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Yes, you can sell a house with a mortgage.
There are 5 steps to sell a house with a mortgage.
- Contact Your Lender:
- Notify your lender about your intention to sell. They can provide a payoff statement, which details how much you owe on the mortgage.
- Determine Sale Price:
- Set a sale price that covers your remaining mortgage balance and any additional selling costs (like agent fees).
- Find a Real Estate Agent:
- Consider hiring a real estate agent to help with marketing and selling the property.
- Complete the Sale:
- Once you receive an acceptable offer, you can proceed with the sale. The buyer’s deposit may go into a trust account, and the sale contract will outline the terms.
- Pay Off the Mortgage:
- At settlement, the proceeds from the sale are used to pay off the mortgage. Any remaining funds after paying off the mortgage and other costs will go to you.
What Are the Things to Consider Before Selling a House with a Mortgage?
- Early Repayment Fees: Check if your mortgage has any early repayment penalties for paying it off before the term ends.
- Loan Portability: If you want to keep your mortgage, some lenders allow you to transfer it to a new property.
- Discharge Process: After the sale, your lender will need to formally discharge the mortgage, which is usually handled during settlement.
Selling a house with a mortgage is common and manageable, but it’s crucial to understand the financial implications and ensure you communicate with your lender throughout the process.
If you need an experienced conveyancer to help with your property transaction, please don’t hesitate to contact Red Door Conveyancing at 03 8456 6797 for more details.
