Are Portable Mortgages Worth It?

portable mortgagesFiguring 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!

Why Do Portable Mortgages Save You Money?

portable mortgagesIf you want to be able to save money but you need to move, a portable mortgage may be the right choice for you! Instead of getting trapped with one house, one mortgage you’ll be able to move whenever you need to. Make sure you work with one of our Toronto mortgage brokers to get the best deal. Remember that the interest rates for these mortgages will be slightly higher than a comparable fixed rate or variable rate mortgage offered by both conventional and Canadian private lenders, but you’ll get all the perks you need to make up for it.

Avoid Paying Closing Costs

I don’t know if you’ve ever had to sell a house before, but it can be expensive. Working with the lawyer to get your home sold and your interests protected, a seller’s agent, the closing fees for the title company and whatever crazy demands the buyer has dreamed up can take its toll on your wallet. If you want to be able to move on when it’s time to move on, choose us as your Toronto mortgage broker. When you choose a portable mortgage you’re going to be able to avoid all closing costs and pay a simple transfer fee.

When it’s time to move you’ll need to talk to your lender, then you’ll pay your fee and any balance left on your current home will be shifted to your new home. So if, for example, you owe $20,000 on your $500,000 mortgage, only $20,000 will be transferred to the new home and you’ll have $450,000+ to buy a new home. No catches, just the ability to get the money you need to get into your next home. You will need to work with a Toronto mortgage broker though, because finding the right lender is the hard part.

What Kind of Lenders Have these Mortgages?

All kinds of lenders have these kinds of mortgages so you’re going to want to do some comparison shopping. Your conventional mortgage lender has them, private mortgage lenders have them, and when you work with us as your Toronto mortgage broker you’ll have all the help you need to get the right lender for you. Don’t let bad credit or other issues get in the way of having the portability you need to move from home to home.

Is a Portable Mortgage Right for You?

This really depends on your circumstances. If you don’t see yourself moving in the next 5 to 10 years it may be the wrong decision for you. You’re going to need to make sure you talk with us before you make a decision; we’re experienced Toronto mortgage brokers that will help you get the mortgage you need to keep moving forward. You don’t have to waste time with a normal mortgage that doesn’t work for you when there’s a world of options just waiting for you out there. Contact us today and see what we can do for you. 

Also, visit our portable mortgage page today to learn more!

Can You Transfer Your Portable Mortgage When You Move?

portable mortgages in CanadaWhen you buy a new house you’ll be able to “port” a portable mortgage from the old one to the new one, that’s what makes it portable! But to move it you’re going to have to get a portable mortgage first; this means you’re going to need a good mortgage lender and decent credit to get the best one. This also means you’re going to want to work with the best Toronto mortgage broker, and that means us! We’ll work hard so you don’t have to. Here we’re going to talk about how portable mortgages work and how to move it to your new home when you’re ready. Let’s get started!

Just What is a Portable Mortgage?

Canadian portable mortgages allow you to keep great mortgage terms and move it from one place to another. There’s something known as “negative equity”, which means that the balance on your previous home moves to your new home. You shouldn’t let a few thousand dollars owed on your old house stop you from getting a new one, but before you think about a portable mortgage talk to a Toronto mortgage broker. This way you’ll know if a portable mortgage is right for you.

It’s important to remember to get a portable mortgage you will need good credit and a good lender who won’t gouge you! This means you’re going to want to work with a Toronto mortgage broker to get the best deal. The last thing you need is a bad portable mortgage that you’re stuck with for the next 25 years.

How do Portable Mortgages Work?

We’ll just assume you already have one on your current home. You decide to move but you still owe some money on your first house. You could take out a bridge mortgage and pay thousands and thousands of dollars to bridge your financing gap, or you could just port you good terms instead. You will have to pay a small transfer fee, but beyond that you’ll be able to keep the great low interest rates and good terms you enjoyed on your first property for your second property.

If you owe money on your first property, you’ll have “negative equity”. Whatever you owe on your first home will move to your second home, but that’s okay. It’ll give you more time to pay it off and you’ll be able to avoid any problems that would delay the purchase of your new home. Most portable mortgages work throughout Canada and you’ll be able to move if you need to.

Do You Need a Portable Mortgage?

It’s important to note that these kinds of mortgages do have slightly higher interest rates and credit demands, but they’re worth it if you intend to move in the first ten to fifteen years. The cost of moving and taking out an entirely new mortgage (not to mention selling your first house) can be expensive. Don’t let this prevent you from living your dream. Visit our portable mortgage page today to learn mroe!

What are the Advantages of Portable Mortgages?

portable mortgageEveryone’s trying to get you to get a portable mortgage, but are they right for you? As experienced Toronto mortgage brokers, we can’t tell you enough about the advantages, but they’re not right for everyone. If you move a lot (your company shifts you to different cities or provinces every five years for example) these will be a great fit, helping you keep your investment intact. Here we’re going to go over the advantages, disadvantages and show you how to select the right one for your individual needs. Let’s get started!

Benefits of a Portable Mortgage

There are two main benefits of a portable mortgage:

  • Avoid Closing Costs

The ability to avoid closing costs is the first advantage of a portable mortgage. You won’t have to pay as much as you would if you were starting out with a completely new mortgage. It’s important to make sure that you know what the “Good Faith Estimate” is so you know how much you’re going to have to pay when the new mortgage closes. Any money saved is good money, so weigh your options carefully!

  • Carry the Same Interest Rate to Your New Home

If you get a second mortgage now while interest rates are great (like if you used one of our mortgage brokers for example!), you’ll be able to carry that over to your next house. A portable mortgage is flexible and helps you avoid debt traps. If you can have good enough credit to qualify for a low interest rate mortgage now while your credit is good, but your credit takes a dip later… you’ll still be able to reap the benefits of a good credit score.

So if you move from one area to another before you pay off your house, you can “port” your interest rate and favourable terms over to your new home. If you move frequently, this can be a big benefit!

Disadvantages of a Portable Mortgage

The disadvantages of a portable mortgage boil down to whether or not you actually need one. If you’re not going to need to move from your house in the next five years, you aren’t going to be able to get any benefit out of it.

  • Higher Interest Rates

Higher interest rates are part and parcel for portable mortgages. If you don’t need this for your situation, it might be better to just skip it. You can get a normal mortgage without having to pay this extra penalty if you don’t need a mortgage that’s portable.

  • Good Credit

You’re going to need excellent credit to qualify for this type of financing. You’ll be able to get a good mortgage but you’re going to have to demonstrate that you can pay on time and that five years from now when you do move that you can keep up the payments.

We’ll be able to help you prove this and make sure that you get the lowest interest rate possible. When you want a good portable mortgage, you’re going to want a good Toronto mortgage broker.

Also, visit our portable mortgage page today to learn more!

Are Portable Mortgages More Expensive?

portable mortgageOne of the most common questions we get as Toronto mortgage brokers is “Are portable mortgages more expensive?” It really depends on if you’re going to use the features of a portable mortgage or not; if you’re going to move around at least once during the lifetime of your loan you’re going to be able to make the most of your mortgage! This is the kind of Canadian mortgage that works for people who move often for work, but not for people who see themselves staying in the same place for the next 15 years.

What is a Portable Mortgage?

First to know if they’re more expensive, we have to know what they are! A portable mortgage is just like any other mortgage offered by your lender, but it has one very important feature: portability. Debt portability is important for people who move a lot. You’ll be able to move the mortgage you have now with its great terms and the same balance; you’ll be able to pay the same monthly payment you pay now, and you’ll have to pay a small transfer fee to get your mortgage moved to the new property.

It works like this:

You buy a beautiful house with a low interest rate (yay!), and you live here for about 5 years. Your company decides to move you to Calgary; without a portable mortgage you’d be in for some trouble. You will have to find a realtor to help you sell, you’ll have to pay closing costs, find a real estate lawyer, and hope that whatever you net from the sale of the home after all these fees can cover a new home. If your situation has changed you may face a big jump in interest rates and the terms you get for your next mortgage may not be nearly as favourable as the one you enjoy now.

Is a Portable Mortgage Right for You?

You’ll want to speak with one of our Toronto mortgage brokers to make sure that this is the right choice for you. You’ll be able to get a great mortgage now that you can move to your next home when the time comes. You won’t have to pay massive closing costs and you won’t have to worry about things getting out of hand when you’re trying to get money together to buy a new home. Portable mortgages are a great choice for people who will need to move at least once in the next 10-15 years; if you don’t have a job or a situation where you’ll need to move, you may want to consider a normal mortgage instead.

A portable mortgage usually has a slightly higher interest rate. You’ll want to talk with one of our Toronto mortgage brokers to make sure that you’re making the right choice for your situation. We’ll help you find the best interest rate and terms to fit your finances and your lifestyle; check it out today and see how you can save!

To learn more about our great rates on portable mortgages, click here!