What is Mortgage Porting in Barrie, Orillia, Midland and across Ontario

January 18, 2023 | Posted by: Della Dwyer - Your Trusted Barrie and Surrounding areas Mortgage Broker

When you own a home in Barrie, Orillia, Midland, Wasaga Beach or anywhere in-between, and decide to purchase a new property, you may have the option to transfer or 'port' your existing mortgage to the new home. This process, known as mortgage porting, allows you to take your current mortgage rate and terms and apply them to the new property, without having to break your current mortgage and pay penalties.

It's important to note that you can only port your mortgage if you are purchasing a new property at the same time you are selling your old one. Additionally, if the mortgage you need for the new property will be larger, your lender may offer you a 'blend and extend' option, which is a combination of your existing mortgage and interest rate, and the new money required at a current mortgage rate.

When considering whether or not to port your mortgage, it's best to do it when your current mortgage rate is lower than what's currently being offered by lenders, as this will result in a lower blended rate. However, if the current mortgage rate is lower than what you currently have, it may not make sense to port and instead consider refinancing.

It's important to note that not all mortgages are portable, and some lenders may not allow it. A mortgage broker can assist in determining which lenders offer mortgage porting, and which mortgages are eligible for this option. Additionally, the amount of time you have to complete the port can vary among lenders, so it's important to check with your lender to see if it's a viable option for your situation.

If you have any questions on mortgage porting I would be glad to help anwer them for you.

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