Porting your mortgage might sound like financial jargon, but it’s a concept that could save you a lot of hassle and potentially even money when you’re moving homes! Picture this scenario: You’ve found your dream home here in Ontario, and you’re excited about the prospect of making it yours.
But wait, what about your existing mortgage? Do you have to ditch it and start all over again with a new lender and new terms? Not necessarily.
Time and time again, I have clients who come into the office saying that another mortgage broker has advised them that they couldn’t port their mortgage. But here’s the truth: in today’s market, porting your mortgage has never seen such benefits.
What exactly is porting your mortgage?
Porting your mortgage refers to the process of transferring your current mortgage deal from your existing property to a new one when you decide to move. This option is beneficial if you’re satisfied with your current mortgage terms, interest rate, and lender and wish to maintain continuity with your new property.
So, how do you go about porting your mortgage effectively?
Let’s break it down into manageable steps:
- Contact Your Lender: The journey begins with informing your current mortgage lender about your intention to move and your desire to port your mortgage. They’ll guide you through the process and let you know if your mortgage is indeed portable.
- Assess Eligibility: Your lender will then evaluate whether you meet the criteria for porting your mortgage. Factors such as your financial standing, the value of your new property, and any changes in your circumstances will be taken into account.
- Valuation of the New Property: Expect your lender to conduct a valuation of the new property to ensure it aligns with their lending standards.
- Porting Process: Upon approval, your lender will facilitate the transfer of your existing mortgage to the new property. This typically involves closing the current mortgage and establishing a new one for the new property.
- Additional Borrowing: If you require additional funds for your new property, your lender might allow you to borrow more alongside porting your mortgage, subject to their terms and affordability assessments.
- Legal Process: Engage in the necessary legal procedures for purchasing the new property, which may entail the involvement of a lawyer.
- Completion: Once all the formalities are sorted, your mortgage will be seamlessly transferred to the new property, and you’ll assume ownership.
But hold on, what about mortgage fees?
It’s crucial to factor in any associated costs with porting your mortgage, such as arrangement fees or valuation fees. At Mortgage Suite Inc., we view porting as a service, not merely a transaction, which is why we don’t impose brokerage fees on triple ports. We’re here to facilitate your transition to a new property with minimal financial burden.
While porting your mortgage presents numerous advantages, it’s essential to acknowledge that it’s not always a straightforward process. There could be fees involved, and if for any reason you’re unable to port your mortgage, you might face early repayment charges or penalties. That’s why it’s imperative to explore all your options and seek guidance from the experts at Mortgage Suite Inc. before making any decisions.
In conclusion, porting your mortgage offers a valuable opportunity for maintaining favorable terms and conditions when relocating. By adhering to the correct procedures and consulting with knowledgeable professionals, you can unlock the full potential of porting your mortgage and ensure a seamless transition to your new property.
