All About Porting A Residential Mortgage in Abbotsford

Are you intending to move and do you have a mortgage on your property? You can move without having to pay off your current mortgage in full, even if your mortgage contract is not yet complete. Transferring your mortgage is one of your possibilities when it comes to relocating even when you have a residential mortgage in Abbotsford.

"Porting a mortgage" is the process of moving an existing mortgage to a new home. When you port, your mortgage usually remains in its current form, meaning that the same terms and rate are applicable. However, your rate may change based on the details of your transfer.

Mortgage porting is an alternative to getting a new mortgage from a different lender. More precisely, you must be buying a new house and selling your old one in order to transfer a mortgage.

This choice will allow you to keep your existing mortgage. Despite being a practical substitute, porting isn't always an option. Learn more about its benefits and drawbacks below:

Benefits of Mortgage Porting

• When you use porting to move, you can often keep the rate constant.

• The other choice is to break a mortgage, which comes with costs.

Drawbacks of Mortgage Porting

• Typically, mortgage porting is only available for fixed rate mortgages.

• You can be required to pay more than your initial rate.

• Your current lender may be impacted by the frequent changes in income that come with moving.

How Does the Porting Process Works?

Before you can port, you must obtain approval. The qualifying process will proceed more swiftly, but you will still need to follow the same steps as when your mortgage was approved. In particular, you need to apply with a new credit report and the necessary documentation. You can also be required to pay a fee or charges.

The procedure of porting consists of paying off your mortgage on the sale of the house you are leaving and then obtaining a new mortgage on the house you are moving into.

Should I Change Lenders or Port My Account?

This question has no one correct response. Moving your mortgage or selecting a different lender can be the wiser course of action, depending on your circumstances.

Porting is a great option if you are comfortable with your rate. Even if you are eligible for porting, it may be wiser to transfer lenders if you are nearing the end of your loan and think you may receive a lower rate. Before choosing, it is best to go over the advantages and disadvantages of each option with an Abbotsford mortgage broker.

Sandhu & Sran Mortgages is your trusted mortgage broker who can assist you with residential mortgages, mortgage refinancing, transfer or renewal, and mortgage porting. Give us a call right now to learn more.