Bank costs re: selling & buying a house/mortgage questions... I am clueless!

[mitzy81]

Hi everyone,

I have some questions, we are going to go to the bank on Friday (Would be nice if we had an idea before hand). We have been living in our house for about 14months, we have just found a house that we are interested in, on acerage (yay!) it is cheaper than what our place is now, so therefore mortgage would be less, but it is not a completed house (which we don't have a problem with). What are the costs involved with the bank? Is the mortgage transferred over, or do we literally pay it off and start again? Are there huge costs involved? DP is saying 'we probably can't do it' but I am sure we could be able to? I have no idea as this is our 1st home together (no 1st home owners grant, both had previous partners)

Any info would be appreciated.

[Lulu]

You will have to call the banks and shop around. Its differs from place to place, you have to do as much homework as you can!

[sangie]

Mitzy if your loan is portable then you may just be able to transfer your current loan to the new place. This is what we did and we only had to pay for the transfer of the title (about $60 I think?). If its not portable then the loan will have to be paid out and since you haven't had the loan for very long there may be exit fees although this varies between lenders.

Good luck!

[LaDeeDa]

A friend of mine got charged $19k to pay out her mortgage as it was within 3 years just last week...

make sure you read all the fine print

[Pandora]

Yep it depends on the loan that you have.
Some have early repyament fees (even when you transfer/port the loan withint he same bank), others dont.

can you say what type of loan you have, which bank etc? SOme have the infor available online so you might be able to find it.
It should also be in your loan contract for the current house if there are fees for early release of mortgagte.

[mitzy81]

Thanks for all your help, we are up for big bucks if we pay it out in the 1st 4yrs it seems. But in saying that, the place we were interested in has just sold! Oh well..... it was not meant to be

[Lulu]

Yeah, they get you ANY way they can..........barstardios