You’ve Sold Your House, Now What?
Updated: Aug 2, 2022
Selling your home is a joyous occasion, but what happens when the "sold" sticker is placed over the "for sale" sign on your front lawn? The reality is that the true business of selling your house begins instantly after the sale price is decided upon and the contract is signed. Having a professional conveyancer work closely with you to organize this procedure protects your interests and ensures the transaction goes as smoothly as possible.
Paying Off Your Mortgage
Selling a home is something that most Australians do while their mortgage is still ongoing. If the property you're selling has a mortgage, you must notify your mortgagor well in advance of settlement. Depending on your mortgagor, applying for a "discharge of mortgage" application may take weeks to process, so notify your mortgagor as soon as your property is sold.
If you’re selling your property for more than you owe, congratulations! Unlike a misfortune, you will not need to locate more dollars to assist your settlement to go successfully.
Whereas, if the circumstances surrounding the sale of your property are not as favorable, you may find the sale price of your property not fully paying the outstanding balance of your home loan. If that's the case, planning for settlement day entails ensuring you have access to the finances required to pay off your mortgage in full.
Substitution Of Security
The ability to move your existing mortgage from one home to another is known as substitution of security or loan portability.
You may be able to pay a nominal charge to transfer your current mortgage balance from the house you are selling to the new property you are purchasing, depending on your financial situation and your lender. This implies that your old interest rate and loan terms will be carried over to your new property.
You may need to raise the amount of your loan or donate extra dollars to accomplish this. It is suggested that you speak with your lender or solicitor to learn more about this option.
Moving Out and Moving On
Whether it's an investment property or your primary residence, selling your property may be a bittersweet experience, as you balance the excitement of the next steps in your property journey with recollections of key life events.
Whatever your motive for selling, it's vital to reflect on this moment in your life while also congratulating yourself on your accomplishments. Selling your home should seem like a celebration if you approach it with a good mindset.
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