Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Should I keep a sub-4% mortgage or sell?

Keeping a sub-4% mortgage is a real financial advantage worth weighing against your reason for selling, since giving it up means financing your next home at whatever rate applies when you buy instead. CMHC-insured or not, a lawyer and your lender can confirm the exact payout cost before you decide.

Breaking the mortgage early usually triggers a prepayment penalty, and Canadian mortgages compound semi-annually, which affects how that penalty is calculated, so the payout figure is not simply the balance owing. Some lenders allow porting a low rate to a new property, and legal fees of $800 to $1,500 apply to closing the new purchase either way.

The math changes if your sale is driven by downsizing, health or a life change rather than by choice, since a low rate on a home that no longer fits your needs is not really an advantage you are using. Get your hand-reviewed valuation from Joel Dyck to see what the trade-off actually looks like in dollars.

Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

Still have a question?

Ask Joel directly. No form, no obligation, and a real answer even when the answer is that now is not the time to sell.