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How Mortgage Portability Can Benefit You

When it comes to managing your mortgage, flexibility is the name of the game! One of the most beneficial features that Canadian homeowners can take advantage of is mortgage portability. 

But what exactly is mortgage portability, and how can it benefit you? Let's jump in and uncover the awesome perks of this option.

What Is Mortgage Portability? 

Mortgage portability is like having a magic carpet for your mortgage! It lets you transfer your existing mortgage to a new property without racking up penalties or changing the terms of your loan. In other words, if you decide to buy a new home before your current mortgage term ends, you can seamlessly move your mortgage from one home to another. 

Intrigued? Let's explore some of the amazing benefits!

⛔ Avoiding Prepayment Penalties

One of the most significant advantages of mortgage portability is the ability to avoid prepayment penalties. Normally, breaking a mortgage before the term ends means coughing up a hefty fee, especially if you’re in a fixed-rate mortgage. But with mortgage portability, you can sidestep those charges and keep more money in your pocket. Talk about a win-win!

🤝 Maintaining Favourable Mortgage Terms

If you secured a mortgage with favourable terms, such as a low interest rate, porting your mortgage allows you to keep these benefits intact. This is especially handy when interest rates are climbing, so you can stick with your great rate instead of getting stuck with a higher one.

📦 Simplifying the Transition Between Homes

Moving can be a stressful experience, and the financial aspect is often the most daunting. But fear not! Mortgage portability makes the whole process a breeze by letting you transfer your existing mortgage to your new place. This keeps everything smooth and stable, so you can focus on the excitement of your new home without worrying about additional financial expenses. 

🧬 Potential for Blended Mortgage Rates

If the mortgage amount for your new home is higher than your existing mortgage, your lender might offer a blended mortgage rate. This mix-and-match rate combines your existing low rate with the current market rate for the extra amount you need. It’s a balanced solution that often lands you a rate lower than today’s market rate but a bit higher than your original sweet deal. Not a bad compromise!

Things to Consider 

While mortgage portability offers numerous benefits, there are a few things to keep in mind:

  • Eligibility Check: Not all mortgages have the magic of portability. Make sure to check with your lender to see if yours does!

  • Time Crunch: Some lenders give you a window, usually between 30 to 120 days, to complete the transfer. Don’t waste a moment! 

  • Property Rules: Your new place has to meet the lender’s standards, which usually means getting an appraisal and passing a few other standard checks.

Discover Mortgage Portability with Arise Mortgage

Mortgage portability is a powerful tool for homeowners looking to move without sacrificing the favourable terms of their existing mortgage. By understanding and leveraging this feature, you can avoid costly penalties, maintain low interest rates, and enjoy greater flexibility in your home-buying journey.

If you're considering a move and want to explore how mortgage portability can benefit you, get in touch with our team to understand your options and make the most informed decision possible!

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