If you need a bigger mortgage, you can often “blend” your current mortgage rate with the mortgage rate on the additional funds you need. Getting a new mortgage If today’s interest rates are lower than your current mortgage rate, you might want to consider breaking your current mortgage and getting a new one for the total amount you need. To break your mortgage, your lender typically has the right to charge a penalty based on the greater of three months’ interest or interest rate differential (IRD), which is essentially the difference between your old rate and current rates of your remaining term. Our planners will help you compare your new blend/extend rate with the rate you would get with a new mortgage. Keep in mind, too, that some mortgages are assumable, which means the buyer of your home assumes its mortgage (subject to meeting the financial requirements of your mortgage lender) and you will not have to pay a penalty.
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