Definition: The ability to move to another property and take your mortgage with you without having to lose your existing interest rate and terms
Options:
- The benefits are you can keep your existing mortgage balance, term and interest rate plus save money by avoiding early repayment penalties
- Not every mortgage offers this feature and can depend on the type of mortgage (variable, fixed etc.)
- You must re-qualify with your lender to be able to port your mortgage
- The lender also has to approve the new property to ensure it meets their guidelines
- As the mortgage will be for a new property, you still have to pay legal fees for the transfer of property and the registration of the new mortgage
- If you need a bigger mortgage, your lender may let you port and “top up”, and then blend on the extra amount needed. This gives you the mortgage amount you need at a rate that combines both your existing great rate and the new rate
- If you don’t port, upon the sale of your home, your mortgage will have to be paid back to the lender, and you may incur a penalty for breaking your mortgage
- If interest rates are lower when you move than your existing mortgage, paying the penalty and not porting may be a better option
- If in the future you decide to move, talk to me and I can analyze for you your options to either:
- Port and top up
- Pay the penalty and do a brand new mortgage
- Paying the penalty may be a viable option as long as we can get you back this penalty in interest savings as soon as possible on your new mortgage and home
