Factors to Consider Before Porting Your Home Purchase Mortgage

Do you have a home purchase mortgage on your property and planning to move? Even though your mortgage contract is not complete, you can still move without having to pay off your existing mortgage completely. In fact, you have a few options when it comes to moving despite having a home purchase mortgage in Abbotsford, and one of them is porting your mortgage.

The act of transferring an existing mortgage to a new residence is known as “porting a mortgage.” You typically carry over your mortgage in its existing form when you port, which means that the same rate and terms apply. However, depending on the specifics of your transfer, your rate can alter.

An alternative to opening a new mortgage with a different lender is mortgage porting. More specifically, in order to port a mortgage, you need to be purchasing a new home and selling your old one.

If you choose this option, you will move with your current mortgage. Although porting is a convenient alternative, it is not always available. Find out more about its pros and cons below:

Pros of Porting A Mortgage

  • You may frequently maintain the rate when you relocate by using porting.
  • The alternative option is breaking a mortgage, which is associated with fees.

Cons of Porting A Mortgage

  • Fixed rate mortgages are normally the only ones eligible for mortgage porting
  • It’s possible that you’ll have to pay more than your original rate.
  • Moving frequently results in a change in income, which could impact your present lender.

How the Porting Procedure Works?

You have to get permission before you can port. You’ll follow the same procedures as when your mortgage was granted in order to qualify, but it will go more quickly. You must specifically apply with the required paperwork and a fresh credit report. There may also be a cost or fees that you must pay.

Repaying your mortgage on the sale of the home you are leaving and then taking out a new mortgage on the home you are moving into constitute the process of porting.

Should I Port or Switch Lenders?

There is no one right answer to this question. Depending on your situation, moving your mortgage or choosing a different lender may be the better option.

If your rate is acceptable to you, porting is a better choice. In the meantime, if you believe you could get a better rate and are almost done paying off your loan, switching lenders might be a better option, even if you qualify for porting. It’s better advised to discuss the pros and cons of each option with a mortgage consultant in Abbotsford before making a choice.

Satbir Bhullar is a reliable mortgage broker who can help you with home purchase mortgages, mortgage refinancing, transfer or renewal, and mortgage porting to help you meet your home buying goals. For more details, give us a call today.