Interest rates have remained at record lows for some time now.
You may currently be enjoying an attractive mortgage in your home. But what if you decide, or need, to move? What would happen to your ideal mortgage terms?
Did you know you might be able to take your mortgage with you!
Moving and taking your mortgage with you is known as “porting” your mortgage. This feature, available on certain mortgages, allows you to transfer your existing interest rate, plus all the terms and conditions of your current mortgage (loan balance, remaining term, etc.) to your new home.
One of the most valuable benefits of a portable mortgage is that it allows you to avoid paying redemption penalties for moving during your current mortgage term. Mortgage porting also protects you against any rise in interest rates occurring between the time you purchased your initial home and the time you buy your new dream home, within the original term.
“It’s more to avoid the penalty than anything else, less so the rates moving around,”Darren Robinson, a mortgage broker in Barrie, Ontario,
What Happens If You Need A Bigger Mortgage During Mortgage Porting?
What if you need a bigger loan? If you’re moving up and therefore adding to your mortgage loan, in most cases you will be able to blend your existing mortgage with the additional loan amount at the current rate to create your new mortgage, which will save you money over getting an entirely new mortgage with a higher interest rate.
Here is what RBC has to say about mortgage porting.
As always, if you need help buying or selling your home please don’t hesitate to contact us at any time.