how soon can i sell my home after purchase?


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mrpandya   
Member since: Aug 09
Posts: 184
Location:

Post ID: #PID Posted on: 10-11-13 13:51:07

I buy a house last nov. in 2013 ,its almost one year , now i want to sell it for some reason.
Is there any rules that it can not be sell within perticular time .
One of broker told me that if u sell early ,u need to pay some fee to the bank from whom i took the loan.
Any help please
Manoj


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Full House   
Member since: Oct 12
Posts: 2677
Location:

Post ID: #PID Posted on: 10-11-13 17:53:40

Quote:
Originally posted by mrpandya

I buy a house last nov. in 2013, its almost one year , now i want to sell it for some reason.

GO AHEAD AND SELL. IT IS O.K. You lose a lot of money in commissions and penalties.

Is there any rules that it can not be sell within perticular time . NONE THAT WE KNOW OF...

One of broker told me that if u sell early ,u need to pay some fee to the bank from whom i took the loan. BANKS CHARGE ALL KINDS OF PENALTIES CHECK YOUR MORTGAGE PAPERS WITH THE BANK.

Any help please. ALSO TALK TO A LAWYER, If you have a good reason, then the lawyer will help. pay him for his advice.

Manoj


-----

If you get a job 40 klicks away and move, some or all of the expenses could be written off. That is a possibility.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/219/

Good luck.

FH.



mrpandya   
Member since: Aug 09
Posts: 184
Location:

Post ID: #PID Posted on: 10-11-13 20:42:25

Thank you very much


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san-hugo   
Member since: Aug 10
Posts: 2009
Location:

Post ID: #PID Posted on: 10-11-13 22:25:33


It is termed as early mortgage payoff penalty. Believe me its a big term and people tend to scare on that but the penalty is not as big in dollars as it sounds. its 3 months of interest on remaining mortgage. roughly @3.0% on 400k Mortgage it should be around 3k.

If you are shifting your primary residence , you do not have to pay much of the penalties, none except above. There is lot of headache though. All the best.



Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON

Post ID: #PID Posted on: 11-11-13 18:27:36

Quote:
Originally posted by mrpandya

I buy a house last nov. in 2013 ,its almost one year , now i want to sell it for some reason.
Is there any rules that it can not be sell within perticular time .
One of broker told me that if u sell early ,u need to pay some fee to the bank from whom i took the loan.
Any help please
Manoj



Manoj,

I understand that you bought the house in Nov 2012 and after 1 year you want to sell it.

There is no rule prohibiting you to sell the house as it is yours and you could have sold it 1 day after you bought it. However, it seems you are asking to confirm if there would be any tax liability or not.

If it was your principal residence, then you would not have to pay any taxes on the gains but if it was a rental property and if you realize some capital gains after all the expenses, you may have tax liability.

Secondly, as you took a mortgage on this property, you may have to pay penalties depending on the mortgage product or term you have had. It could be higher of 3 months interest or Interest Rate Differential. IRD only applies to the fixed rates mortgage and is generally applicable if the mortgage is taken from a big bank because they calculate based on some posted rates and not on the contracted rate. You would have to ask your bank about the penalties. And of course, there may be Realtor's costs (if selling though one) and legal costs for the transaction.

In order to mitigate some of the Realty costs, you may want to sell it privately to save on Realty commission or put the details on classifieds at Canadian Desi and who knows you may get some buyer here and if you have a good rate of mortgage and some one assumes that rate, you may be able to save on penalties.

Good Luck.




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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada



mrpandya   
Member since: Aug 09
Posts: 184
Location:

Post ID: #PID Posted on: 11-11-13 19:17:16

San-Hugo and chopra saheb
Thank you very much.
My last question is,
If I sell house through broker and buy a condo with same broker,how much could be broker fee?


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Pramod Chopra   
Member since: Sep 03
Posts: 1284
Location: Pickering, ON

Post ID: #PID Posted on: 12-11-13 10:28:44

Quote:
Originally posted by mrpandya

San-Hugo and chopra saheb
Thank you very much.
My last question is,
If I sell house through broker and buy a condo with same broker,how much could be broker fee?



It depends on your Realtor. Generally they charge 1% selling fee for their own services if you are buying through them. You still need to pay other broker fee of 2.5% so if all your total selling Realty fee would be 3.5% plus HST.

On a separate note, if you are selling and buying simultaneously then you should be thinking of porting your existing mortgage to save on penalties. You may have to either coincide both the closings or your condo buying should be within some 90 days time of selling the house and your bank may let you port the mortgage without any penalties. If you are not sure of the procedure you should call your bank and ask about their porting policies.


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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada





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