Blog
IS YOUR EXISTING MORTGAGE PORTABLE? Refinancing or Purchasing?
2010-05-12 | 19:08:58
Selling your current home and moving into a new one can be stressful enough, let alone worrying about your current mortgage and whether you’re able to carry it over to your new home.
Porting enables you to move to another property without having to lose your existing interest rate, mortgage balance and term. And, better yet, the ability to port also saves you money by avoiding early discharge penalties.
It’s important to note, however, that not all mortgages are portable. When it comes to fixed-rate mortgage products, you usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current interest rate.
With variable-rate mortgages, on the other hand, porting is usually not available. As such, upon breaking your existing mortgage, a three-month interest penalty will be charged. This charge – which can be a surprising $1,500-$4,000 penalty at closing – may or may not be reimbursed with your new mortgage.
Porting Conditions
While porting typically ensures no penalty will be charged when you sell your existing property and buy a new one, some conditions that may apply include:
- Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day. Other lenders offer a week to do this, some a month, and others up to three months.
- Some lenders don’t allow a changed term or force you into a longer term as part of agreeing to port you mortgage.
- Some lenders will, in fact, reimburse your entire penalty whether you are a fixed or variable borrower if you simply get a new mortgage with the same lender – replacing the one being discharged. Additionally, some lenders will even allow you to move into a brand new term of your choice and start fresh.
- There are instances where it’s better to pay a penalty at the time of selling and get into a new term at a brand new rate that could save back your penalty over the course of the new term.
While this may sound like a complicated subject, your mortgage professional will be able to explain all of your options and help you select the right mortgage based on your own specific needs.
Following Products/Services subject to change July 1, 2010 from 5% to 13% HST….
2010-05-06 | 19:45:14
Dry Cleaning Service, Internet Access Service, Electricity and Heating Home Service Calls by Electrician, Plumber, Carpenter to Maintain or Repair Furnace, leaky faucets, bathtub, toilet, electrical wiring, etc
Landscaping, Lawn Care and Private Snow Removal, Hotel Rooms, Taxis, Camping Sites, Domestic Air, Rail and Bus Travel Originating in Ontario, Magazines Purchased by Subscription
Home Renovations, Gasoline/Diesel, New Homes over $400,000, Real Estate Commissions, Massage Therapy Services, Vitamins
Green Fees for Golf, Gym and Athletic Membership Fees, Ballet, Karate, Trampoline, Hockey, Soccer Lessons, etc, Hockey Rink and Hall Rental Fees, Fitness Trainer, Hair Stylist/Barber
Esthetician Services, Funeral Services, Legal Fees
Cigarettes & Other Tobacco Purchases, Nicotine Replacement Products
2010 CMHC Mortgage Consumer Survey
2010-04-29 | 13:23:17
Mortgage brokers continue to have higher usage among first-time buyers (45%) and repeat buyers (33%) compared to the refinancing and renewal segments, which have been relatively stable since 2006 at about 23% and 13%, respectively.
New Mortgage Rules - Effective April 19th, 2010
2010-03-04 | 12:19:13
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NEW RULES TO COME INTO FORCE APRIL 19TH, 2010 Federal Finance Minister Jim Flaherty announced changes to mortgage insurance rules this morning, which are set to come into force on April 19th, 2010. This means the government will adjust the rules for government-backed insured mortgages as follows: 1) Require that all borrowers meet the standards for a five-year fixed-rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future. 2) Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90% from 95% of the value of their homes. This will help ensure home ownership is a more effective way to save. 3) Require a minimum down payment of 20% for government-backed mortgage insurance on non-owner-occupied properties. (rentals) There were no changes to down payment requirements or length of amortizations for owner-occupied residences. |
Mortgage Tips and Tactics-Just an e-mail or phone call away!
2010-01-27 | 16:51:41
I have been in the mortgage lending industry for 7 years and over those past years recognize many concerns and questions that consumers have when purchasing or refinancing their home.
After all, your house is most likely your largest asset and I want to be a part of making it grow or getting it free/clear as soon as possible for you. Everyone's scenario is different and there can sometimes be multiple answers depending on your end result you have with your home.
Please contact me directly and advise me of your topic of interest and I will gladly pass along further information and examples of how you can benefit from working with myself and Dominion Lending Centres to meet your mortgage and real estate goals!
I'm available via e-mail at lcuff@dominionlending.ca or 705 503 LEND (5363) or drop into my office located at 2 Victoria St Barrie, On L4N 6G5 at the Barrie waterfront on the corner of Lakeshore and Victoria St.
-Debt consolidation
-Paying off your mortgage in 15 yrs - 35 yrs (pros and cons)
-Purchasing a rental property/vacation home/home for your children.
-Market info (increase and decrease of mortgage interest rates)
-Planning for the unexpected and using your mortgage and property as a security net.
-Self-employed? No problem - 100% commission? No problem
-Not sure of your credit? Find out in 30 minutes!
-Tips and Tactics for boosting your credit score.
-First time home buyers/refresher to existing home buyers (CMHC, down payment, approval requirements, lawyer costs, house inspection, etc)
-Equipment and vehicle leasing.
-Avoiding/Minimizing mortgage penalties and fees!
-Condos (fees and comparisons to purchasing a freehold home)