A mortgage port is a great idea if your current mortgage interest rate is lower that the prevailing interest rate.
What is a Mortgage Port?
Occurs when a homeowner buys a new house and would like to use the new property as collateral for their existing mortgage.
In case of a new property purchase, porting the mortgage allows borrowers to transfer their previous mortgage balance to the new property. (With the exact terms and without penalties)
In the case of rising interest rates, porting your mortgage may be your best option. This is beneficial to a homeowner who’s selling their current home to buy another while the mortgage is active.
Benefits of a Mortgage Port
Available Mortgage Port programs
When the previous mortgage amount is enough to cover the new mortgage, therefore no need for additional modifications.
In this case all that needs to be done is transfer the mortgage balance to the new property.
If the mortgage you require for a new property is less than the current mortgage, the amount left can be ported to cover the new mortgage.
If the mortgage reduction exceeds your allowable prepayment amount, penalties will apply on the excess prepayment amount.
If the mortgage required on the new property is larger than your previous property, you can port the current mortgage amount. As well as receive the needed difference. The increased loan amount will be set according to the period remaining of the existing mortgage.
If you have a fixed mortgage, the rate will be blended with the current rates.
Our Sunlite Mortgage agents will walk you through the choices available and help you identify the most suitable mortgage product to your current situation. Contact a Sunlite Mortgage agent today at 1.877.38LOANS and we will be happy to help you with a mortgage.