Are you planning to move to a new property but don’t want to break your existing mortgage contract and incur any penalties? If so, mortgage portability may be a good option for you. If you want to know more about mortgage porting and how to port your mortgage, read on.
What is mortgage porting?
To port a mortgage means to transfer your existing mortgage terms and conditions to a new property. This can be useful if you are planning to move to a new home but want to keep the same mortgage product, interest rate, and repayment terms that you currently have.
How is it different from remortgaging?
Remortgaging involves switching to a new mortgage with a different lender, while mortgage porting involves transferring your existing mortgage to a new property with the same lender.
How To Port Your Mortgage: An Overview On The Process
- Contact your current mortgage lender to inquire about mortgage portability. Ask if your mortgage is eligible to be transferred to a new property. It’s important to note that mortgage portability is not available with all mortgage lenders or for all types of mortgages, so you should check with your lender to see if it’s an option for you.
- Find a new property that you would like to purchase, and have it appraised to determine its value.
- Submit an application to your current mortgage lender to transfer your existing mortgage to the new property. Be prepared to provide information about the new property, your financial situation, and any other relevant details.
- After approval, work with your lender and real estate agent to finalize the details of the mortgage transfer and the purchase of the new property.
- Complete the transfer of your mortgage and the purchase of the new property according to the terms of your mortgage contract and the sales agreement for the new property.
When should you port your mortgage? Is mortgage porting for you?
You may want to consider mortgage portability if you are planning to move to a new property but don’t want to break your existing mortgage contract and incur any penalties.
Mortgage portability can be a useful option if you are happy with the terms of your current mortgage, such as the interest rate and repayment period, and want to keep those terms when moving to a new property.
Here are a few other reasons why you might want to consider mortgage portability:
- If you have a fixed-rate mortgage and are worried about interest rates increasing if you switch to a new lender.
- If you have built up equity in your current property and want to use that equity to buy a new property without having to reapply for a new mortgage.
- If you have a good relationship with your current mortgage lender and are happy with the customer service and support they provide.
Get advice from the mortgage experts at Premiere Mortgage Centre
If you are considering mortgage portability, it’s a good idea to speak to a mortgage broker who can provide professional advice and help you understand your options. Mortgage brokers from Premiere Mortgage Centre can help you determine whether mortgage portability is a viable option for you, based on your financial situation and the terms of your current mortgage. We can also help you compare different mortgage options and find the best solution for your needs. Start today by clicking here.