What happens mortgage when you sell to buy another home?

PCros

I may be overthinking this or I'm just dumb but what is involved in the whole process of selling a home to buy another?

Figures:
-House purchased for €250k
-House now worth €300k
-Mortgage balance €200k

What profit would I be walking away with?

Does the buyer of my home take on the mortgage and its current rate vice versa?

awec

PCros wrote: »

I may be overthinking this or I'm just dumb but what is involved in the whole process of selling a home to buy another?

Figures:
-House purchased for €250k
-House now worth €300k
-Mortgage balance €200k

What profit would I be walking away with?

Does the buyer of my home take on the mortgage and its current rate vice versa?

You'd sell the house for 300k, 200k of which will go to the bank to clear the mortgage, and the remaining 100k sent to you. If it's your own home then no tax due on it.

Mortgages don't transfer.

That 100k would generally be used as the deposit toward your next purchase, which would be a brand new mortgage.

dubrov

You walk away with 100k and your mortgage contract ends.

The buyer gets their own mortgage for whatever amount they need

L1011

You pay off the mortgage as soon as you get the payment from the buyer. The mortgage is yours alone

The new buyer has to sort out their own funding.

You will get 100k less your costs in that scenario, assuming this is your primary residence

PCros

Thanks folks...I was thinking that but then I kept thinking a confused myself!