In selling a property to buy a new one, how can I avoid the bank
fee for ending the initial mortgage?
Q.
I have recently started looking at selling my property with the
intent of buying a larger property with my partner. My partner has
roughly $200k of equity in her property. Her property is currently
rented and we are looking to sell that also. The problem is that I
wish to sell my property which is on a fixed rate of approx 8.64%
for four years of which three years is remaining - amount of the
mortgage is $285k. The bank wants $30k for me to break the
mortgage. I'm after some advice on what options are available to
minimise the impact of such a situation.
A.
Talk to your bank - you may well find you can transfer the
mortgage from your existing property to the new property. You will
not escape the fixed rate but it will enable you to avoid the
$30,000 break costs.
Each week financial advisor Noel Whittaker answers your
questions.
