Porting your mortgage entails taking your existing mortgage – along with its current rate and terms – from one property and transferring it to another. You’re only allowed to port your mortgage if you’re purchasing a new property at the same time you’re selling your old one. Unlike mortgage refinancing, porting a mortgage doesn’t require you to break your mortgage and pay pre-payment penalties.
Don’t worry if the mortgage you’ll need for the new property will be larger – that’s very common when porting a mortgage. Your lender will offer you what’s called a blend and extend. This is essentially a weighted average of the existing mortgage and interest rate, and the new money required at a current mortgage rate.
If you’re considering porting or transferring your mortgage, it makes the most sense to do it when your mortgage rate is lower than what’s currently being offered by lenders. This is because your blended rate will end up being lower than if you were to start a new mortgage from scratch.
However, if the mortgage rate you can qualify for today is lower than what you currently have, it might not make sense to port. In order to access these lower rates, you’d need to consider refinancing your mortgage.
Get in touch today so that we can review and see if it’s a great option for you!