Have you just sold your property and you're wondering what this means for your mortgage?
| Founded year: | 2000 |
| Country: | Australia |
| Funding rounds: | Not set |
| Total funding amount: | Not set |
Description
Most Australians who sell their home don’t own their property outright. So, understanding what happens to your loan when you sell is knowledge worth having.How your mortgage works
When you first took out your home loan, your chosen lender places a mortgage on the property you bought.
That mortgage shows up on the property title because, as the lender, they have a legal interest in that property. Holding the mortgage means that, if you don’t meet your repayments and default on the loan, they can pursue legal avenues to recover their money, and that may include selling your property.
If you sell the property while it still has an active mortgage, the lender obviously loses their right to sell it. To protect themselves from this eventuality, you must settle the full amount of your mortgage – called a discharge of mortgage – on the settlement day with the incoming buyer.
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