Hello Nydia. Your question is a common one but very often not explained by your bank. The reason for the port in the first place is that there is an agreement in place (between you and the lender) for a mortgage amount, term and interest rate that has not yet expired. That agreement must be honored by both sides or there may be penalties to be paid for breaking it. There are 3 different types of ports that can happen when you sell a home and buy another. Each one different. Your mortgage can be either a straight port, port-increase, or port-decrease. The simplest is the straight port where you are moving your mortgage from one property to another with the same amount of mortgage. The rate, remaining term, and amount stay the same, no penalties involved and the process is straightforward as there is no new money involved. The second option is a port increase where you need extra funds for the new home, (this is usually the case if you are buying a more expensive home and have less down payment) In this case the remaining mortgage term is moved to the new property, the mortgage amount is increased and finally the interest rate is blended with today`s available rates. You mentioned that your current mortgage rate is high that would mean that todays rates are lower, in this case your rate will be blended and reduced, if the rates are higher today your rate will be blended and increased. I can do a rough calculation for you if you like, see my contact info at the bottom of the reply. The final port is the port-decrease. In this case you need less mortgage than the remaining mortgage amount you currently have. Your mortgage term, and rate get moved to the new property only the mortgage amount is reduced. There may be a penalty involved in this reduction of mortgage. If you are reducing your mortgage amount by greater than the allowable yearly prepayment options that you have signed for on your mortgage documents you may be charged a penalty for the extra reduction. There is one more option that one can consider, if your bank is not going to offer you a good rate on your port (they already got you so they often dont) then you can always consider a new mortgage at another lender at full discount. It may save you more than your penalty to break, the calculations often tell the tale if it is worth it. I hope this information has helped you Nydia. I can go into more detail if you like, explain further, and do some rough calculations, no obligation if you like. Please don`t hesitate to contact me:Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

Thanks Abraham this is a very detailed explanation about mortgage porting and I wouldn`t add any other comments. You explained it very well, thank you.

Thank you I try to be complete as possible with my answers, I do encourage anybody who has questions to please call me, there are things that I didn`t touch on, small guidelines that I did not mention because my answer would be double the size and possibly confusing. The guidelines I mentioned do not always apply to every port, each lender is different and each client circumstance is different so please call me with any questions and I can answer to your unique situation. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec.

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I have $330k left on this mortgage and we are trying to get a house for $430. because the mortgage is portable, do i still need to have 5% down payment. and as a side note, if i do need a down payment, can it just be worked into the ported mortgage meaning not having to scrounge around for the 5%?

Yes

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In the mortgage brochure, there is a column illustrate about 'porting', the answer of that is 'yes'. so what is it referring to ?

In this context porting means transfering the loan amount (and possibly increasing it) and the same terms and conditions to a new property. You would still have to apply again, and pay all the normal valuation and search fees, but if you have a good deal you would be able to move and guarantee to keep it. This is especially useful if you have a long fixed term (or other deal that has penalty charges for early redemption) and suddenly find you have to move in a couple of years. If you could not port the mortgage you would have no choice but to pay off the old mortgage and pay the penalty. If you can port it you transfer the remaining fixed term etc to the new property.

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I purchased a home in port st. lucie, fl 2 years ago. it was a pre- construction opportunity that my brother got me into. we were supposed to sell it after a year to make some money. unfortunately, since the real estate market has fallen apart we couldn't sell it. we had to rent it out and after only 9 months the tenant who was not paying on time to begin with, decided that she couldn't afford to pay and broke the lease. the house is up for rent again in the mean time we have other bills to pay and are stuck with a mortgage that we basically can't afford. neither my brother or i can't move into the house due to the distance from our jobs. i really regret ever getting involved in that situation but i know that it's done and i have to deal with it. does anyone have any advice? what options do i have? i really don't want to lose my credit although i know it's almost inevitable at this time.

Hello - Find a tenant, even if you have to price it below the mortgage payment, at least something will be coming in. I would try to get both a security depositt and last months renupfrontnt. And a second job if needed in the short term to cover the rest. Good luck -

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Had enough for the deposit but can't afford condo mortgage/tax/insurance/maintanence fee by any normal means. price has risen last 1 1/2 year but afraid of bubble. location is right across from american airlines arena, port of miami, and near new performing arts center. question is mainly will foreign investors be strong enough to keep prices high and possibly increase rent enough to cover mortagage payment. other reason being builder would take 8% of sales price prior to completion and issuance of mortgage on my byhalf. interested in any incite or comments, many thanks.

call a local realtor. ask for their professional opinion. a good realtor will have the info you seek. go to www.weichert.com click on link for agents/offices. tell them dan roemer from weichert in frisco texas referred you.