Real Estate

Possible to sell Condo - recently renewed 5 yrs (fixed rate)

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[OP]
Deal Fanatic
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Nov 13, 2010
7612 posts
1683 upvotes
Scarborough

Possible to sell Condo - recently renewed 5 yrs (fixed rate)

Hey all,

I'm a renter but asking for my friend who has condo but may need to sell due to family issues

Here's the rough estimate:
Bought: 2016, for $273000, i think he had to pay cmhc with 5% ?
currently owed around 222000, probably can get 450k easily for it for ideal location and 3beds
its in scarborough, but its 3bedroom with 1.5 washrooms
he renewed fixed for 5 yrs, i think with mcap? or rmg? not sure

What are usually fines or repurcussions for him if he just sell and not buy another property??
mortgage is under his name only, but i'm not sure if his wife also need to sign to sell ?
They looking to just leave canada as they needed back home to care for old parents for few yrs or more.

Is there a big financial loss in their scenario ??
5 replies
Deal Fanatic
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Jan 16, 2011
7177 posts
9151 upvotes
The NORTH
apnayloags wrote: Hey all,

I'm a renter but asking for my friend who has condo but may need to sell due to family issues

Here's the rough estimate:
Bought: 2016, for $273000, i think he had to pay cmhc with 5% ?
currently owed around 222000, probably can get 450k easily for it for ideal location and 3beds
its in scarborough, but its 3bedroom with 1.5 washrooms
he renewed fixed for 5 yrs, i think with mcap? or rmg? not sure

What are usually fines or repurcussions for him if he just sell and not buy another property??
mortgage is under his name only, but i'm not sure if his wife also need to sign to sell ?
They looking to just leave canada as they needed back home to care for old parents for few yrs or more.

Is there a big financial loss in their scenario ??
Read the mortgage, it will outline the penalties for terminating the mortgage early.
Can't answer about the wife. I believe that since she is not on the mortgage she doesn't have to sign unless she is contesting it and has a stake in it as matrimonial property.
Deal Addict
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Apr 12, 2013
2920 posts
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Moon
Mortgage pros can correct me if I am wrong but if he is not porting his mortgage to another property he'd basically need to pay for the Mortgage discharge fees which are usually quite expensive for fixed mortgages. Refi is usually the better option.

TL;DR tell your friend to read what he signed.
Koodo, Public Mobile, Lucky Mobile Customer
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Dec 28, 2010
884 posts
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Toronto
@apnayloags
First, ask your friend to call the lender and just ask.
Second, from what I have understood in previous mortgage breaking threads, the faster you break a fixed -earlier in the term- the less are the penalties and charges. So yes there will be fees , interest charges etc..but less if done now than later.
Deal Fanatic
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Oct 16, 2008
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Vaughan
OP
Pick up the phone and call lender. They can give you in more details. For sure, you will pay some fees.
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[OP]
Deal Fanatic
User avatar
Nov 13, 2010
7612 posts
1683 upvotes
Scarborough
thanks for the replies. I've passed on the info.

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