When it comes to buying a home, many Canadians are familiar with the mortgage process, but one term they may not be as familiar with is mortgage portability. Mortgage portability is an important concept to understand when deciding whether to purchase a home, as it can save you money and stress in the long run.
Mortgage portability is the ability to transfer a mortgage from one property to another without having to reapply for the loan or change lenders. This process is beneficial for homeowners who are looking to move to a different property but want to keep the same mortgage terms, such as interest rate and repayment period.
The first step in the mortgage portability process is to determine if your current lender will allow you to transfer the mortgage to a new property. Each lender has different requirements for mortgage portability, so it’s important to ask about the specifics before making any decisions.
Once you’ve determined that your current lender will allow you to transfer the mortgage, you’ll need to apply for a new mortgage for the new property. This process is similar to applying for a mortgage in the first place, and you’ll need to provide documentation such as income and credit history.
Once you’ve been approved for the new mortgage, the lender will transfer the mortgage balance from the old property to the new one. This process usually takes a few weeks, and you won’t have to pay any additional fees.
Mortgage portability is a great option for homeowners who are looking to move to a new property without having to go through the process of applying for a new mortgage. It can be a time and money saver, and it can help you keep the same mortgage terms that you’ve become accustomed to. It’s always important to do your research and make sure you understand the process before making any decisions.