Mortgage question

[delco21]

I'm new to the housing market bought my first place last year and put 5% down payment on a $260k home

I'm in a 25 year mortgage with a 5 year rate. I wanna talk to my mortgage provider to possibly see if I can sell this place and buy something bigger and see what kind of penalty I'll have if I use them for the new mortgage.

My question is on the new place can I put. 5% down again? Is this a bad idea to sell right now?

Thanks

[Cos]

.

[TimLacroix]

Originally posted by delco21
I'm new to the housing market bought my first place last year and put 5% down payment on a $260k home

I'm in a 25 year mortgage with a 5 year rate. I wanna talk to my mortgage provider to possibly see if I can sell this place and buy something bigger and see what kind of penalty I'll have if I use them for the new mortgage.

My question is on the new place can I put. 5% down again? Is this a bad idea to sell right now?

Thanks

Yes you can purchase with 5% down if home is owner occupied... as mentioned above by Cos.

There are a couple of factors in determining how to mitigate from the penalty that you will encounter for breaking the current mortgage.

1 - you can port the existing mortgage to the new property and do a top up. This will save you on the penalty and also save you some $$$ as the CMCH / Genworth premium gets ported too.

2 - if breaking the mortgage is going to save you money even with paying the penalty... be sure to have your lender or broker port / credit the already paid CMHC / Genworth premium. This is missed by the majority of lenders and brokers.

3 - it is important to run the numbers to see if a new mortgage can save you money vs porting the existing? This probably unlikely since your current rate should be around 2.89% unless you took variable?

The other aspect is planning for the future... and understanding your options with the lenders... do these options meet you and your family needs & goals.

If you are uncertain or need a 2nd opinion... please do not hesitate to call us or PM.