Figuring out if a portable mortgage is worth it can save you a lot of money and trouble years from now. Here we’re going to go over how to find out if your mortgage is really portable and if you even need a portable mortgage. Just because it’s offered doesn’t mean you have to have it, but it may be the right option for you. Let’s get started!
What is a Portable Mortgage?
A portable mortgage means that you can move your mortgage, terms and interest rate withstanding, to another property when it comes time to move. So say you’ve bought a beautiful house in Toronto but you’re going to need to move to Oakville or even Ottawa; what’s a home buyer to do? Before you would have had to find a new mortgage broker, a new lender, sell your house, pay a lot of closing costs, find a new house and then get all new financing on that. It’s a big mess having to move!
But with a portable mortgage, you can side step all of these problems. The thing is that you need to know when you’re going to move. Are you going to move every five years? Are you going to leave your house before the mortgage term is up? These types of mortgages allow you to port your mortgage (great interest and all!) to a new home, but the interest is higher.
Is a Portable Mortgage Right for You?
If you’re going to move before your mortgage is up (Canadians move about a dozen times in their lifetimes, so it’s something to think about) a portable mortgage is something you should consider. As Toronto mortgage brokers we’ll be able to work with you to make sure you’re getting the best portable mortgage for you. Here are a few things that portable mortgages can help you with:
- Avoid Expensive Closing Costs: A lot of closing costs are origination fees and other busywork fees that banks charge as part of the cost of doing business. When you port your mortgage to your new home you’ll have to pay a transfer fee that will range $300 – $500 on average, instead of thousands of dollars.
- Know You Can Move: Knowing you can move if you need to and still be able to keep favourable mortgage conditions intact is important! With a portable mortgage and the right Toronto mortgage broker you’re going to be able to move and cut down on the hassles.
- Keep Your Good Terms: If you want to be able to keep your good terms, you need a portable mortgage. They allow you to keep the same interest rate, loan amount and good terms that you enjoy now in your new home.
The best way to find out if a portable mortgage is right for you is to contact us! We’re friendly and local Toronto mortgage brokers who can help you get the right financing for your situation. If a portable mortgage isn’t want you need, we’ll find what is!
To find out how we can help you find a great mortgage, apply online here!