Closing the Sale of your Home

Discharging Your Existing Mortgage

It’s common for many people when selling their home to use the proceeds from the sale to discharge or pay off their mortgage loan. If you have a fully open mortgage you can discharge it at any time without penalty. However, if it’s a fully closed mortgage then discharging it may require you to pay substantial penalties. This is often in an amount that is equal to several months interest payments.

There are ways to avoid these penalties such as taking a portable mortgage with you when you sell your present home and applying it to the home you buy. Depending on your specific sales objectives you may be able to time the sales completion to coincide with the end of the mortgage term.

Mortgage "Portability"

The portable mortgage allows you to take your mortgage with you (without penalty) if you sell your present home and buy another one. This can be very beneficial particularly if the interest rate on your mortgage is lower than the market rates at the time of your move.

If your new home requires a larger mortgage amount the additional funds required can usually be furrowed at the current market rate. Portability can also enable you to avoid substantial penalties in discharging a closed mortgage when you sell your home.

Bridge Financing

If you are planning to buy your next home before the sale of your current home is complete, you may want to consider bridge financing. Bridge financing enables you to borrow an amount equal to, or less than, the net proceeds you are expecting to realize on your sale. The to use these borrowed funds to purchase your next home. When the sale on your current home closes you can use the proceeds to pay off the short-term bridge loan plus interest.

Tax Implications of Selling Your Home

Under most circumstances, you will not have to pay tax on any capital gain (the increase of your home's value) when you sell your primary residence.

Estimating the Proceeds from the Sale of your Home

Use this handy worksheet to help you estimate the proceeds that you will have remaining after the sale of your home.

Income
Sale Price $ __________________
Refund of pre-paid costs:
  Utilities $ __________________    
  Heating oil/propane $ __________________  
  Homeowner's insurance $ __________________  
  Real estate taxes $ __________________  
  Condominium maintenance fees $ __________________  
  Municipal assessments $ __________________  
Other Income $ __________________  
 
Total Income $ __________________ A
 
Payments
Balance of mortgage loan $ __________________  
Interest on mortgage since last payment $ __________________  
Mortgage prepayment penalty $ __________________  
Other lender fees $ __________________  
Real estate tax pro-ration $ __________________  
Real estate commission $ __________________  
Legal fees $ __________________  
GST on professional fees $ __________________  
Other payments $ __________________  
 
Total Payments $ __________________ B
 
Net Proceeds from Sale $ __________________ A-B

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Brittany L
  June 09, 2026

Finding a home was something I had dreamed of and thanks to Morgan and Lori these dreams have come true. Their guidance and support was truly remarkable during this process. Thanks to their dedication to their clients and amazing negotiation skills I was able to get into a home in the area I wanted to be in and within my budget. The overall experience was tremendous and I would recommend them to anyone who needs a realtor team who will undoubtedly take care of you. Thank you so much to you both, Brittany and Mason

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Jake Coleiro
  March 10, 2026

Morgan and Lori were great to work with as a first-time home buyer. Even while I was travelling and signing documents from 30,000+ feet in the air, they kept everything organized and stress-free. I’d highly recommend them to anyone looking to buy a home.

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Colleen Norris
  March 04, 2026

Selling our home in a challenging market could have been incredibly stressful, but working with Lori made all the difference. Her attention to detail, deep market knowledge, and clear communication gave us confidence every step of the way. Lori and Morgan handled each part of the process with professionalism and care, making what could have been overwhelming feel manageable and well organized. We’re so grateful for her expertise and would highly recommend her to anyone looking to buy or sell a home. What an amazing team to work with. Colleen and Jim Norris

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Stacey Newstead
  February 12, 2026

THANK YOU SO MUCH LORI, MORGAN AND THE WHOLE TEAM! You made this daunting task of selling our home into a enjoyable journey. I interviewed a few agents & I KNEW from my first meeting with Lori that she was the right agent for us. Going through a separation adds another level of concerns and she answered my questions before I even had to ask. Offered some 'gentle' but TOUGH love when I needed it to keep us moving forward. They guided us through the actionable steps to get our home on the market in a timely manner before February. Then skillfully selected beautiful items to elevate our home to make it extra warm and inviting. They worked incredibly hard on online marketing and followed through with countless phone calls to agents that came through open house & booked showings. Although there were times I felt anxious about whether we'd get the offers, we put our trust in Lori's years of expertise and knowledge of the Burlington market. In the end...WOW! More than happy with the results. Thank you all :)

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