Question: What is a portable mortgage canada?

Portable Mortgage Definition. A portable mortgage is a mortgage that permits the mortgage borrower to transfer their mortgage balance to a new property and with the same lender without penalties. … Most mortgages in Canada have some type of portability feature.

How does a portable mortgage work?

Although the process is often simplistically described as taking your mortgage with you when you move, porting actually means repaying your existing mortgage on the sale of your current property, and resuming the mortgage on the same terms with your new property.

Is porting a mortgage worth it?

Porting a mortgage can be a good idea if you face significant early repayment charges for leaving your current deal early. You could be charged a fee by your lender for porting your mortgage, but it may still work out less than any penalties you might have to pay for exiting your current deal.

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Do you need to qualify when porting a mortgage?

You have to reapply for your mortgage and may not qualify. When you ask your lender to ‘port’ your mortgage, you in effect have to reapply for that deal. Unfortunately, there’s no guarantee that you’ll qualify even though you did the first time you took out the mortgage.

When you port a mortgage What happens?

Porting your mortgage means taking the same mortgage deal with you to a different property – keeping the same lender, interest rate, loan amount and rules.

Can I port my mortgage to help to buy?

Can you port a mortgage with Help to Buy? … As you’ll need to pay off your Help to Buy equity loan when you sell your home – equivalent to 20% of the value of your home when you purchased it – this will add a large cost to porting your mortgage. This is in addition to any other fees you might need to pay.

How long does porting a mortgage take?

Porting a mortgage usually takes at least a month from applying. Once approved, the mortgage offer is valid for around 90 days with most lenders – enough time for you to complete on your new house.

How easy is porting a mortgage?

In theory, porting a mortgage sounds easy, but in reality, it can be tricky (especially if you’re moving to a more expensive property) and can end up costing you more than remortgaging to a new deal.

Can you transfer a mortgage from one house to another?

You can transfer a mortgage to another person if the terms of your mortgage say that it is “assumable.” If you have an assumable mortgage, the new borrower can pay a flat fee to take over the existing mortgage and become responsible for payment. But they’ll still typically need to qualify for the loan with your lender.

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Can I move my mortgage and borrow more?

Remortgage. Remortgaging is when you switch your mortgage debt to a new mortgage deal – either with your existing lender or a new lender. When you remortgage you can also borrow more money at the same time by increasing your mortgage loan.

What are the advantages of porting a mortgage?

  1. You don’t pay the ‘early repayment charge’ associated with your mortgage deal.
  2. Your existing lender may be more likely to consider your new mortgage as you have a track record with them.

How does porting a mortgage work in Canada?

Porting your mortgage means 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.

How do I know if my mortgage is portable?

Check your original mortgage offer’s terms and conditions to see if your mortgage has the ‘porting’ feature. Decide how much you actually need to borrow for your new home — if it’s the same value or less than your existing mortgage value, then you should be able to port it.

Can I port my mortgage to a cheaper property?

What about porting a mortgage to a cheaper house? If you are downsizing or taking a step down the property ladder, you may be in a position to pay back some of what you owe to the mortgage lender – and most mortgage deals will allow you to repay up to 10% a year of the outstanding balance each year without a charge.

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What happens to your mortgage when you sell your house and buy another?

‘Porting’ is when you transfer your current mortgage to a new property. … When your sale completes, the mortgage loan on that property is repaid and the lender gives you a new loan for your purchase. This loan may be on one rate for the original amount and another for any additional money you borrow.

Can I have two mortgages on the same property?

A second mortgage allows you to use any equity you have in your property as security against another loan. It means you’ll have two mortgages on your property. Equity is the percentage of your property owned outright by you, which is the value of the home minus any mortgage(s) owed on it.

Why can’t I port my mortgage?

Why can’t I port my mortgage? … Issues such as stricter lender criteria or changes in your personal circumstances may affect your ability to port your mortgage, as could a missed mortgage payment in the past or wanting to mortgage for a value different to the amount you’ve already taken out.

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