Picture this: you’ve raised your family, you’ve had a full career, you’re getting ready to retire and as if this wasn’t already exciting enough, your mortgage is this close to being paid off. It’s a milestone that every homeowner dreams of. Owning your home full and clear, no more mortgage payments–isn’t that an exhilarating prospect? 

If this is your reality, you might be thinking, “I’ve paid off my mortgage, now what?” Do you keep your home and live mortgage-free? Do you sell the home, cash out some equity? In this post, we’re discussing the pros of selling your home after paying off your mortgage. 

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Financial Reasons to Sell Your House After it’s Paid Off

It might be tempting to live in your house for as long as possible after the mortgage is paid off. After all, there’s likely never been a time in your adult life when you haven’t had a mortgage or rent payment. 

However, there are some benefits to selling your home when you have no mortgage to pay off, that you might not have thought about so here are a few things to consider:

• You can save money! For many people, selling a home before the mortgage is paid off means that part of the profits of the sale go towards paying off the existing mortgage and paying any fees associated with ending your mortgage term early. Not so, when you are mortgage free!
• You will have more money to pay off other existing debts. If you have credit card debt or any other debt you want to clear, selling your home can help you eliminate those pesky monthly debt payments. 
• You likely have a lot of built-up equity. If you purchased your home 20-30 years ago, it’s likely increased in value significantly. For example, the average price of a home in Ottawa in June 2012 was about $352,800 according to the Ottawa Real Estate Board. In June 2023, the average price was $746,445. That’s a pretty significant increase over the past 11 years. 
• You’ll have more money to invest in your retirement. Selling your home when you have no mortgage to pay back, not only means you’ll get more profit. It means you’ll have more funds to set aside for retirement. For many homeowners, this could mean the difference between a modest retirement vs. an exceptional one. 
• Your next home could be less expensive. Even if you decide to buy something new after selling your mortgage-free home, chances are you are downsizing or smart sizing and the cost of your next home will be less than the equity you got from selling your previous home. 

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Looking for more resources to help you downsize your home? Read these posts next: 

• Is it Better to Buy or Rent as a Senior?
• What are the Best Ottawa Neighbourhoods for Retirees?

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Other Signs You Should Sell Your Home Even if the Mortgage is Paid Off

For most homeowners, selling a home is filled with mixed emotions! It is not strictly a financial decision. There could be factors in your life that have nothing to do with equity or monthly expenses that might mean selling your home is the right decision.

Here are some signs it might be time to sell your home:

• You’re tired of keeping up with maintenance. 
• You need to declutter.
• Your children have moved out and the space feels too big now. 
• You’re looking for a change of scenery or want to be closer to family.
• Moving takes energy, you have the health and ability to do it now.
• You’d like to retire care-free and travel or change your lifestyle, unburdened by your home.

The Bottom Line

Selling your home as someone who is retired or close to retirement can feel stressful. Maximizing your sale is more important than ever. That’s why it’s so critical to work with an experienced Ottawa real estate team. With the proper advice, preparation, marketing, and negotiation, you can rest easy knowing you are leaving nothing on the table. 

Learn more about the results we get for our clients. Read our reviews here.

Whether you’re thinking about smartsizing, looking forward to your retirement, or just thinking about selling your home at any stage in life, we’re here to help! email us directly at mail@chellteam.com or call 613.829.7484.