A 10 STEP GUIDE TO SELLING YOUR HOME - STEP #8

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Real Estate Sales Representative with BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE

A 10 STEP GUIDE TO SELLING YOUR HOME

STEP # 8 - PREPARE YOUR FINANCES

Property Search, Gloria Valvasori
 
 

10-Step Guide to Selling Your Home

 

Step 8: Prepare Your Finances.

Before the offers start rolling in, you should prepare for the massive amounts of money that will pass through your hands.

A lot of the money will probably be going to your mortgage.
If you own your home free-and-clear, congratulations! For the rest of us, there are a lot of mortgage considerations.

“Discharging” your mortgage.
Many people use the proceeds from the sale of their home to “discharge” or pay off their mortgage. If you have what is known as an “open” mortgage, you can pay it all off without any penalties. If you have a “closed” mortgage, be prepared to pay a few month’s payments in penalties.

If you’re buying a new home, is your mortgage “portable”?
Many mortgages are “portable” meaning that you can take your mortgage money with you and buy a new home, without penalty. This can be a real bonus if the interest rate on your mortgage is lower than existing rates! If your new home is more expensive, and requires more mortgage, you’ll have to borrow the extra money at the new, higher rate.

Maybe the buyer is “assuming” your mortgage.
Your mortgage may have a feature that allows the new buyer to take over your mortgage. If the interest rate is lower than existing rates, this can be a very enticing selling feature for your home.

Become a mortgage lender yourself?
If your buyer is having trouble arranging all the money to buy your property, you may consider lending directly to them. This is called a “Vendor Take Back” mortgage, and it’s often used by sellers to help move a property in a slower market. This is an incredibly complicated financial dealing, and you must talk with your REALTOR® and lawyer before choosing this route.

If you find your new dream home before you’ve even started to sell your old one.
Talk to your existing mortgage lender. You may be able to arrange “Bridge Financing”.  This is when your lender (the bank) is confident your existing home will sell quickly, and they agree to lend you the down payment for your new dream home.

The Tax Implications of Selling Your Home. Capital gains tax.
If the home was your primary residence, you will not have to pay taxes on any capital gain (the increase in the value of your home). If you had tenants living in part of your home, such as the basement, you will pay capital gains tax on a portion of your profits. You may also owe capital gains tax if you’re selling a vacation property. Talk with an accountant to find out what you’ll have to pay.

HST for professional services.
Your lawyer and REALTOR® are providing services, and services are subject to HST.

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Mississauga and Streetsville Real Estate


When you choose me to handle your real estate needs, you choose a real estate professional who cares about you and your family, who listens to your needs and who will put your interests first and foremost. I will work together with you, protecting your interests, to achieve your objectives.

I have been uniting families and homes for more than 31 years.. Let me put my 31+ years of knowledge and experience to work for you when selling or buying your next home.

 

Proud recipient of the Platinum award for outstanding serivce with a rating of 100% voted by my clients!!

A great experience starts with a great agent !

Helping You Make The Right Move since 1987. 

Call me at (905) 896-4622 or direct at (416) 717-6331

 www.mississaugarealestateonline.com    gvalvasori@gmail.com            

              

 

No part of this publication, may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, or electronic methods, without the prior written permission of the publisher.  Copyright © 2018  Gloria Valvasori, all rights reserved.

 

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Gloria Valvasori, Accredited Senior Agent

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