Thinking of selling before your mortgage term ends?

Thinking of selling before your mortgage term ends? Read this first.

Selling your home before your mortgage term is up? It’s important to know what that means for your finances. While there can be penalties, in the right situation, it might still be the best move. Here’s what to consider:

🔹 Mortgage penalties – Most closed mortgages come with a prepayment penalty, plus potential administrative, appraisal, and discharge fees. If you received a cash-back incentive or line of credit, you may need to repay that too.

🔹 Interest rate savings – If mortgage rates have dropped, breaking your mortgage could help you secure a lower rate for your next home. Just make sure the savings outweigh the penalties.

🔹 Blend-and-Extend option – Some lenders let you combine your current mortgage rate with a new one, potentially avoiding penalties. Not all lenders offer this, so it’s worth checking with your provider.

🔹 Your home equity – If your home’s value has gone up, your equity might help offset some of the costs of an early sale.

Every situation is different, so before making a move, it’s best to get all the facts. If you have questions, just give us a call—We'd be happy to help!

Warmly,

Khoa

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