How Mortgage Porting works
You may be able to transfer the interest rate as well as all the existing terms and conditions of your currentmortgage to your new home purchase.Mortgage portability allows you to move (port) your mortgage from one property to another, without penalty.
How Porting can save you money
Moving or porting your existing mortgage can often save you money on interest and other charges.
Porting your mortgage lets you transfer your existing interest rate and terms to your new home42. If you have a great rate, chances are you don’t want to lose it!
Even if you require a larger mortgage amount for your new home, and want to keep your favourable rate you can blend the existing fixed rate mortgage with new funds at the current rate to get a better overall rate. For variable rate mortgages, the existing pricing will apply to any new funds for the remainder of the term.
You’ll avoid prepayment charges that are applied when breaking a closed mortgage early. Depending on how much time is left on your term, these savings can be significant.
Keep in mind that even though a mortgage portability option can help you to save on costs, a processing fee, which includes fees associated with determining the value of the property, is still required. In addition, your lawyer will charge legal fees to register the mortgage on your new home.