What happens to the mortgage when you sell your house?

Early repayment of the loan

If you still have a mortgage loan for the purchase of your house, when you sell it, you will have to pay the outstanding capital as well as prepayment penalties to the bank. The prepayment penalties amount to 3 months of interest for individuals and 6 months of interest for companies.

Release of the mortgage

Home loans are secured by a mortgage that typically lasts for 20 to 30 years. If you sell your house during this period, you will have to pay a mortgage release fee. This is a notarial deed in which the bank that granted you the loan relinquishes its lien on your property. The costs amount to approximately 0.7% of the borrowed amount. If you sell because you have purchased a new property and continue to borrow from the same bank, you may be able to transfer the loan from one property to another.