To port or not to port
If you’re considering porting, it makes the most sense to do it when your mortgage rate is lower than what’s being offered by lenders. But if the mortgage rate you can qualify for is lower than what you currently have, it might not make sense to port. Also, you should look at the penalty to break your mortgage before deciding whether or not to port.
There’s also the possibility you won’t be able to port your mortgage. Some lenders will allow you to do this while others will not. So if you’re planning to move during the term of your mortgage, this is a very important feature to have. A mortgage broker will be able to tell you which lenders are portable.
Also, not all mortgages are portable. For example, most variable-rate mortgages can’t be ported. And the amount of time you have to complete the port, which is usually between 30 and 120 days, varies among lenders. Some will allow just 30 days, which may be tight in some circumstances. But 120 days is usually enough time for someone to complete the sale of their old property and complete the purchase of their new home.
The bottom line
If you’re not planning on moving, the ability to port your mortgage is an important feature because you don’t know what the future holds. If you’re able to port your mortgage, you can save thousands of dollars and won’t be charged a prepayment penalty.