Hello Again Roma, the down payment on the new property is really up to you and how much you can afford or are willing to `place down` on the purchase. There are however a few things to remember though. If you need less money for the new mortgage you can port-decrease your mortgage, which basically means your mortgage rate and term remain the same and move to the new property. The mortgage amount will be less and it should not cost you any penalty unless your mortgage decreases more than the allowable yearly pre-payment privilege specified in your original mortgage agreement (0-25% depending on the lender). A straight port will mean you are putting enough down payment so that you only need the bank to provide you with the exact amount remaining on your current mortgage. No change on your mortgage balance, your remaining term or your interest rates and no penalty required. If you are porting and increasing the mortgage you need then your term will remain the same, the mortgage amount will increase and the interest rate will be blended with the rates that are available today. I hope this helps Roma. I can do a rough blended calculation for you or any reader if you like, no obligation. Please give me call with any questions. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 www.centum.ca/abraham_niyazi/ I deal with 25 Lenders/Banks and can do mortgages across Canada except Quebec.

Porting is for you if you get better rates in doing so. Porting is carrying over the contract to the new property. If you sell the current house with the equity and apply a new mortgage, you will be able to save on payments especially if the rates are lower now. You can then have a substantial down payment on the smaller house, have a lower rate mortgage and hopefull have some cash left.

You must make sure when telling the agent at the bank that is doing your deal that you do not want to pay multiple CMHC fees. If they over look thsi it will costs you thousands. If done correctly, you will only pay CMHC fees on the difference between the new and current mortgage being PORTED.