Selling a property while still repaying a mortgage often raises the question: can you suspend your mortgage to facilitate the sale or the next purchase? This decision has significant financial and practical consequences that must be clearly understood before undertaking any process. In this article, we clearly explain what loan suspension (installment deferral) is, when it is possible, and what its advantages and limits are for a real estate project.
Understanding mortgage suspension for a sale in French real estate
Mortgage suspension, also called installment deferral, consists of asking the bank to temporarily interrupt or reduce the repayment of the monthly installments of an ongoing mortgage. This measure can take several forms depending on the contract and the lender’s agreement: partial deferral, total deferral, or adjustment. It is often intended to ease the borrower’s cash flow while waiting for the property sale or in the event of temporary financial difficulty.
Contractually, the possibility of suspending the mortgage depends primarily on the conditions provided in the loan offer or in an addendum accepted by the bank. Not all banks offer the same flexibility, and approval is generally subject to an analysis of your financial situation. Before making any request, it is therefore essential to consult your loan agreement to identify a possible installment deferral clause.
What is suspension or installment deferral?
Technically, an installment deferral can be of two types: partial or total. In a partial deferral, you no longer repay the principal during the agreed period but continue to pay loan interest and borrower’s insurance premiums; in practice, your monthly payments are reduced but the overall cost increases. In a total deferral, both principal and interest repayments are suspended during the period, but borrower’s insurance remains due, and the operation generally generates an addendum and a new amortization schedule.
The amortization schedule is recalculated to include capitalized interest during the suspension, which can lead to an increase in the outstanding principal and an extension of the loan term. In other words, the repayment pause does not eliminate the debt: it postpones it, often at the cost of a significant extra expense when the suspension period is long. It is imperative to request a detailed simulation from the bank before agreeing to any suspension.
Which mortgages are eligible for suspension?
Standard amortizing loans (fixed or variable rate) are the most often concerned by loan suspension: the bank may propose a deferral if the contract allows it or after negotiation. However, some products present exclusions: assisted loans (such as PTZ), some interest-only loans depending on their structure, and other specific loans may not always be eligible. Therefore, checking eligibility case by case in the general and special conditions of your offer is essential.
Some flexible loans already include options for pausing or adjusting installments (often after a waiting period). A bridge loan is not a suspension strictly speaking but an alternative solution — it allows you to finance a new purchase while waiting for the property sale and often avoids having two loans at once. If your contract does not provide for anything, it is sometimes possible to negotiate an addendum or consider refinancing that would include a deferral clause in the new arrangement.
Why consider suspending your mortgage during a sale?
Requesting to suspend a mortgage before selling meets concrete needs: temporarily reducing monthly expenses, preserving cash flow until a sale is concluded, or avoiding two simultaneous monthly payments (old loan + new loan). For a homeowner who buys before selling or who needs to move into a rental, suspension can provide useful financial flexibility to secure the next real estate project. However, this solution often comes at a cost and should be compared with other options (bridge loan, adjustment, refinancing).
The request for suspension is often motivated by events that temporarily affect repayment capacity: job loss, reduced income, divorce, professional transfer, or other life events. In these cases, the pause aims to avoid over-indebtedness and to allow repayment to resume smoothly once the sale is completed. It is essential to be transparent with the bank and to provide precise supporting documents in order to implement an appropriate solution.
Financial and personal situations justifying suspension
Several common situations may justify requesting an installment deferral from your bank:
Job loss: permanent or temporary reduction in income.
Professional transfer: expenses and delays linked to relocation.
Divorce or separation: financial reorganization of the household.
Purchase project before resale: need to avoid two simultaneous monthly payments.
In each of these cases, the bank will assess the likelihood of the sale and your future capacity to resume repayments. If your file remains solid (income, down payment, sales prospects), the institution is more likely to accept a temporary suspension. If the situation seems permanently compromised, other procedures (mediation, over-indebtedness) may be considered.
Advantages of suspending a loan before a sale
Suspension primarily offers immediate relief from monthly payments, which can help finance renovation work for the sale, pay temporary rent, or secure a down payment for a new property. It sometimes avoids the overlap of two loans for several months and reduces the stress associated with managing finances during a housing transition. For a seller in a hurry or facing an exceptional situation, installment deferral can thus facilitate the success of the real estate project.
However, this temporary advantage must be weighed against the overall cost: increased interest, continued insurance premiums, and possible addendum fees. Before opting for suspension, always request a written simulation from the bank and compare with other solutions such as a bridge loan or installment adjustment. Guidance from a broker or real estate advisor can help you choose the solution best suited to your situation.
How to request mortgage suspension?
Before taking any steps, check your loan agreement to see whether an installment deferral clause is provided or whether an addendum is required.
Then contact your advisor to explain your property sale project and ask about the possible solutions: suspension, adjustment, or another arrangement.
The bank will examine your situation (income, debt ratio, sales prospects) and may request supporting documents before issuing a response.
If the suspension is accepted, wait for the signing of an addendum that will specify the deferral period, the type (partial or total), and the consequences on the amortization schedule.
It is recommended to send a written request to keep a formal record of the exchanges and the conditions proposed by the lender.
To secure the procedure, prefer a registered letter with acknowledgment of receipt or a tracked email and keep all the documents exchanged.
Essential elements to include in the request
Your letter or file should begin with the subject: request for installment deferral for the sale of the property, with the desired duration.
Clearly indicate your identity, the contract number, the amount of the current monthly installments, and the outstanding principal.
Attach the financial supporting documents that explain the request: proof of listing, sales agreement, reduced income, transfer letter, or termination notice.
Specify whether you are requesting a partial deferral (payment of interest and insurance) or a total deferral (full suspension except insurance).
Explicitly request a numerical simulation (new amortization schedule) and the breakdown of any possible fees (addendum fees, insurance, penalties) before signing anything.
Subject: request for suspension/deferral of installments.
Desired duration: specify 3, 6, or 12 months depending on the situation.
Documents: contract, sales agreement, income documents.
What to do if the bank refuses?
A refusal may occur if the bank considers the risk too high or if the contract does not allow deferral; don’t panic, there are alternatives.
First step: request a written explanation of the reasons for refusal and ask whether an alternative solution (adjustment, temporary reduction of installments) is possible.
You can contact the banking mediator if direct negotiation fails; this is a free and often effective way to find a compromise.
If your difficulties are financial and lasting, consider refinancing with another institution to renegotiate the conditions or include a deferral in a new arrangement.
Finally, as a last resort and if the situation is critical, filing an over-indebtedness case or taking legal action (request for debt relief before a judge) can be considered, with the help of a counselor or lawyer.
In all cases, contact a credit broker or financial advisor to quickly study the solutions suited to your real estate project.
What are the consequences of mortgage suspension?
Suspending a loan does not erase the debt: it changes the repayment path via a new amortization schedule and can increase the total cost of the loan.
Before accepting, demand a written simulation showing the extension of the term and the extra cost linked to the capitalization of interest during the deferral period.
Also assess the impact on your future borrowing capacity: the increase in outstanding principal can reduce your margin for a new loan or make it harder to obtain a bridge loan.
Finally, keep in mind that borrower’s insurance generally remains due during the suspension and weighs on the budget despite the pause in monthly payments.
Extension of the term and increase in total cost
Installment deferral often leads to an extension of the loan term, sometimes longer than the number of suspended months due to capitalized interest.
Concretely, unpaid interest is added to the principal and itself generates interest: this capitalization increases the final bill.
Demand numerical examples tailored to your file: even a 6-month deferral can translate into several additional months of repayment and a notable overall cost.
Always compare this extra cost with that of a bridge loan or refinancing to choose the least expensive solution for your real estate project.
Impact on borrower’s insurance and loan terms
Borrower’s insurance must, as a rule, be maintained throughout the effective term of the loan; it therefore remains payable during the suspension.
Depending on the contracts, certain coverages (death, total and irreversible loss of autonomy) remain mandatory, and the insurer may require continued premium payments to maintain coverage.
Setting up an addendum can also generate administrative fees or penalties; ask for their exact amount and their impact on the total cost.
Before validating, finally check the impact on the loan conditions (variable rate, special clauses) and make sure that resuming repayments will indeed be manageable at the end of the deferral.
Are there alternatives to suspending the mortgage for a sale?
Before deciding to suspend a mortgage, it is useful to examine other solutions often better suited to a sale or simultaneous purchase project. These alternatives can limit the extra cost linked to the capitalization of interest and preserve your borrowing capacity for the rest of the project.
Each option has advantages and limits: the choice will depend on your financial situation, the sales timeline, and your risk tolerance. To make the right decision, always request a numerical simulation and seek advice from a professional.
The bridge loan to finance a new property before the sale
The bridge loan is the most common solution when you want to buy before you have sold. It allows you to obtain an advance (generally 50 to 80% of the appraised value of the property for sale) to finance the purchase of the new home without having to immediately settle the current loan.
This product is designed for a short period, often 12 to 24 months, and avoids the long-term overlap of two monthly payments. However, the bridge loan can be costly and banks require strong guarantees: reliable property valuation, stable financial situation, and a coherent project.
Practical advantages: no long-term double repayment, flexibility to find a buyer and finalize the purchase calmly.
Disadvantages: high financial cost if the sale takes time and strict granting criteria.
Adjustment and refinancing as flexibility solutions
Adjustment of installments consists of negotiating with your bank a temporary or permanent reduction in the amount of payments, without fully suspending the loan. This option, if provided for in the contract or accepted by the institution, limits the cash-flow impact while avoiding interest accumulation as strong as with a total deferral.
Refinancing (or consolidation) allows you to refinance your current loan with another institution. In the new arrangement, it is sometimes possible to include a grace period or more flexible terms, which can advantageously replace a direct suspension.
Key points to weigh: adjustment = less extra cost but depends on contractual clauses; refinancing = possible savings and restructuring but depends on the rate obtained and fees.
Why call on a local OptimHome advisor for your real estate project?
Faced with the complexity of choosing between suspending a mortgage, using a bridge loan, adjusting your installments, or opting for refinancing, a local OptimHome real estate advisor provides concrete and personalized help. They know the local market, buyers’ expectations, and the banks’ lending conditions in your area.
An OptimHome advisor can assist you on several decisive aspects: preparing the sale, realistic valuation, coherent financing plan, and connecting you with financial partners. Their field knowledge facilitates negotiation with banks and anticipation of risks linked to having multiple loans or to a loan suspension.
Using a local expert means obtaining an objective diagnosis and tailored simulations: a numerical comparison between suspension, bridge loan, adjustment, or refinancing, and a roadmap to secure your real estate project. For tailored support, contact a nearby OptimHome advisor: they are trained to turn your financial constraints into operational solutions.
Conclusion — 5 key takeaways
Suspending a mortgage (installment deferral) is possible, but depends on the contract and the bank’s agreement.
Partial or total deferral temporarily eases monthly payments but generally increases the total cost of the loan.
Alternatives exist: bridge loan, installment adjustment, refinancing, or portability — each has its advantages and costs.
Always request a written simulation (new amortization schedule, fees, insurance) before accepting an addendum or a banking solution.
Get support: a local real estate advisor (such as those in the OptimHome network) or a credit broker will help you choose the option best suited to your sale and next purchase.
FAQ — Frequently Asked Questions
Can you always suspend a mortgage when selling?
No. The possibility of suspending the mortgage depends first on the contract and then on the bank’s approval. Without a deferral clause, you will need to negotiate an addendum or consider another solution.
Which types of mortgages are not eligible for suspension?
Assisted loans (such as PTZ), some interest-only loans, and other specific products may include restrictions and not allow a deferral. Check the general terms of your loan offer before taking any steps.
What are the financial consequences of a suspension?
A suspension often results in an extended loan term and a higher total loan cost due to capitalized interest and continued insurance premiums. Request a simulation to measure the exact impact.
Are there alternatives to loan suspension?
Yes: bridge loan, installment adjustment, refinancing, or portability may be better options depending on your real estate project and financial profile. Each requires personalized analysis.
How do you request mortgage suspension?
Send a written request to your bank (registered letter or tracked email) with supporting documents (contract, sales agreement, proof of listing, income documents). Negotiate the duration and type of deferral, and demand a simulation and an addendum before signing anything.
Can you keep your mortgage after selling a property?
In principle, no: the sale proceeds are used to repay the loan. But some contracts provide for portability, allowing you to transfer the loan to a new property.
Can you suspend a mortgage to sell your property?
Yes, if the contract includes a deferral clause or if the bank accepts an addendum. The suspension is temporary and often entails extra cost.
Is it mandatory to repay a mortgage when selling?
Yes. At the time of sale, the notary uses the sale price to pay off the outstanding loan to the bank, unless portability is accepted.
Can you stop a mortgage in progress?
You cannot “stop” a loan without repayment. You can pay it off early (sometimes with penalties), refinance it, or request a temporary suspension depending on the contractual terms.
How do you repay a mortgage early?
Early repayment of a mortgage may be partial or total. It requires the bank’s agreement and may entail early repayment penalties (ERP) provided for in the contract.
What is mortgage transfer?
Mortgage transfer allows you to keep your loan when making a new purchase. This portability must be provided for in the contract and accepted by the bank.
What is mortgage suspension?
Loan suspension, or installment deferral, consists of temporarily interrupting monthly repayments. It can be partial (only interest and insurance remain due) or total.
What is a mortgage grace period?
The grace period is an exceptional measure granted by a judge. It allows the suspension of mortgage repayments for up to 2 years in the event of serious financial hardship.
What is a mortgage deferral?
A loan deferral is a temporary arrangement that allows certain installments to be postponed. It generally results in an extension of the term and an extra cost linked to capitalized interest.
Unpaid mortgage: what are the consequences?
A missed mortgage payment quickly triggers bank reminders, then registration in the national payment incident file (FICP). If not regularized, the bank can demand immediate repayment of the outstanding principal and initiate foreclosure.
Can you sell your house and keep your loan?
As a general rule, the sale is used to repay the loan. However, if the contract provides for portability or mortgage transfer, it is possible to keep the financing for a new purchase.
Author of the Publication
Fabrice DOBROWOLSKI, Network Development Director at Optimhome
“Benefit from my expert advice, based on many years of experience in the real estate sector, to ensure the success of your buying or selling project.”
