Selling a House in Canada
Selling a home affects your mortgage as much as your moving plans. If you sell before your term ends, you'll pay off, port or transfer the mortgage.
Your mortgage when you sell
Paying off a closed mortgage before the term ends usually means a prepayment penalty, set by your contract. Some mortgages can be ported to a new home or assumed by the buyer. Ask your lender for the penalty amount early.
Seller costs
Expect legal or notary fees (CMHC puts buyers' legal fees at about $500 or more; sellers pay their own), any real estate commission, and adjustments for prepaid property tax.
Market context
Canada's new housing price index is 120.2 (Sep 2026), down 2.0% vs 12 months earlier. Housing starts are running at 248,896 units, annualized (Sep 2026). These are new-home measures; we don't publish resale prices because MLS® data isn't openly licensed.
Taxes when you sell
Gains on a home that was your principal residence for every year you owned it are generally not taxed, but you must report the sale on your tax return. Since 2023, homes held for less than 12 months may be treated as business income under the federal property flipping rule, with exceptions for life events.
Estimate the penalty to break your mortgage
Calculator
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Estimated prepayment penalty
$3,000
Three months' interest is higher
| Method | Amount |
|---|---|
| 3 months' interest | $3,000 |
| Interest rate differential (IRD) | $0 |
For closed fixed-rate mortgages. Variable-rate penalties are usually 3 months' interest. Lenders use their own IRD method and may add administration, discharge and reinvestment fees; only your lender can give the exact amount.
Frequently asked questions
Can I take my mortgage to my next home?
Many mortgages are portable, which lets you move the balance and rate to a new property and avoid a penalty. Check your contract and ask your lender before you list.
Sources
Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.
Informational only, not financial advice. Data as of the release snapshot generated 2026-11-12.