Ill just start off and say hi, my name is Alan. I found this forum to answer a question I have, and potentially future questions.

The details:
I paid $63,000 for my property last May. It consists of 3.6 acres and an older 1970s, deregistered, mobile home. I have a mortgage on it for $47,000 (a little less now). If I decide to sell this place and buy another, I can transfer the mortgage as it is transferrable. So

What I would like to know is:
If I sell the place for $65,000 and transfer my mortgage of $47,000 onto a new place....how much money will I get out of the sale on my property?
The math says I would have $112,000 to spend, but that doesnt make total sense. Im getting a bald spot from scrathing my head so much.
Thanks,
-Alan

That depends on the details of how you transfer your mortgage. You're saying you can transfer $47,000 to a new property. Does that count toward a down payment? Can you add the $65,000 to that or is that a problem? What I mean is, let's say you buy a $200,000 place. Does your bank let you transfer the $47K and also put down the $65K, and now you owe the difference? OR Will they say You can transfer the $47K, but if you want to borrow more money, you'll need a second mortgage. The $47,000 is actually money you OWE, not money you have, so whatever place you get, it seems you're putting the $47,000 down on it, but you still have to pay that back, as opposed to the $65,000 which would simply reduce the amount owed on the new property by that amount because you've already paid it.

More information is needed.

alright well I will call my bank tomorrow and get more information.
I know its money I owe, and I am paying for it...but wether I get the credit for it on my next purchase or not is what I am after, and will have to call my bank for the answer.Thanks for the response.

Alan - The concept you might want to keep in mind is that you own your equity, not your home.

You still have only 18K (your equity) to use as a down payment. If you transferred your existing mortgage to the new property you would still need another 135K mortgage that would be in subordinate position to your 47K first. I'm not familar with Canadian mortgages but in the US such a loan would not have very attractive terms. Unless your present 47K loan has some kind of super attractive terms, you would be better off getting a whole new loan for 182K. Also remember that these figures do not include sales costs that you could incur to sell your existing property.

in Canada one must own a residence for 1 year before selling, to avoid capital gains taxes. If you sell a property and make a profit before the year is up the profit is taxable income so to speak. Licensed agents excluded.
Thats what how Ive always been told anyways. I called my bank but its almost closed and all the personal bankers were "busy".
My terms are pretty good, take that with a grain of salt as its my first mortgage. I can increase payment frequency and amount, as well as prepay 15 or 20% each year. I think I can pay it all out anytime without a penalty also.

Capital gains ??? In your scenario your capital gains will be only 2k, not much to worry about.

Again bottom line Alan if you buy a 200k house and your proceeds from your existing home are 18K you're going to need a mortgage of 182K unless you come in with more of your own money. Whether you use your existing mortgage for part of it or not does not change the fact that your new home will be mortgaged for 182K.

Also, when I say "terms" I primarily mean rate.

ok, it makes sense now....and the property is worth around $90,000 now, I could get about $115K if I subdivided. I just used 65K as an example.
Thanks for clearing the question up for me tho.