Posted on 3-Feb-2016 12:49
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Mortgage portability is when you take a current mortgage on one home that you have sold and
apply the same rates to a new home you have purchased.
Pros:
1) The pros of mortgage portability is, if your current mortgage rates are better than mortgage rates
currently offered, you can keep your better rates.
2) Breaking a mortgage early can result in penalties. It is sometimes better to move your mortgage to
your new home.
3) It is also possible to extend the amount of your mortgage when you port it. Youll have a bigger
mortgage, but with the rates you started out with.
Mortgage portability is not for everyone. Some lenders do not allow mortgage portability or in some cases
porting your mortgage would not be financially beneficial.
Each lender also has its own clauses for mortgage portability. For example, the time allowed between the
sale of the old home and the purchase of the new home can vary from 30 to 120 days.
Talking to a mortgage broker is highly advised when considering porting your mortgage. Mortgages of
Canada, has the knowledge and experience to guide you down the correct path.
Call: 1-647-995-3918
Toll Free: 1-800-340-8339
Address 10 Milner Business Court Suite 300 Toronto, ON M1B 3C6
