Portable Mortgages

What is a Portable Mortgage?

A portable mortgage is a unique type of mortgage that can offer several benefits to homebuyers, particularly those who may need to move or sell their home in the future.

With a portable mortgage, you can transfer your existing mortgage from your current property to your new property, without having to pay a penalty for breaking your mortgage contract. This can be a significant advantage for those who are planning to move or upgrade their home in the near future.

Check out Melissa Bennett's video on Portable Mortgages

Flexibility

One of the main benefits of a portable mortgage is the flexibility it offers. By keeping your existing mortgage terms and interest rate when you move, you can avoid the need to renegotiate or reapply for a new mortgage. This can provide peace of mind and help you manage your finances more effectively, particularly if you are uncertain about your future housing needs.

Cost savings

Another significant advantage of a portable mortgage is the cost savings it can provide. By avoiding the penalty fees and charges associated with breaking your mortgage contract, you can potentially save thousands of dollars. This can make a significant difference in your overall financial situation, particularly if you are on a tight budget or have other expenses to manage.

Simplified process

The process of transferring your mortgage to a new property is usually simpler and quicker than applying for a new mortgage. Since you already have an existing mortgage, you can often complete the process with minimal paperwork and hassle. This can be a significant advantage for busy homebuyers who don't have the time or energy to navigate the complexities of a new mortgage application.

Potential to negotiate better terms

Finally, having a portable mortgage can provide you with negotiating power when you are in the market for a new property. By having an existing mortgage that you can transfer to a competitor, you can potentially negotiate better terms on your new mortgage. This can help you save money and get more favorable terms, which can be a significant advantage when you are trying to buy a new home.

Overall, a portable mortgage can be an excellent option for homebuyers who want flexibility, cost savings, and simplified processes when they move to a new home. If you are considering buying a new property in the near future, it's worth exploring the benefits of a portable mortgage and whether it could be the right choice for you.