Sell Now Even With a Mortgage: Can You Sell Your Georgetown Home if You Still Owe Money?

Can I sell my home if I still have a mortgage?

Can I really sell my house if I still have a mortgage? Yes — and here’s how to do it fast.

Quick answer for Georgetown home sellers

Yes. You can sell your Georgetown home even if you still have a mortgage. Most sellers do. The mortgage is paid off at closing using the sale proceeds. You must get a mortgage payoff, clear any liens, and work with a lawyer or title company to finish the sale.

This post tells you the exact steps, plain and simple. Read it and you will know how mortgages and liens affect your sale in Georgetown, Ontario.

What is a mortgage and what is a lien? (Simple terms)

• Mortgage: A loan you took to buy the house. The bank holds the mortgage as security. If you don’t pay, the bank can sell the house.
• Lien: A legal hold on your property. It can be from a mortgage, a line of credit, a contractor’s claim, or a court judgment. A lien must be cleared before the buyer gets a clean title.

Both show up on a title search. Buyers want a clean title. That means liens get paid or removed before closing.

How selling works when you still have a mortgage

1. Get a mortgage payoff statement. Contact your lender and ask for a payoff amount that includes interest up to a specific closing date. This is not the same as the balance on your statement.
2. Add selling costs. Payoff plus realtor fees, legal fees, adjustments, and any liens = what must be paid from sale proceeds.
3. Lawyer does a title search. The lawyer confirms mortgages and liens. They prepare the mortgage discharge and pay the lender at closing.
4. Closing day. Buyer’s money flows in. The lender gets paid. Any leftover goes to you.

If your sale price is higher than what you owe, you walk away with cash. If your sale price is lower than what you owe (a shortfall), you need the lender’s permission or another plan.

Options if you owe more than your home sells for (shortfall)

• Ask the lender for permission to sell short. In Canada, lenders may accept a shortfall but it’s not guaranteed.
• Pay the difference yourself from savings or another loan.
• Negotiate with second mortgage or HELOC holders — they must be paid or remove their lien.
• Consider delaying the sale if market timing can help.

Note: Short sales are less common in Canada than in the U.S., but they happen. Talk to your lender and your lawyer early.

Common liens that can stop a sale in Georgetown

• Second mortgage or line of credit (HELOC)
• Construction lien (under Ontario’s Construction Act)
• Judgment lien from unpaid debts or court rulings
• Property tax arrears or utility arrears (city can place holds)

A construction lien is common after renovations where a contractor wasn’t paid. It’s serious. It must be cleared or challenged before closing.

Costs and closing details Georgetown sellers must know

• Mortgage payoff: Lender provides this. It includes the outstanding principal plus interest to the closing date and any discharge fees.
• Discharge fee: The lender or your lawyer may charge to remove the mortgage from title.
• Legal fees: Your lawyer prepares documents and completes the transfer.
• Realtor commission: Typically agreed in your listing agreement.
• Capital gains tax: If the house is your principal residence, you’re likely exempt. If not, talk to an accountant.
• Municipal charges: Ensure property taxes are paid up-to-date in Halton Hills.

Buyers usually pay Land Transfer Tax in Ontario. Sellers don’t pay that, but it can affect buyer budgets.

Mortgage portability — a huge benefit for many sellers

Many Canadian mortgages offer portability. That means you can move your mortgage to a new property and avoid penalties. If you plan to buy in the Georgetown area or nearby, ask your lender about portability before you list. It can save you thousands.

If your mortgage is not portable, you’ll get a payout or face a penalty. Ask your lender for the exact cost.

How title and lien searches work in Georgetown

Your lawyer runs a title search on the property. This search shows:

• Existing mortgages
• Registered liens or claims
• Easements or rights of way

If anything shows up, your lawyer will tell you what needs to be paid or removed. In some cases, you may need court action to remove an improper claim.

Practical checklist for Georgetown home sellers with a mortgage

• Contact your lender for a payoff statement with a specific closing date.
• Tell your realtor you have a mortgage and any second debts.
• Get a pre-listing title check from a lawyer (optional but smart).
• Fix or clear any liens before offers if possible (especially construction liens).
• Price your home with net proceeds in mind: sale price minus payoff and costs.
• Decide if you will port, refinance, or pay out the mortgage at closing.
• Keep funds ready for closing day if needed.

Local market tips for Georgetown, ON sellers

• Georgetown is part of Halton Hills. Buyers here look for good schools, commutes to Toronto, and local amenities. Highlight those in marketing.
• Homes near public transit routes to Toronto or near Georgetown GO attract buyers quickly.
• If the market is competitive, you may sell fast and pay off your mortgage easily. If the market is slow, prepare for longer timelines and possibly price adjustments.
• Work with a local realtor who knows Georgetown closing timelines and common local liens.

Common pitfalls — avoid these mistakes

• Listing without checking for liens. This delays closing.
• Not getting a payoff statement early. Payoff amounts change daily.
• Ignoring a second mortgage or HELOC. These must be paid or discharged.
• Assuming the lender will forgive a shortfall. Always get written confirmation.
• Forgetting prepayment penalties. Ask your lender about penalties and portability.

How a local realtor and lawyer help you close cleanly

• Realtor: Prices your home, markets it to Georgetown buyers, negotiates offers, and times your closing.
• Lawyer: Runs the title search, prepares the deed, handles mortgage discharge, and ensures funds are handled correctly.

Use both. A strong local team gets your house sold and clears liens fast.

When selling fast is the priority

If you need a quick sale, you have options:

• Price aggressively to attract many buyers.
• Use a cash buyer or investor. They often close fast and can handle liens, but expect a lower price.
• Work with your lender to get a short payoff date and a clean payoff statement.

Fast sales work well in Georgetown when priced right and marketed correctly.

Final checklist before you sign an offer

• Confirm payoff amount from lender with closing date.
• Confirm all liens are disclosed and planned for.
• Confirm buyer’s financing is conditional or firm.
• Confirm moving and closing dates align.
• Ask your lawyer to explain final statement so you know your net proceeds.

Call to action — local help you can trust

Selling with a mortgage is routine. But it is easier when you lean on local experience. For clear, fast answers and a plan that protects your equity in Georgetown, contact a local realtor and lawyer today.

Contact: Tony Sousa, Local Realtor — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca

FAQ — Selling a Georgetown home with a mortgage (answers every seller needs)

1. Can I sell my house if I still have a mortgage?

Yes. The lender is paid from the sale proceeds at closing. Get a payoff statement early.

2. What if there is a second mortgage or HELOC?

All registered mortgages and HELOCs are liens. They must be paid or removed at closing. Speak to the lender and your lawyer.

3. What is a construction lien and how do I remove it?

A construction lien is a claim by a contractor under Ontario’s Construction Act. You must pay or challenge it. Lawyers can remove improper claims, but plan for time and cost.

4. Will selling pay off my mortgage penalty?

If your mortgage has a penalty for early payout, the lender calculates it. Sometimes portability avoids penalties. Ask your lender for the exact penalty.

5. Who checks for liens?

Your lawyer performs a title search. They will list all registered claims and tell you what to do.

6. Can the lender stop my sale?

A lender can enforce its mortgage if you don’t follow the terms. But lenders normally get paid at closing. They rarely stop a sale if they are being paid from the proceeds.

7. What happens if the sale price is less than my mortgage?

You have a shortfall. You must cover the difference or negotiate with the lender. Lenders may accept a shortfall in certain cases, but get written permission.

8. Do sellers pay Land Transfer Tax in Georgetown?

No. Land Transfer Tax is usually paid by the buyer in Ontario. Georgetown is in Halton Hills; Toronto municipal tax is separate and only applies to Toronto.

9. Should I get a pre-listing title search?

Yes. It helps reveal liens early so you can clear them before offers arrive.

10. Who should I call in Georgetown for help?

Call a local realtor and a local real estate lawyer. For direct local help, contact Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca

Closing note: Selling a house with a mortgage in Georgetown is normal. Plan early, get your payoff, clear or manage liens, and use a local team that knows Halton Hills rules. Do that, and the sale will close cleanly.