What Is Porting Or Transferring Mortgage?
What is Porting or Transferring Mortgage?
Many home owners are unaware that they can port their current mortgage to their next home if they are selling and buying. I am re-blogging an article by Rosanna Younan, mortgage broker at Verico Premiere Mortgage Centre has put together a list of benefits of porting a mortgage.
Many lenders allow borrowers to PORT (move / transfer) their mortgage from one property to another. For example:
Three years left in your mortgage term
You decide you want to buy a new property & sell your existing home
Most lenders allow you to move your existing mortgage (terms, rate) to your new property
It’s important to check your lender’s policy regarding ports.
Benefits of porting a mortgage:
Avoid an early payout penalty
If your existing rate is a great rate – you get to keep this low rate
Many lenders will allow you to port & increase: this is important if you need to borrow more than your existing mortgage. Depending on the lender, they will blend your rate (keep existing rate on current balance & the increase financing at current rates).
To determine whether it’s best to port or incur an early payout penalty, some number crunching needs to be completed:
By calculating the cost of borrowing for the port option vs cost of borrowing on a new mortgage + penalty payout we’ll know which option is the best one!
Important to know:
You must apply and be approved for a mortgage port
Fees could include: appraisal fee, lender’s administrative fee & legal fee
Not all lenders allow ports or may only allow a port but not a port & increase.
Let me know how I can help you with your mortgage financing. I help my clients with financing for purchases, purchase plus improvements, investment properties, spousal buyouts, renewals and refinances.
Mortgage Agent License # M08004328
Verico Premiere Mortgage Centre Inc. #10317
Independently Owned & Operated
C: 416 729 9210