Mortgage portability is a feature of Canada’s mortgage market that allows homeowners to move their existing mortgage from one property to another, without having to go through the arduous process of applying for a new loan. By taking advantage of mortgage portability, homeowners can save time and money, as they don’t have to worry about the costs and inconvenience associated with obtaining a new mortgage.
Mortgage portability is becoming increasingly popular in Canada, as it allows homeowners to move from one home to another without having to worry about reapplying for a mortgage. In addition, it can be useful for homeowners who are looking to upgrade their home without having to worry about how to pay for it. For example, a homeowner may want to move from a two-bedroom condo to a three-bedroom house, but may not be able to afford the new mortgage payments. With mortgage portability, the homeowner can take their existing loan and apply it to the new property, saving them time, money and hassle.
When considering mortgage portability, homeowners should be aware of the eligibility requirements and restrictions that may apply. Generally speaking, homeowners must have a minimum of five years of uninterrupted payments on their current mortgage, and the new property must be of a similar value to the current property. Additionally, the lender may require an appraisal on the new property, and may impose additional fees and restrictions.
Ultimately, mortgage portability can be a great option for homeowners who are looking to upgrade or change their current property without having to worry about the costs and hassle associated with obtaining a new mortgage. By taking advantage of this feature, homeowners can save time, money and the hassle of dealing with a new loan application.