View Full Version : Penalties for seling and paying out Mortgage?

07-23-2006, 05:21 PM
I have the oppurtunity to capatilize on the current calgary market, but have a few questions. If I were to sell my house right now current market value would be more than double (almost triple) what I owe on it. What kind of penalty would you pay if you did not take another mortgage? I already own 5 acres with a mobile home in BC( I owe nothing on this property), and would likely cash out, move there and pile the excess into RRSP's. What is the best approach, I figure I should come out 100- 150K on top, I would likely put 25-50K into the other property and invest the remainder.

07-23-2006, 05:24 PM
For your mortgage you would have the interest differential or 3 months mortgage payments, which ever is more. Try calling your lender, they will be able to give you the exact amount of the mortgage payout penalty. You would also have legal fee's ($750 - $1000 depending on the lawyer) and real estate fee's if you went that route. You may need a Real Property Report, depending on what has changed since you have been in your home. Costs of an RPR are about $500.

adam c
07-24-2006, 01:01 AM
it shoud all be listed in ur mortgage agreement. from what i have seen u could pay up to 10k in fees but coming out 150k+ could justify it