Portable Mortgage

A portable mortgage is a type of mortgage where the borrower can transfer the current mortgage to their new property without changing lenders and without any penalties. 

Example:

In simple words, a portable mortgage means you can take your current mortgage along with your current rate and term to your new home. So, for example, if you have a $500,000 mortgage and $300,000 remaining, you can carry your $300,000 with your new property.

If you purchase an $800,000 property, you get a $500,000 mortgage for 3% for five years. Now that you have completed two years of your mortgage and want to change your house and buy another $800,000 property, you can do that with portable mortgages. When you buy another $800,000 home, you can transfer your mortgage to your new property at the same rate. If rates have gone up in those two years, you can still keep your mortgage at 3% 

Advantages of Portable Mortgage

There are a few advantages to getting a portable mortgage. 

  • If you lock your mortgage in at a lower interest rate, then you can carry your lower interest rate with your new mortgage to the new property. 
  • You can save a few costs associated with a new mortgage process.

How to Get a Portable Mortgage

Not all mortgages are portable. Not all lenders will give a portable mortgage. If you want to buy another house in the next five years, ask your broker if you can have an option of portability in your mortgage.

Remember that most portable mortgages come with a fixed rate, so if you have a variable rate, you may need to convert it to a fixed rate when you get a portable mortgage. If you’re curious about porting your mortgage, don’t hesitate to contact us, and we can review it together.