So, you've got your eye on a house in Australia and you're wondering if you can sell it before paying off the mortgage. The answer is, it depends.
There are a few things to consider before making the decision to sell, such as how much equity you have in the property, what the current market conditions are, and what your financial situation looks like.
If you're thinking about selling your house before paying off the mortgage, here's what you need to know.
What is a Mortgage Discharge?
A mortgage discharge is when your mortgage is paid off in full and the title of the property is transferred to you. This can happen either through selling the property, or by making extra repayments to pay off the mortgage sooner.
If you're thinking about selling your property before the mortgage is paid off, you'll need to get a mortgage discharge from your lender. This can be a complex process, so it's important to speak to your lender and a solicitor before proceeding.
Can You Sell Your House Before Paying Off the Mortgage?
The short answer is, yes, you can sell your house before paying off the mortgage. However, there are a few things you need to consider before making the decision to do so.
If you have a mortgage, the bank or lender will usually have a mortgage over the property. This means that if you sell the property, the bank or lender will need to be paid out first before you receive any money from the sale.
If you have equity in the property, this means that the sale price is more than the amount you owe on the mortgage. In this case, you would be able to keep the difference between the sale price and the amount you owe on the mortgage.
If you don't have equity in the property, this means that the sale price is less than the amount you owe on the mortgage. In this case, you would need to pay the difference between the sale price and the amount you owe on the mortgage.
It's also important to consider the current market conditions when making the decision to sell. If the market is slow, it may take longer to sell your property and you may not get the price you're hoping for.
If you're thinking about selling your property, it's important to speak to your lender and a solicitor to find out what your options are.
What is Loan Portability?
If you're planning to sell your property and buy a new one, you may be able to port your mortgage. This means that you don't have to reapply for a new mortgage and you can keep the same interest rate and terms as your current mortgage.
To port your mortgage, you'll need to have a good credit rating and meet the eligibility criteria for the new property. You'll also need to have enough equity in your current property to cover the deposit for the new property.
Conclusion
If you are looking to sell your house in Australia before paying off the mortgage, it is possible to do so. However, there are a few things to keep in mind. First, you will need to have equity in your home. This means that the sale price of your home must be higher than the amount you still owe on your mortgage. Second, you will need to find a buyer who is willing to pay the full sale price of your home. And third, you will need to pay off any outstanding debts on your home before selling it. If you are able to do all of these things, then you should be able to sell your home before paying off the mortgage.
Wealthy You is a mortgage company in Australia that offers Sydney a variety of mortgage solutions to meet specific financial needs. If you are looking for the best home loans in Sydney, get in touch with us today!
