Flexible Ontario Mortgage Features

Portability – Porting a Mortgage to Another Home

If a mortgage is portable, certain terms of the mortgage (usually at least the interest rate and the remaining term) may be transferred to the borrower’s new property if the borrower sells the original mortgaged property. The new property will have to meet the lender’s guidelines, and usually the lender will also require that the borrower reapply or requalify for the mortgage financing. The original mortgage will be discharged from title when the original property is sold, and a new mortgage will be registered on the borrower’s new property when it’s purchased.

Types of Mortgage Ports

• When the amount of the mortgage on the new property is the same as the balance of the mortgage outstanding on the original property, this is referred to as a straight port.
• When the amount of the mortgage on the new property is higher than the balance of the mortgage outstanding on the original property, this is referred to as a port and increase.
• When the amount of the mortgage on the new property is lower than the balance of the mortgage outstanding on the original property, this is referred to as a port and decrease.

If you would like some help understanding whether your current Ontario mortgage has the portability features necessary to avoid early termination or mortgage prepayment penalties, contact us today.

Debt Free Sooner – Pay Off Your Mortgage Faster

A mortgage is a big commitment. Most mortgages are paid over 25 years but we have some tips to help you pay yours off faster. Reducing the number of years you make mortgage payments can add up to big savings.

There are several ways to “pay down” your Ontario mortgage and get out of debt faster.

• You can increase your payment amount when you arrange your mortgage, or (if allowed by your mortgage agreement)at any time during the term. This allows you to pay down your principal faster.
• If allowed by your mortgage agreement, you can make payments more frequently which saves you money in interest charges over the long run as it allows you to pay down your principal faster.
• You use any pre-payment privilege allowed by your mortgage agreement to make a lump sum payment. A lump-sum payment is applied directly to your outstanding principal if there is no outstanding interest owing. This saves you money over the course of your mortgage.
• You can pay as much as possible at renewal. All Mortgages become open at renewal. This means you can pay as much as you want on your mortgage before you enter into an agreement to renew your mortgage after your current mortgage agreement expires.

Currently in a mortgage and need some free advice on how you can pay off your mortgage years sooner and become debt free? Contact us!