Can you Port your Mortgage from Toronto to Calgary?
Porting a mortgage is something that almost no lender openly talks about; and even fewer have on actual offer. However with today’s low interest rates, and more homeowners wanting to keep those low rates even if they’re relocating, more people are starting to inquire about porting a mortgage. But what is porting a mortgage? And can it be done from province to province?
The answer to that is a fairly complicated one. When a lender agrees to port your mortgage, they are simply agreeing to transfer it from one home to another. Typically, you will need to use the same lender should you port your mortgage. If you don’t want to stay with your lender, you’ll probably have to break your mortgage entirely and apply for a new one. If you’re staying with the same lender however, a simple port mortgage can be done.
Porting a mortgage isn’t exactly a simple process. And if the values of the two homes don’t match up, it can become an even more complicated process. However, if the lender has agreed to it, they can usually take care of the paperwork and a good mortgage broker can explain it all to you. And while porting one Toronto mortgage to another home in Toronto may be complicated enough, can you port a Toronto mortgage and turn it into a Calgary mortgage?
That again, depends. If you are staying with the same lender, especially if they have branches in both Ontario and Alberta, you should still be able to do a simple port mortgage. However, this is a much more difficult process. Most lenders won’t even port a straight Toronto mortgage to another Toronto mortgage, let alone porting a mortgage to a different province entirely. However, mortgage rules and laws are federally-based and so, they apply to the entire country. Because of that, there’s really no reason why porting a Toronto mortgage to a Calgary home would be impossible.
While talking about porting a mortgage may seem like an easy thing, there’s a reason why lenders don’t openly talk about it. They’re complicated and so, lenders don’t generally like to offer them. This is why speaking to a Toronto mortgage broker is your best option. Mortgage brokers not only have a vast network of lenders, but they also know which ones will be willing to port a mortgage for you, and can explain to you how it can be done.
If you know before you apply for your Toronto mortgage that there is a possibility that you may move before the mortgage loan has expired, it’s important to tell your mortgage broker and your lender. Ask them how possible it will be to port your mortgage if you need to, and if there will be any fees involved in doing so.
Porting a mortgage can be a great thing for homeowners, but it can also be quite complicated. Make sure you know all your options, and what your future situation may be, so that you can make sure you only have to find that perfect mortgage package once!
Bryan J is the author of this article. For more information about Porting a Mortgage or Canadian Mortgage Inc
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