If you’re planning to move before your mortgage term ends, a portability feature could save you thousands in penalties and interest. Mortgage portability lets you transfer your existing mortgage to a new home, with the same rate and terms.
Why use it?
- You avoid prepayment penalties from breaking your mortgage early
- You keep your current interest rate (which is helpful if rates have gone up)
- You may be able to blend your current rate with a new one if your mortgage amount increases
How does it work? To port a mortgage, your new property must meet your lender’s guidelines. You’ll go through a simplified approval process, and the closing date of your new purchase must align closely with the sale of your existing home.
Limitations to consider:
- Not all mortgages are portable
- Some lenders don’t allow blended rates
- Your financial situation will be re-evaluated
If you’re thinking about moving, check if your mortgage has a portability clause. It could give you flexibility, save money, and avoid the hassle of starting over. A mortgage agent can review your mortgage terms and help you plan ahead.
The Mortgage Path With Damian 
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