Porting & Assuming a Mortgage - How NOT to pay mortgage penalties!

Dated: August 14 2023

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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?

Special thanks to Phil Jungwirth from DLC Mortgage Force for joining: @phil.jungwirth (Instagram)  7802356051

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 benefitial 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.

If you are looking to buy a property, contact Derek to go through a full plan to support your needed.

Click here to set up your own detailed search:

https://rem.ax/3JdOk9g

More about Derek:

Think RE/MAX Elite, think Derek Keet.

With over 20 years of personal experience in residential, commercial, and rural transactions, Derek is an accomplished international business leader who brings a wealth of expertise to the RE/MAX team.

Derek was exposed to the world of real estate from an early age. His family, including parents and grandparents, frequently bought and sold properties, with his father involved in home construction. Derek's personal journey in real estate is diverse and extensive. It began at 19 when he purchased a townhouse condo. Over the years, he has ventured into various types of properties, including hundreds of acres of grain land, a downtown commercial building, a mountain cottage, and a single-family home in the community of Larkspur in Southeast Edmonton.

In addition to his real estate endeavors, Derek actively manages seven homes for individuals with physical and mental disabilities through L'Arche Edmonton. He is also a dedicated member of the Knights of Columbus and has received six letters of commendation for his involvement with the local 201 Endeavour scouting group in Edmonton.

Real estate is not just a profession for Derek; it is his passion. His bloodline is deeply rooted in the art of getting deals, negotiating, and making sound property investments. He is well-versed in meeting the unique needs of clients, whether they are seeking family-friendly suburbs or aiming for the best return on investment. He takes great pride in showcasing Edmonton as one of Canada's most affordable and vibrant cities, boasting a myriad of opportunities, amenities, schools, services, events, abundant sunshine, and year-round festivals.

Derek goes above and beyond to alleviate any concerns, and ensure that your needs, wants, and wishes are not only met but exceeded, treating you as he would like to be treated.

Click here to set up your own detailed search: https://rem.ax/3JdOk9g

Or contact realtor@dkeet.ca or 5875983248

If you are ready to embark on a successful real estate journey, think Derek Keet, the Edmonton REALTOR® of choice.

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Derek Keet

Think RE/MAX Elite, think Derek Keet. With over 20 years of personal experience in residential, commercial, and rural transactions, Derek is an accomplished international business leader who brings ....

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