Mortgage Transfer?

[Jeremiah]

I currently have a mortgage on a condo but want to buy a new home. (in development) What are my options to move my mortgage over to the new place?

Could I use the equity in my current mortgage as a downpayment in the new place and then sell and move it over?

Hope i dont come across as stupid. I'm fairly new to this but im really tired with the fucking rules in my condo and tired of them raising my condo fees for no reason. Also with the attractive bonuses and extras being given out for buying new I am very interested in owning a place thats not attached to someone else.

Thanks

[JordanLotoski]

yes for sure you can "port" your mortgage, then add on any, the bank will blend the rate into one payment.

[Jeremiah]

Ok so what about the down payment?

[Clever]

I'm sort of the same dilemma as well, need a bigger place but because of the economy, we have to stay and wait until it's more feasible to sell and upgrade.

[blinkme_210]

Beside some refinancing fees with your bank and/or notary/lawyer if you did/do decide to use one, it shouldn't be too much of a problem.

[barmanjay]

well,.. best thing is to talk with a mortgage specialist

they can tell you all the options you need.

porting your mortgage is definitely viable.

do you have lots of equity in your condo?

if so, maybe you can take an equity loan for a deposit on a home?

There are many mortgage brokers around,.. I have a few I can pass along for you to chat with.

who is your motgage with?

[Jeremiah]

I'm with ATB. I have a real good broker. As for equity our condo was appraised around 30k higher than we bought in the summer. Take from that what you will.

[max_boost]

I know I'm stating the obvious but given the current market conditions, make sure you can sell your current place first so you know for sure you have that equity to put towards your new place.

I'm thinking about moving too. It's that one shot to upgrade to a newer, bigger, nicer place without paying that huge premium during the boom. The fall in home values narrows that gap.

[barmanjay]

^^^ very true

I would probably put your place on the market first and try and sell it right away, rent if you have to till your new house is built, and keep some of the equity gained in a TFSA.

I've been keeping an eye on condo's and depending where yours is,.. you may not have that equity anymore.

Doesn't help that many more units are coming into the market over the next year


Another thing that sucks,.. you cannot use the city tax property assessment to base the current value of your home.

Some properties have been selling 'on average' at approx 80% of their city tax property assessment value.

some more, some less.

[max_boost]

How are the banks in terms of home evaluations? It was a short while ago when banks were appraising 15-20% less than the market value. I'm not sure if that has changed or not.

[el-nino]

ok here are your options
1) Sell your condo and blend and extend your mortgage. You HAVE to have a down payment. You need to be able to qualify for the new amount. The bank you are with will blend your existing rate with their new rate. The thing with this is that with rates being at an all time low it maybe better for you to break the contract. Pay the penalty and get a new mortgage with a new rate. This leads me to your 2nd option
2) Sell your condo and break the contract you have with your F.I. penalties are usually 3 month interests but depending who your bank is it can be and maybe higher. Like I said rates are at an all time low and it maybe more beneficial to pay this penalty and get a whole new mortgage.
3) Pull out equity, if any, in your condo and rent it out. Use equity to buy new place.

All scenarios are worth looking at. I can crunch the numbers for you and I can tell you whats your best bet as far as whats the cheapest route to go.
If you want to buy a new place you HAVE to have a down payment.
pm me if you want to talk about it more into detail.