There are so many terms that you hear in the mortgage process and some of those are not ones that necessarily come up when you sign your mortgage commitment or even when you sign legal documents.
At Advance Mortgage however, we feel it is important for you to know what type of mortgage you are getting and what it allows for throughout the length of your mortgage term.
A port in simple terms means taking the mortgage from one security to another. This is very important because if you are taking a fixed term mortgage product you are signing a contract that says you are locked into this mortgage for the duration of the term you sign for. Most people do keep their homes for a 5 year term and that is also the length of term most people will choose as well. However circumstances could change in that time being a move, need a larger home or in some cases a smaller one. As there are payout penalties if you break your contract you need to have the ability to take that mortgage with you on to the property you are buying. You, of course need to sell the one you are in, buy the new one and at that time the lender, in most cases but not all, allows for you to “port” the mortgage to the new property thus not breaking the contract. You will keep all in place, save your interest rate and eliminate the penalty of paying out.
Just to know though, this is not always possible and does depend on what type of property you are buying, is it a sell and buy at the same time,etc. This is where we at Advance Mortgage comes in to guide you though the process and advise if this is the best route to take or give you other options. We also do discuss this with our clients at the beginning but do know there are so many things to remember at that time, you are so excited about the new home you just bought that it is best to call us at anytime to advise.
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