Mortgage Intelligence

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Porting a Mortgage is Harder Than You’d Think

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Image by courtesy of

If you are a homeowner and you have already been through the mortgage financing process a few times, the chances are that you may have heard your mortgage broker mention the term “porting your mortgage” at some point during obtaining financing. “Porting a mortgage” simply means transferring your mortgage from the existing property to a new property at the existing interest rate. This process generally takes place once you sell the home you currently reside in to purchase a new home.

Although it does sound pretty straight forward, it may not necessarily work for everyone and can be a challenging process. Reasons being:

1. The borrower will have a period of 90 days from the sale of the current home to buying the new home. This is a very short time frame to complete the port, as real estate at present is more favorable to sellers and closing will be on seller’s timing. In addition, you maybe up against multiple bids from potential buyers too.

2. Once you have set your sights on the home you want to buy, you will be required to re-qualify based on your income, credit history and information on the new property. In short, the lender needs to be satisfied with your circumstances prior to approving your loan.

3. A new job taking you to another city. Along with a new job comes a probation or a trial period to ensure this a good arrangement for both parties. As lenders require steady income and will not use your income during this period. Porting your mortgage in this instance will be a tough task unless, your partner has sufficient income to qualify.

Probationary requirements will not apply to you, if you are upgrading to a bigger home or moving to a different neighborhood or relocating and remaining in employment with the current employer or you have qualified as self-employed and will remain in the same line of work. Please keep in mind that you are required to re-qualify in other aspects of porting a mortgage and will need to complete process during the stipulated time frame.

An article published by Huffington Post gives readers insight on the challenges of porting a mortgage.

Are you looking to find out information on the benefit of porting your mortgage or other options available to you and if you will incur any prepayment penalties? Contact the team at today to speak to a mortgage expert or to get pre-approved, apply now through our secure website.



David Hetti is a full time Mortgage Broker with Mortgage Intelligence (FSCO Lic MO8002434) David is the Director of Operations at Mortgage Intelligence Oshawa and heads a team of full time licensed Mortgage Agents serving all of Ontario. David is also a licensed Insurance Consultant.

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