A mortgage portability option allows a home owner to port or transfer their mortgage from one property to another with the same terms, rate and conditions, along with the same outstanding balance.
Benefit Of Porting A Mortgage
The benefit of porting a mortgage is that the home owner doesn’t break their current mortgage and avoids paying a penalty, if applicable for breaking their mortgage. With the mortgage portability option, the home owner would only pay a discharge fee for discharging their mortgage and a registration fee for registering the mortgage on a new property, along with any applicable legal fees. The mortgage portability option allows a home owner to benefit from keeping the same terms and rate of their mortgage instead of applying for a new mortgage, which could be at a higher interest rate.
Most lenders will require home owners to qualify for porting their mortgage, to ensure they are still eligible with credit and income, for the loan amount.