Mortgage options when buying your next home
When you sell one home and buy another, it is important to consider how you are going to handle your mortgage transition. There are two options that may be available to you, both with their own distinct advantages.
Porting your mortgage:
take your existing mortgage with you
Porting your mortgage is an excellent way to keep your existing low rate and avoid prepayment charges associated with breaking your mortgage early. Porting also eliminates the complexity of switching lenders and finding the same mortgage features and payment options.
Assuming your mortgage:
have the buyer take over your mortgage with the purchase of your home
If your current mortgage has a great interest rate, it can be an added incentive for buyers purchasing your home to assume the existing First National mortgage, subject to qualifying conditions. In times of rate uncertainty, having a buyer assume your mortgage can help a buyer save on monthly payments until the mortgage matures. Assuming a mortgage may also provide more flexibility in your real estate plans, reducing or even eliminating prepayment charges for breaking your mortgage early.
For more information on porting your mortgage or mortgage assumptions, contact a Mortgage Specialist at 1.888.670.2111