Are you selling your home and buying another?
Porting your mortgage, means to take your current mortgage contract (terms, rate and mortgage lender), that you presently have, and transfer or “port” it to a new property you are buying. You can only port your mortgage if you are selling your current home and buying another and if your current mortgage has a porting option.
When you port your mortgage, the mortgage is being placed on a new property. This essentially creates a new mortgage even if all the terms remain the same; you will need to re-qualify for the mortgage based on current lender policies, which may have changed since your previous approval.
There are different types of ports, such as:
- Straight Port– no changes to mortgage amount therefore the current interest rate will just move to the new house
- Port and increase– an increase in mortgage amount. Lenders will either extend your mortgage amount as a new mortgage or blend the new mortgage with the old one for a blended mortgage rate.
- Port and Decrease – a decrease in mortgage amount. A payout penalty may be charged on the difference between the old and new mortgage amount.
Every mortgage lender calculates their porting options differently. By running your payout penalty calculations and reviewing your porting options we can help you determine if porting your mortgage is right for your situation.
If you are thinking about selling your home, reviewing your re-qualifying criteria, your payout penalty and port options should be a first step before you list your home.