Real Estate

Bought in 2015, now underwater on mortgage and want to sell

  • Last Updated:
  • Sep 3rd, 2021 10:51 pm
[OP]
Newbie
Jul 19, 2011
23 posts
5 upvotes
REGINA

Bought in 2015, now underwater on mortgage and want to sell

So I bought a 4 bed 4 bath 2 story house with a attached 2 car garage in 2015 for 445k in Regina and now comparable houses are around 380K. I have been shopping for higher paying jobs but if I moved, how does it work for the difference in the mortgage since I'm underwater with all of the closing costs? Do I have to pay the bank immediately or will they offer a personal loan?
33 replies
Deal Fanatic
User avatar
Sep 14, 2006
9469 posts
2316 upvotes
You owe the bank the amount on your mortgage. If you had a down payment on the house, hopefully the mortgage amount is lesser than the cash you net out after selling. This might mean the dp $ you had is gone and you’re literally starting from scratch again.
TEAM CANADA!!!!!!!!!!!
[OP]
Newbie
Jul 19, 2011
23 posts
5 upvotes
REGINA
Ok, that really sucks. Do you know if they offer you a loan for that amount or do I have to pay them the difference immediately? It will be hard to come up with that kind of cash on the spot.
Deal Fanatic
User avatar
Sep 14, 2006
9469 posts
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powerhx2 wrote: Ok, that really sucks. Do you know if they offer you a loan for that amount or do I have to pay them the difference immediately? It will be hard to come up with that kind of cash on the spot.
Depends on how much you need. Do you have anything to secure the loan against or would it be unsecured? The difference in interest will be big. You can get a loan but lots of variables to look at. Do you have a job? What’s your credit score? How much do you need? All that plays a big factor on the loan.

Imho if you can hold onto the house, I would do it unless you think the market in Regina will continue to drop. At the end of the day, it’s your house and you need a place to live. If you’re flipping then that’s a totally different conversation. Once you sell your house, you’re stuck with nothing. Of course, if you can’t maintain the mortgage payments or if you have no job and you’re really stuck then selling is probably one of the options to explore but try to see if you can keep it first.
TEAM CANADA!!!!!!!!!!!
[OP]
Newbie
Jul 19, 2011
23 posts
5 upvotes
REGINA
Yeah, I really don't have to move. I do have a job but I might be financially better off moving for a higher paying job and selling my house for a loss, especially if housing prices crash like they say they might. I have good credit so maybe the bank will give me a good rate. Thanks for the advice.
Deal Guru
User avatar
Mar 23, 2008
13006 posts
9962 upvotes
Edmonton
powerhx2 wrote: Yeah, I really don't have to move. I do have a job but I might be financially better off moving for a higher paying job and selling my house for a loss, especially if housing prices crash like they say they might. I have good credit so maybe the bank will give me a good rate. Thanks for the advice.
It's the kind of thing you want to get locked down BEFORE taking any actual steps to make it happen. Many banks won't lend that kind of money without security of some kind.

But you mention how much you purchased your house for... What's more important is the current mortgage balance, which will depend on how much of a downpayment you did and how much of the principal you've paid off in the last 6 years.

C
Deal Addict
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Dec 13, 2016
4279 posts
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Keep your house. You will lose so much selling then buying again.

If you want to move rent it out.
[OP]
Newbie
Jul 19, 2011
23 posts
5 upvotes
REGINA
Renting is tough. Companies are desperate and are offering 3 months free rent if you sign today and rents are dropping. I doubt it would cashflow very well.
Deal Addict
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Dec 13, 2016
4279 posts
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powerhx2 wrote: Renting is tough. Companies are desperate and are offering 3 months free rent if you sign today and rents are dropping. I doubt it would cashflow very well.
How much rent do you think you can get? You are living and working in Canada. Offset any rental loss against your income. Believe you me, a lot of countries don't have this option.
Deal Fanatic
Feb 4, 2010
6601 posts
6078 upvotes
powerhx2 wrote: Yeah, I really don't have to move. I do have a job but I might be financially better off moving for a higher paying job and selling my house for a loss, especially if housing prices crash like they say they might. I have good credit so maybe the bank will give me a good rate. Thanks for the advice.
I don't understand why you are creating a predicament for yourself if you don't have to if you're currently living comfortably. Why the sudden need to make more income? Why not wait until the housing market picks up? Doesn't seem to make much financial sense for you to be making a move right now IMO especially when you have no guarantee you will earn more money elsewhere.
Newbie
Nov 10, 2015
45 posts
69 upvotes
Toronto, ON
You must have decent equity after paying mortgage for six years so before you take the loss, I think you should speak with a decent accountant. Accountant can run the numbers and give you ideas about how you can use capital loss efficiently and you may even come out ahead after few years of renting and offsetting capital loss. It'll be worth paying for professional advice and having a longer term outlook!
Deal Guru
Feb 9, 2009
12370 posts
11280 upvotes
Amazing to see the contrast of our housing market.

Regina... underwater in 6 years.

Toronto... up like 800k in the same time no jokes lol.

insane
Deal Expert
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Feb 8, 2014
26070 posts
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Socially Distanced
Sanyo wrote: Amazing to see the contrast of our housing market.

Regina... underwater in 6 years.

Toronto... up like 800k in the same time no jokes lol.

insane
Was thinking this.
Perhaps Ontario should export some home buyers to Regina, reduce demand here and help the OP at the same time.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Deal Addict
Jan 31, 2007
4832 posts
4846 upvotes
Richmond Hill
wow, didn't know is this affordable in Regina.
My suggestion is hold on to it.

I saw people sell when they have hard time and they never able to buy again when market change direction
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
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Deal Expert
Feb 29, 2008
19127 posts
17469 upvotes
Tarrana & The Ri…
Sanyo wrote: Amazing to see the contrast of our housing market.

Regina... underwater in 6 years.

Toronto... up like 800k in the same time no jokes lol.

insane
So it makes you scratch your head when people say homes in Canada are unaffordable. They're unaffordable in the 2 major cities and that's about it.
Deal Expert
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Feb 8, 2014
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JayLove06 wrote: So it makes you scratch your head when people say homes in Canada are unaffordable. They're unaffordable in the 2 major cities and that's about it.
And their peripheries Confused Face
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Newbie
Apr 7, 2013
99 posts
58 upvotes
Oakville
powerhx2 wrote: Yeah, I really don't have to move. I do have a job but I might be financially better off moving for a higher paying job and selling my house for a loss, especially if housing prices crash like they say they might. I have good credit so maybe the bank will give me a good rate. Thanks for the advice.
Higher paying job subtracted by loss on house may not have net positive gain. Choose you move wisely by determining whether the incremental increase to your wage is worth taking a net loss on your Regina home.
Deal Addict
Jun 14, 2018
1275 posts
1562 upvotes
If you don't have a wife and kids, get a roommate or two of them. You don't need to be living in a big 4 bed+ 4 bath house by yourself
Deal Addict
Jan 26, 2016
2227 posts
2251 upvotes
Toronto, ON
powerhx2 wrote: So I bought a 4 bed 4 bath 2 story house with a attached 2 car garage in 2015 for 445k in Regina and now comparable houses are around 380K. I have been shopping for higher paying jobs but if I moved, how does it work for the difference in the mortgage since I'm underwater with all of the closing costs? Do I have to pay the bank immediately or will they offer a personal loan?
What does it matter what the price is? You have a place to live. Why do you have to move and where are you moving to?

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