If you are considering porting, it is best when your mortgage rate is lower than what is being offered by lenders. However, if the mortgage rate you can qualify for is lower than what you currently have, it might not make sense to port. Also, you should look at the penalty to break your mortgage before deciding whether or not to port.
Furthermore, not all mortgages are portable. For example, most variable-rate mortgages cannot be ported. Moreover, the amount of time you have to complete the port, is usually between 30 and 120 days, and varies among lenders. Some will allow just 30 days, which may be tight in certain circumstances. On the other hand, 120 days is usually enough time for someone to complete the sale of their old property and complete the purchase of their new home.
The bottom line
If you are not planning on moving, the ability to port your mortgage is an important feature because you don’t know what the future holds. If you are able to port your mortgage, you can save thousands of dollars and would not be charged a prepayment penalty.
For more information on porting your mortgage contact Noble Mortgages @ 416-241-2227