If you’re thinking about selling your current home in Sudbury and moving to another, you might be wondering: What happens to my mortgage? The answer depends on the type of mortgage you have and the options offered by your lender. Let’s break it down so Ontario home buyers and sellers know what to expect.
Do I have to pay off my mortgage when I sell my home?
Yes. When you sell your home, the proceeds first go toward paying off your existing mortgage balance, plus any penalties or fees if you’re breaking your term early. The remainder is yours to put toward your next home purchase.
What are my options when selling with a mortgage in Ontario?
Mortgage Porting (Transferring):
Some lenders allow you to “port” your mortgage to your new home. This means you keep your current interest rate and terms, which can be helpful if rates have gone up.Paying Out and Starting Fresh:
You can pay off your old mortgage when you sell and take out a brand-new mortgage on your next home. This works if you want different terms, a different lender, or need more borrowing power.Blended Mortgage:
If your new home costs more and you’re porting, some lenders offer a blended rate (a mix of your old rate and the new one).
What if I break my mortgage early?
If you sell before your mortgage term ends, you might face a prepayment penalty. This could be:
Three months’ interest, or
An Interest Rate Differential (IRD), depending on your mortgage type.
Your lender can calculate the exact amount, and it’s important to factor this into your selling costs.
How does this affect first-time buyers upgrading in Sudbury?
Many Sudbury homeowners start with a starter home, then move up as their needs grow. If you’re upgrading, knowing your mortgage options can save you thousands. Talking to both your lender and a Sudbury real estate agent will help you line up the timing and financing smoothly.
Key takeaway for Sudbury home sellers and buyers
When you sell your Sudbury home, your mortgage doesn’t simply disappear — it must be paid off, transferred, or renewed in some form. The good news is there are flexible options, and with the right planning, you can transition to your next home without unnecessary stress.
📞 Thinking about selling and buying in Sudbury? Let’s review your options and make sure your mortgage works for you in your next move.
Tanya Vanden Berg | Broker of Record
705-618-4663