Porting Your Mortgage
I have lots of clients who assume they can easily port their mortgage from their current home to the new one they are buying. Most mortgages are portable BUT (I know, there is always a but) you must re-qualify for your mortgage in order to port it. Renewing your mortgage is a simple process with limited paperwork while porting your mortgage means you are essentially starting from square one and have to re-qualify again as if it were a new mortgage. Lending criteria could have changed significantly since you originally obtained your mortgage. If you changed jobs and are earning less you may not re-qualify for your mortgage even though you have been making all your mortgage payments on time and have never missed a payment.
It is important to talk to your bank or mortgage broker and obtain ALL the details surrounding your financing prior to making a decision to ensure you are making an educated decision that will protect your interests.
And above all else get everything in writing! A verbal commitment will not hold up in court.
Lake Okanagan Realty Ltd.
Tel: (250) 870-2792
Fax: (778) 484-5252