If you're thinking of moving house in Girona and you still have a mortgage, you're probably asking yourself the same question as almost all of our clients: What should I do first, sell or buy? And right behind it comes the second one: What happens to my current mortgage in the meantime?
Let's explain it straight. In this guide, we'll tell you how a... mortgage for moving house, What options do you have, and how can we coordinate everything so that selling your current home and buying the new one go smoothly? (If you're searching in Catalan, it's called...) mortgage change of house, It's exactly the same thing: changing homes when you still have an outstanding mortgage.
Your current mortgage is tied to your current home. It doesn't "transfer" to the new house: when you sell, that debt is paid off with the sale proceeds, and to buy the new house you need a new mortgage (or use the remaining proceeds from the sale as a down payment).
What you have left after selling and paying off your mortgage is the foundation of your new purchase. Here's a rough example, using round numbers and before expenses and taxes: if you sell for €250,000 and have €100,000 left on your mortgage, after paying it off you'll have around €150,000 that you can use for the down payment and closing costs of your new home. The clearer this figure is from the start, the better you can plan how much financing you actually need.
Your bank can issue you a certificate showing the exact outstanding balance as of a specific date. This is the figure used on the day of signing to pay off the mortgage, and it also allows you to calculate how much money you'll have left over. Keep in mind that paying off a mortgage early may incur an early repayment fee: the law limits this fee, and the limit depends on the interest rate and when you signed the mortgage, so it's advisable to check with your bank before setting any dates.
There isn't just one way to do it. These are the three we found, with their advantages and risks.
You buy the new house while your old one is still on the market. It sounds convenient, but it means the bank has to finance the new home while the old mortgage is still active, which requires ample credit or a bridging loan. Plus, you're paying for two properties at once, and if the sale drags on, you'll face pressure to lower the price to close the deal.
You sell first, pay off the mortgage, and then buy with the freed-up money. It's the most financially secure option, but it requires you to figure out where you'll live in the interim between the two transactions, and with the urgency of finding a house before that window runs out.
This is the method that works best for us in practice: synchronizing the sale and purchase so they are signed consecutively, at the same notary's office, and on coordinated dates. This way, there's no waiting period, no two mortgages at the same time, and everyone—buyer, seller, and banks—is on the same page. We'll explain this method step by step below.
It's a coordinated operation that requires a high level of administrative precision. This is how we handle it at KyH Grand Capital:
For this to go smoothly, everything mentioned above must be prepared before the signing day: the new mortgage reviewed and approved by the bank, the documentation for both properties in order, and the sale and purchase dates perfectly aligned. Furthermore, by law, the bank must provide you with the pre-contractual documentation for the new mortgage well in advance of the signing, so the timeline needs to be planned from the beginning, not at the last minute.
Each bank assesses your case differently, but typically they will finance up to a certain percentage of the lower value between the purchase price and the appraised value of the new property. You cover the rest with what you have left over from the sale of your previous home and your savings. That's why it's so important to calculate how much your sale will free up before you start, and not take it for granted.
When buying and selling are linked, a delay in one affects the other. These are the points where transactions become most complicated:
Selling a property involves costs that you should be aware of, such as municipal capital gains tax and potential capital gains tax if you sell for more than you paid. If the property you're selling is your primary residence and you reinvest the proceeds in a new primary residence within the legally stipulated timeframe (generally two years), that gain may be fully or partially tax-exempt, depending on the reinvestment amount. Every situation is different, so it's best to confirm this with a tax advisor before signing. We're not tax advisors, but we can help you understand the figures for that discussion.
To avoid slowing down the operation, prepare in advance:
At KyH Grand Capital we take care of the entire tour: the selling your current home, the mortgage management of the new and the buys, We coordinate the dates so you don't have to worry about a thing. A single team from start to finish means fewer intermediaries, fewer cross-calls, and one person who knows your entire operation timeline.
If you're already thinking about moving, the first thing to do is find out how much your current home is worth and how much money you'd have left after paying off the mortgage. Everything else starts with that information.
Yes, that's the most common way. The current mortgage is paid off with the money from the sale of your home, and the new purchase is financed with a new mortgage and whatever is left over from that sale.
It depends on your situation, but the simplest thing is usually to coordinate both operations at a notary's office: first the property is sold, the old mortgage is paid off with that money, and then the mortgage for the new property is formalized to close the purchase.
That's not necessarily the case. If the sale and purchase are coordinated to be signed sequentially, the old mortgage is paid off before the new one begins, so they don't coexist.
It is paid off with the proceeds from the sale. The bank issues a certificate with the exact debt amount as of the signing date, and that amount is settled at the notary's office.
There might be one. The law limits the amount, and it depends on your mortgage interest rate and when you signed it, so it's best to check with your bank before setting any dates.
There may be municipal capital gains tax and capital gains tax for income tax purposes, but if you reinvest the proceeds in a new primary residence within the legal timeframe, the gain may be exempt. It's advisable to confirm this with a tax advisor based on your specific circumstances.
It depends on when the current property is sold and how well the mortgage and paperwork are prepared. The sooner the entire timeline is planned, the lower the risk of delays.
That's why we listen before we act, we speak clearly, and we support you from beginning to end.
And tell us about your case
+34 644 77 47 32
Passeig Capellades, 4, 17840 Sarrià de Ter, Girona
info@kyhcapital.com
