{"id":6563,"date":"2024-12-03T10:21:00","date_gmt":"2024-12-03T08:21:00","guid":{"rendered":"https:\/\/www.appartement.be\/what-happens-to-your-mortgage-loan-when-the-home-is-sold\/"},"modified":"2024-12-24T13:41:14","modified_gmt":"2024-12-24T11:41:14","slug":"what-happens-to-your-mortgage-loan-when-the-home-is-sold","status":"publish","type":"post","link":"https:\/\/www.appartement.be\/en\/what-happens-to-your-mortgage-loan-when-the-home-is-sold\/","title":{"rendered":"What happens to your mortgage loan when the home is sold?"},"content":{"rendered":"<p><em>What happens to your mortgage loan when you sell your home?<\/em><\/p>\n<h2>Contents<\/h2>\n<ul>\n<li>What is a mortgage loan?<\/li>\n<li>What happens to your mortgage loan when the home is sold?<\/li>\n<li>Tips when considering your loan<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2>1. What is a mortgage loan?<\/h2>\n<p>A mortgage loan is a loan that you use to buy a house, apartment or other real estate. Your home serves as collateral for the loan, which means the bank has the right to sell your home if you can&#8217;t repay the loan. You repay the loan in monthly installments, including interest, over a predetermined term.  <\/p>\n<p>&nbsp;<\/p>\n<h2>2. What happens to your mortgage loan when the home is sold?<\/h2>\n<h3>2.1. Stap 1: Laat je bank het resterend saldo berekenen <\/h3>\n<p>Contact your bank to find out the exact amount of your outstanding loan. This is called the <em>repayment amount<\/em>, including interest and the reinvestment fee. <\/p>\n<h4><strong>What if the sale price is less than the outstanding loan?<\/strong><\/h4>\n<p>If the selling price of the home is less than the amount you still owe the bank, then there is an outstanding amount. This is called a <em>residual debt<\/em>. <\/p>\n<h4>Options in the event of a residual debt:<\/h4>\n<ul>\n<li>Pay off residual debt immediately: If you have sufficient savings, pay off the residual debt immediately.<\/li>\n<li>Refinancing residual debt: Some banks offer the option of taking out a separate loan to pay off the residual debt in installments.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>What if the sale price exceeds the outstanding loan?<\/strong><\/h4>\n<p>If your home yields more than the outstanding loan, you&#8217;ll keep the surplus. You can spend this amount freely. <\/p>\n<h4>Surplus options:<\/h4>\n<ul>\n<li>New home financing: Many sellers use the excess value to finance the purchase of a new home.<\/li>\n<li>Save or invest: Set aside surplus for future investments.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><strong>2.2. Stap 2: Overweeg je opties <\/strong><\/h3>\n<h4><strong>2.2.1.  <\/strong><strong>Option: Pay off mortgage loan on sale<\/strong><\/h4>\n<p>One option is to pay off your current mortgage loan and take out a new mortgage. Old loans usually have a higher interest rate than current ones. So nowadays you can borrow a higher amount for a lower interest rate. Just be aware that this has a cost:   <\/p>\n<ul>\n<li>Mortgage fees: the outstanding amount and interest.<\/li>\n<li>Notary fees (filing fees): costs to have the notary cancel the old loan and enter into a new one.<\/li>\n<li>The reinvestment allowance: a lump-sum compensation for paying off your loan earlier than planned.<\/li>\n<li>Administrative fees at the bank.<\/li>\n<li>Residual debt if the sale price is less than the outstanding loan (see item 2.2.).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><strong>2.2.2. Optie: Hypothecaire lening overdragen naar een nieuwe woning <\/strong><\/h4>\n<p>Some banks allow you to take your existing loan with you to a new home. This is called <em>pledge switching<\/em>. This also comes with a cost:  <\/p>\n<ul>\n<li>Pledge exchange fees: notary fees to cancel the old loan and take out a new one.<\/li>\n<li>Credit review (filing fees): If your new home costs more than your current outstanding balance, the bank may charge a fee for it.<\/li>\n<li>Valuation: Sometimes banks require a professional valuation of your new home.<\/li>\n<li>Registration fee of 1%.<\/li>\n<li>Mortgage rights of about 0.5%.<\/li>\n<li>Administrative fees at the bank.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4>Terms of a pledge exchange:<\/h4>\n<ul>\n<li>You have permission from your bank.<\/li>\n<li>The new home has sufficient value to serve as collateral.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_6556\" aria-describedby=\"caption-attachment-6556\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-4715\" src=\"https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Gebouwgevel-bank-1024x576.png\" alt=\"Mortgage loan on sale_Building facade bank\" width=\"800\" height=\"450\" srcset=\"https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Gebouwgevel-bank-1024x576.png 1024w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Gebouwgevel-bank-300x169.png 300w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Gebouwgevel-bank-768x432.png 768w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Gebouwgevel-bank-1536x864.png 1536w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Gebouwgevel-bank.png 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-6556\" class=\"wp-caption-text\">Image: building facade bank<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<h2><strong>4. Tips when considering your loan<\/strong><\/h2>\n<ul>\n<li>Consult your bank early.<\/li>\n<li>Check the term of the new loan.<\/li>\n<li>Check the terms of your loan agreement.<\/li>\n<li>Check the selling price of the new home carefully.<\/li>\n<li>Compare your current and new interest rates and terms.<\/li>\n<li>Consider taxes (registration fees, mortgage duties).<\/li>\n<li>Keep in mind <a href=\"https:\/\/www.appartement.be\/kosten-aankoop-huis-of-appartement\/\">all the costs associated with buying a home<\/a> (moving expenses, administration fees with the municipality, etc.).<\/li>\n<li>Look at the energy standards of the new home: banks sometimes offer more favorable loans to energy-efficient homes.<\/li>\n<li>Get a repayment statement so you know exactly how much you still have to pay (including reinvestment fee and other charges).<\/li>\n<li><strong>Note:<\/strong> Do not rely on estimates, but request specific fees and terms from your bank and banks you are interested in.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_6558\" aria-describedby=\"caption-attachment-6558\" style=\"width: 800px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-4716\" src=\"https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Notarisstempel-op-document-1024x576.png\" alt=\"Mortgage loan on sale_Notary stamp on document\" width=\"800\" height=\"450\" srcset=\"https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Notarisstempel-op-document-1024x576.png 1024w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Notarisstempel-op-document-300x169.png 300w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Notarisstempel-op-document-768x432.png 768w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Notarisstempel-op-document-1536x864.png 1536w, https:\/\/www.appartement.be\/wp-content\/uploads\/2024\/12\/Hypothecaire-lening-bij-verkoop_Notarisstempel-op-document.png 1920w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><figcaption id=\"caption-attachment-6558\" class=\"wp-caption-text\">Image: Notary&#8217;s stamp on document<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>Sources: <a href=\"https:\/\/www.bouwenwonen.net\/artikel\/Wat-met-je-hypotheeklening-als-je-jouw-huis-verkoopt\/45785\" target=\"_blank\" rel=\"noopener\">Construction and Housing<\/a><\/p>\n<p><b>Would you like to cite this article as a source? Then use: <\/b><\/p>\n<p><em>Stiasteny, L. (2024, Dec. 3). What happens to your mortgage loan when the home is sold? Apartment.com. Consulted on (date XX\/XX\/202X), from https:\/\/www.appartement.be\/hypothecaire-lening-bij-verkoop-van-je-woning\/ <\/em><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Related articles:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.appartement.be\/5-soorten-woonleningen\/\">5 types of home loans<\/a><\/li>\n<li><a href=\"https:\/\/www.appartement.be\/je-woonlening-herzien-hoe-begin-je-eraan\/\">Reviewing your home loan: how to get started?<\/a><\/li>\n<li><a href=\"https:\/\/www.appartement.be\/hypothecaire-lening\/\">Getting a mortgage loan: roadmap<\/a><\/li>\n<li><a href=\"https:\/\/www.appartement.be\/kosten-aankoop-huis-of-appartement\/\">All costs when buying a house or apartment<\/a><\/li>\n<li><a href=\"https:\/\/www.appartement.be\/documenten-aanvraag-woonlening\/\">What documents do you need when applying for a home loan?<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What happens to your mortgage loan when you sell your home? Contents What is a mortgage loan? What happens to your mortgage loan when the home is sold? Tips when considering your loan &nbsp; 1. What is a mortgage loan? A mortgage loan is a loan that you use to buy a house, apartment or [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":6554,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1116],"tags":[2704,2703,2702],"class_list":["post-6563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sell","tag-home-loan-when-selling-home","tag-home-sale-loan","tag-mortgage-loan-on-sale-of-home"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/posts\/6563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/comments?post=6563"}],"version-history":[{"count":0,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/posts\/6563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/media\/6554"}],"wp:attachment":[{"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/media?parent=6563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/categories?post=6563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.appartement.be\/en\/wp-json\/wp\/v2\/tags?post=6563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}