Porting a mortgage

[Goodstuff]

Anyone have experience with porting a mortgage?

Does the new property have to be equal to / more / less in value than the current mortgage?

I was told by my broker that I`d have to sell my current property and buy the new one on the exact same day in order to port the mortgage over. Is this true?

 

[RobMacdonald]

Not really, it doesn`t have to happen on the same day. What happens with most lenders is that you`ll sell your existing property and pay the full penalty. If you but another property within 6 months, you can reinstate your old mortgage and have the penalty reimbursed.

The property can be more/less or equal to the existing, you just may have to pay down the balance if it`s less. If you need additional mortgage money to complete, then most lenders will blend your existing mortgage with new rates.

It`s very important to make sure you review these terms when you get the original mortgage.