Ask an Expert: Selling Your Old Place to Buy New

Thinking of selling your place to purchase a new townhome or condo? At Avi Urban, we work with the experts to help you make the best decisions when buying your new home with us. One of these experts is Laura Parsons, Bank of Montreal Manger of Mortgage Specialists and Calgary Sun Columnist.

Here are some of Laura’s great mortgage tips to consider when selling your home this year:

·         Avoid the penalties: “If your home is for sale and you have a closed-term mortgage, you may have to pay a penalty when you pay out your mortgage after your home is sold,” explains Parsons. To avoid paying the penalty, make your mortgage a little more appealing…

·         Make your mortgage more attractive:  “One option to consider is to buy down your interest rate to make your mortgage more attractive to be assumed by the purchaser. It will cost you some money, but not as much as if you had to pay the full penalty.”

·         Assumable is an Asset: An assumable mortgage with a low interest rate is attractive, Parsons shares,”because buyers can take your mortgage terms and port them to their own mortgage, if both are with the same bank.”

·         Advertise what Counts: “You can even advertise your home with a low assumable mortgage rate,” says Parsons, “which may help your listing stand out among the rest.”

When deciding to sell, mortgage specialists often work closely with realtor partners to help sell their clients’ homes. If you have a question about your home financing, reach Laura Parsons at laura.parsons@bmo.com.