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How can you sell a property and keep your mortgage?
Summary
Are you considering selling your main residence in order to buy another one while your mortgage is still ongoing?
With interest rates having risen sharply in recent years, many homeowners prefer to avoid having to fully repay their existing loan before taking out a new one.
The idea of keeping an existing mortgage with a favorable interest rate is appealing, especially since it would avoid paying early repayment penalties.
But is this really possible in practice?
In this article, we take a closer look at the principle of mortgage portability or transferability, its advantages, the strict conditions required to benefit from it, and the steps involved in implementing it. Discover how to sell a property without immediately repaying your mortgage and determine whether this strategy is suitable for your real estate project.
Do you necessarily have to repay your mortgage when selling your property?
General rule: selling a property leads to repayment of the ongoing loan
When a property is sold before the end of the mortgage term, the general rule is that the mortgage must be repaid at the time of sale.
Legally speaking, nothing prevents you from selling a property with an outstanding mortgage, and there is no minimum ownership period imposed by law. However, in most cases, banks require the loan to be repaid when the property is sold.
This is because the mortgage is tied to the property being financed: the bank has generally taken a guarantee (mortgage or guarantor) on the property. As such, it is entitled to demand repayment as soon as the property is sold.
The proceeds from the sale are therefore used to repay the outstanding loan balance and, where applicable, to pay early repayment penalties (generally equivalent to six months of interest, capped at 3 % of the outstanding capital).
The exception: mortgage portability
Mortgage portability (or transferability) is a mechanism that allows an existing mortgage to be transferred to a new property instead of being repaid at the time of sale.
In other words, the borrower keeps the original loan (same interest rate, same remaining loan term, same repayment conditions) to finance the purchase of another property, without interrupting repayments.
WARNING
The portability clause must be included in your original loan agreement. In practice, very few recent mortgages include this option, and even when the clause exists, the bank must give its explicit approval to validate the loan transfer.
"A huge thank you to the Maison Kyka teams who supported me with professionalism and kindness throughout my entire real estate project. From the very first steps of identifying properties based on my criteria, needs and wishes — including remote visits from the other side of the world — to building the offer, 3D property design, construction monitoring, decoration and advice, everything was smooth, clear and reassuring.” Arnaud Lludriguez
Why keep your mortgage after selling a property?
Although mortgage portability is rare, it allows you to:
- benefit from an attractive interest rate;
- avoid paying additional costs (early repayment penalties, application fees, etc.);
- simplify and speed up the financing of a new property.
Benefit from an interest rate lower than current market rates
In recent years, mortgage interest rates have risen sharply. Between 2022 and 2023, average 20-year mortgage rates increased from around 1 % to over 4 %. From the end of 2024 onwards, rates began to decline and stabilized around 3 % in 2025.
In this context, keeping an older mortgage with a low interest rate is a valuable advantage. You continue repaying at the original rate, often significantly lower than current rates, which can save you thousands of euros in interest over the remaining loan term.
By keeping your mortgage at a favorable rate, you maintain lower monthly payments than you would if you had to take out a new loan at market rates.
NOTE
This represents a major financial advantage for second-time buyers, who often face less favorable borrowing conditions than first-time buyers.
Avoid penalties and costs associated with a new mortgage
Another benefit of mortgage transferability is the savings it generates.
On the one hand, you avoid paying early repayment penalties to the bank, since the loan is not repaid (or only partially repaid). These penalties, capped at 3 % of the outstanding capital, can represent a significant amount.
On the other hand, by keeping your existing mortgage, you avoid certain costs associated with a new loan: application fees, guarantee costs (mortgage or guarantor) on the new property, potential brokerage fees, etc.
- For owner-occupiers, this allows them to retain more of the capital gain from selling their main residence.
- For investors purchasing rental property, keeping a low-interest mortgage on a new rental asset improves the profitability of the investment.
NOTE
Even if transferring a mortgage may involve administrative fees or the re-registration of guarantees, these costs are generally lower than the total cost of taking out a new mortgage. Ultimately, keeping your existing loan reduces the overall cost of the buy-sell transaction.
Simplifying the financing of the new property
Keeping your existing mortgage can also make it easier to complete your new real estate project. If the bank approves the transfer, you do not need to start the loan process from scratch (new application, credit approval delays, etc.).
Maintaining your mortgage provides an operational financing solution for your new house or apartment. This can be particularly valuable in a competitive market where timing matters, as it reduces the time between signing the preliminary sale agreement and the final deed.
Mortgage portability can therefore act as a project accelerator, avoiding the overlap period during which you repay one loan while waiting for new financing.
Under what conditions can you keep your mortgage after selling your property?
Mortgage transferability is subject to several conditions set by the loan agreement and/or the bank:
- Transfer clause included in the contract: your original loan agreement must include a mortgage portability or transferability clause. Without this written clause, the bank has no obligation to allow you to keep the loan.
- Bank approval and review of your new project: even when the clause exists, the bank must approve the transfer. It will assess your current financial situation and the characteristics of the new property to ensure repayment capacity and sufficient guarantees. In some cases, the bank may refuse the transfer despite the existence of a portability clause.
- Price of the new property: in most cases, banks require the purchase price of the new property to be equal to or higher than the outstanding loan balance. If you buy a cheaper property, the bank may require partial repayment.
- Nature of the new property: the bank may require the new property to be of the same type as the original one. For example, a loan originally financing a main residence must be transferred to another main residence.
- Short time frame between sale and purchase: loan transfer is only possible if the sale and purchase occur within a short period. Generally, the new purchase must take place within 3 to 6 months following the sale. Some banks may allow a longer period (up to one year), but this is rare.
- Absence of a mortgage that must be repaid on the original property: if the loan was secured by a mortgage, it must be released upon sale. In practice, the existence of a mortgage often makes portability difficult unless the bank accepts a nearly simultaneous release and re-registration on the new property.
- Regulated or assisted loans (PTZ, PAS, etc.): the new property must meet the conditions applicable to the loan, especially if the transfer occurs within six years of the original loan.
- Other criteria: no payment incidents, remaining a client of the bank, approval from the guarantor if applicable — each bank may impose additional conditions.
Since the 1980s, very few mortgages have included transferability clauses, and with rising interest rates in recent years, banks have even less incentive to allow borrowers to keep low-rate loans.
NOTE
In 2024, a legislative proposal was submitted to make mortgage portability clauses mandatory for all future mortgages. It was referred to the Economic Affairs Committee. Until then, borrowers must negotiate on a case-by-case basis with their bank.
In summary, mortgage transfer is an attractive option but reserved for very specific situations. It requires a contractual clause, a strong financial profile, and a purchase project that meets the bank’s requirements. It is therefore not automatic, and French banks remain fairly reluctant to grant this facility.
Advice for keeping your mortgage after selling a property?
Check for a portability clause in your mortgage agreement
Not all borrowers have a mortgage that includes a portability clause. Without this explicit mention, no bank is required to accept a loan transfer after the sale of your home.
You must therefore identify this clause in your contract and understand its conditions: transfer deadlines, minimum purchase price, property type, and any exclusions. If the clause does not exist, alternative solutions such as refinancing, a bridge loan, or early repayment must be considered.
Present a solid project to the bank
Even when a portability clause exists, banks require a reassessment of your financial situation. This includes income, debt ratio, professional stability, and the characteristics of the property you intend to buy. Your project must be clear, well-documented, and financially sound. Presenting a signed preliminary sale agreement significantly strengthens your request.
NOTE
The quality of communication with your bank advisor can make all the difference. If the bank gives preliminary approval, request written confirmation detailing the transfer terms: remaining loan duration, interest rate, guarantee type, and any specific conditions.
Anticipate coordination between sale and purchase
Most contracts impose a maximum time frame for transferring the mortgage after the sale. Exceeding this period may invalidate the transfer and force full early repayment. Careful coordination between the sale of your current property and the purchase of the new one is therefore essential.
NOTE
When timelines do not align perfectly, a bridge loan can help maintain your initial plan. It is a temporary but valuable solution for smoothing the transition between two properties.
Adapt loan guarantees to the new property
If the mortgage was secured by a property mortgage, selling requires releasing that guarantee. Transferring the loan then requires setting up a new mortgage or guarantee on the new property. This involves additional costs (release fees, notarial deeds, registration fees) and close cooperation between your bank and notary.
Adjust borrower insurance to the new project
Borrower insurance must also be adjusted. If you keep the same loan for a new property, the insurance must follow and adapt to the new situation: updated amounts, new property, and adjusted remaining term.
This can also be an opportunity to review your insurance contract or consider switching insurers if more advantageous.
Get support from professionals
A mortgage broker can quickly determine whether your bank offers mortgage portability and negotiate conditions on your behalf. They can also propose alternative solutions (refinancing, combined bridge loans) if portability is refused.
Informing your notary of your transfer project is also essential. They can coordinate the release of guarantees on the old property and the setup of guarantees on the new one.
Thanks to its personalized approach, Maison Kyka helps coordinate every step of your project — from sale to purchase, including securing your mortgage. We connect the right professionals and provide the tools needed to present a strong, coherent, and convincing case to banks.
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