Can't afford your mortgage? Here's what you need to know before you sell your home

mentions additional economic concerns over Canadian household debt as pandemic-era government supports ended and interest rates sharply rose."By late-2021, Canada’s household debt-to-income ratio had exceeded pre-pandemic levels. And it’s remained elevated ever since," the RBC Proof Point report reads.

The bank predicts Canada’s mortgage delinquency rates could rise by more than one-third of current levels over the next year, and consumer insolvencies could go up by almost 30 per cent over the next three years, however, it expects most financial troubles to be manageable—at least in the short to medium term.If you anticipate being unable to make your mortgage payments, you may choose to sell your home.

Determine your minimum sales price: Figure out how much money you need to make from selling your home in order to cover sales costs, listing and agent fees, legal fees and any penalties that may be involved in paying off your current mortgage early. Tran says for fixed-rate mortgages with pre-payment penalties based on the interest rate differential, this can often cost thousands of dollars. In some cases, your mortgage can cost you more than your home.

"If you if you have that data of recent sales in the area comparable to your home, then yeah, that can definitely give you a rough idea of what your home could potentially sell for," Tran said. "But again, you know, there's other factors, external factors, you can’t control. It really depends on, the time of the year, the activity in the real estate market, but yeah, that's definitely a good indicator.

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