What Happens to Your Mortgage When You Sell Your House in Canada?
Selling your house is a major financial decision, and if you still have a mortgage, one of the first questions you may have is: "What happens to my mortgage when I sell my house?" The short answer is that your mortgage generally needs to be paid out when the sale closes. However, the amount you actually need to pay your lender can be different from the mortgage balance you see on your statement. Depending on your mortgage type, remaining term, lender and circumstances, you may also have to pay a mortgage prepayment penalty, discharge fee or other costs. If you're planning to sell your home , understanding these costs ahead of time can help you estimate how much money you'll actually have left after the sale. 1. Does selling my house automatically pay off my mortgage? In most cases, yes. When you sell a property in Canada, your lawyer handles the closing process and coordinates the payout and discharge of the mortgage registered against the property. Fo...