You have not yet finished repaying your mortgage loan, and yet you would like to leave your home. You can resell or rent your accommodation. These two solutions have different financial consequences.
Sell your old home
Sell your old home. Are you planning to finance your new home with a mortgage loan? You can of course take out a new mortgage loan or opt for a bridging loan .
Did you know that you can use your current credit to finance the purchase of a new property? It is the same credit that subsists; only the mortgage is transferred from one building to another.
Transfer your mortgage loan
This is an interesting solution in more ways than one:
- You do not have to pay compensation to your lender, since your credit continues.
- The costs of transferring your mortgage are lower than those associated with canceling the old mortgage and taking out the new mortgage.
- You avoid the application fees for a new mortgage loan.
- You maintain the conditions of your old credit . This can be interesting if you benefit from a contract with an advantageous rate.
When transferring credit, you will have to pay any application and expert fees. Ask your lender for more information.
Liquidate your mortgage loan to take out a new one
If the transfer of credit has many advantages, it is sometimes in your interest to liquidate the credit of your old home to take out a new one. This is the case when market interest rates fall, for example, and your current loan has been concluded at a higher rate.
But before liquidating your old credit, you must read your contract and, if necessary, inquire with your lender. He will explain the various costs related to the early repayment of your loan, such as reinvestment indemnities and the costs of releasing the mortgage. Finally, do not forget that your new mortgage loan will also generate application fees, mortgage fees and any expert fees.
Subscribe to a bridging loan
Bridge credit (or bridging credit) is a solution specially designed to cover the period between the purchase and sale of housing. Your bank advances you the capital you expect from the resale of your home to allow you to buy your new home or start building your house.
This contract is in principle concluded in the short term: from a few months to a year, or even more if necessary. You only pay interest.
Rent your old home
In this case, your mortgage credit follows its course and you continue to pay your monthly payments. With a bit of luck, the rent you will receive will cover these monthly payments, and even recurring costs, such as maintenance and repairs, property tax or insurance. However, renting does not only have good sides. Finding a tenant can take time and every month without rent is a dead loss.