Want to buy a new home, but don’t want to let go of your super-low mortgage rate?
Depending on your loan and situation, there may be something you can do to buy a new property and retain your mortgage rate — a practice known as “porting” a mortgage.
But what, exactly, is a mortgage port, and how do you know if you qualify? A recent article from realtor.com answered frequently asked questions about porting a mortgage, including:
What is mortgage porting?
When you port a mortgage, you transfer your existing mortgage to a new property, which means you get to keep the same interest rate on your loan. However, in order to port a mortgage, you will generally need to reapply and get approved for your current loan again.
What mortgages are eligible for porting?
Porting a mortgage can be a great way to buy a new home without sacrificing your competitive interest rate. But, unfortunately, not all mortgages are portable. For example, some lenders allow porting while others don’t. You are also unable to port a mortgage if you have a variable rate loan, or if you are buying a home that costs less than the balance of your existing mortgage.
What homeowners are eligible to port a mortgage?
In addition to your mortgage being eligible for porting, as a homeowner, you also need to qualify by meeting your lender’s eligibility criteria, and showing a reliable payment history on your mortgage.
If you are thinking it is time for a new home, but the current interest rates are an obstacle, let's connect and see if "porting" is an option for you.