Porting & Assuming a Mortgage - How NOT to pay mortgage penalties!
Waiting for your current mortgage to end so that you can buy a new home?
Don't want to pay the bank's mortgage cancellation policy for cancelling early?
This video gives some options which will not only help you avoid such bank fees but also give you advantages if you currently have a mortgage and want to sell your home or buy a new home.
The first option you have is:
PORTING a mortgage
Porting is where you take your current mortgage (when you sell your home) and port/transfer that mortgage to your new home.
This is especially beneficial if you currently have a great interest rate.
See the video above on some of the related questions on porting, but the main question peopole ask about porting is what happens when you need more money to buy your new property than you have left on your mortgage.
Phil mentions that your bank (or mortgage broker) will be able to work with your situation a little better but normally this is possible and not an issue to get an amount above your current mortgage amount.
ASSUMING a mortgage
Assuming a mortgage is used when you are not looking to buy another property and don't need to port.
This would happen in the case you are selling a rental property or a property where you aren't planning on buying right after.
Having a new/another buyer who wants to buy your property assume your mortgage is a great way idea in this case.
The Buyer who is buying your property will be happy if that allows them to pay a lower interest rate. It also allows for more buyers to qualify as the numbers are better (and the bank is able to give out more) in the case the interest rate is lowered, which helps to qualify more buyers.
This means that offering to have a buyer assume their mortgage will be a benefit in the case the original mortgage's interest rate is lower.
If it is not, then it will not necessarily be a benefit to the buyer but depending on the market this may be a requirement that a seller can expect the buyer to accept.
Please visit the following page to get Phil's details (Be sure to tell him that you found him through Derek's video) https://dkeet.ca/guest-speakers.html
If you are looking to buy a property in Edmonton, Sherwood Park, or need advice on the current market contact Derek!
Derek is licensed for residential, commercial, and rural real estate, plus has many years of personal and business experience to be able to understand your needs.
If you are interested in buying or investing in Edmonton or the surrounding areas, click here to set up your own detailed search: https://dkeet.ca/map-search.html
Click here for more information on Derek Keet: https://dkeet.ca/about.html
