Mortgage question

[Anonymous]

I owned two houses. One was my residential property. One was an old residential property that became an investment / rental property when I moved into the new house. I sold the house I was living in as I was outside the country for a couple years but kept the rental property. The equity from that house sale is not invested and is just sitting in the bank (about 400k).

There is 50k left on the mortgage for the rental property. Mortgage interest rate is very low <2%. It comes up for 5 year renewal in 2025. Probably will have a much higher interest rate then.

I am returning and will need to buy another residence as the rental property is not in an area I want to live in.

Should I pay off the remaining mortgage in 2025 from the money from the sale of the last house? Keep it for the deposit? Double up on mortgage payments on the rental for the next year?

[Anonymous]

Considering you have a lot of cash and the amount is "only" 50k, I would just pay it off next year. Renewal rate will probably be 6-7%. Just clear that debt and get your credit fully clear to show you have no other debt for when you apply for your mortgage to buy your house.