Within this circumstances, you’d port your existing home loan ($150,000) to the this new property. But not, because the fresh new property is more costly, you will need to use an additional $150,000 to cover pricing differences. State your own lender gives the extra amount within mortgage loan out-of 4 percent. Here is what your brand-new mortgage may look particularly:

• Ported mortgage: $150,000 during the 3 percent focus
• Extra borrowing: $150,000 at cuatro % desire

If you’re downsizing so you’re able to a less costly domestic, you may also end up getting surplus finance that can be used to pay off part of your own home loan. However, this can produce very early installment costs, so checking your own lender’s coverage is important.

Following the exact same analogy significantly more than, you decide to move to a cheaper family value $150,000. You’d port your financial ($2 hundred,000) towards the fresh possessions. Because the the brand new house is less, you will have an excess regarding $50,000 immediately following promoting your fresh household and repaying your existing mortgage.

In case the lender imposes a good 3 per cent very early installment charge and you can you decide to utilize the $fifty,000 excess to settle a portion of your ported home loan, you can incur a penalty out-of $1,five hundred ($50,000 * step 3 %). 続きを読む →