{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/5aa1e2c209689f487cfd5172/5fd317ca0d90ab1669029664?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"Can I move my current mortgage to the new house?","thumbnail_width":200,"thumbnail_height":200,"thumbnail_url":"https://open-images.acast.com/shows/5aa1e2c209689f487cfd5172/1607709549647-f8c8267f36c5ca928c054689344637f5.jpeg?height=200","description":"<p>One of the consequences of selling a home is the unexpected penalty that arises as a result of breaking your mortgage contract ahead of its maturity date.&nbsp;The penalty is determined by the greater of 3 months interest, or the dreaded interest rate differential (IRD).&nbsp;And the scary part is the your penalty can radically change from the day you list your property for sale to the day you sell it, especially in a whacky environment like we are currently in with the recent free fall in interest rates.&nbsp;&nbsp;</p><p>One way to avoid a break penalty is by porting your mortgage to your new home purchase.</p><p><br></p><p><strong>HERE's HOW A MORTGAGE PORT/TRANSFER WORKS:</strong></p><p><br></p><p><strong>There are three (3) Porting options:</strong></p><ul><li><strong>Straight Port&nbsp;</strong>(when you transfer precisely the same mortgage balance to the new property)</li><li><strong>Port and Increase</strong>&nbsp;(when you transfer the mortgage and increase&nbsp;the principle balance)&nbsp;</li><li><strong>Port and Decrease</strong>&nbsp;(when you transfer the mortgage and reduce the principle balance)</li><li>**depending on the lender, applicants have 30 to 180 days from the sale of their current home to close on their new home</li></ul><p><strong>Porting a mortgage is subject to the following:</strong></p><ul><li>porting fees: $75 to $400 depending on the lender</li><li>a break penalty is actually charged as the initial mortgage needs to (technically) discharge itself off the current land title</li><li>the break penalty (or part of it) is then reimbursed upon advance of the newly ported mortgage</li><li>some lenders will waive break penalties (fully or partially) if the closing dates of both properties are the same day</li></ul><p><strong>Penalty Reimbursements are as follows:</strong></p><ul><li>Straight Port - reimbursed in full</li><li>Port &amp; Increase - reimbursed in full</li><li>Port &amp; Decrease - partial reimbursement [(New Money/Old Money) * Penalty]</li></ul><p><strong>Impact On Rates:</strong></p><ul><li>Straight Port - interest rate remains the same</li><li>Port &amp; Increase</li><li>Fixed - weighted average blend&nbsp;</li><li>Variable - greater of prevailing market rates or your current rate</li><li>Port &amp;&nbsp;Decrease - interest rate remains the same</li></ul><p><strong>Impact to Amortization &amp; Term:</strong></p><ul><li>in all cases the remaining amortization on the new ported mortgage will remain the same as the remaining amortization on the existing mortgage</li><li>in all cases the term of the new ported mortgage must be equal to or longer than the remaining term on the existing mortgage</li></ul><p><br></p><p>That’s all I got. Check in next week for more.</p><p><br></p><p><strong>Marko Gelo Garage Band Sessions:&nbsp;</strong>(produced and performed my Marko)</p><ul><li>\"Cheap Money\" ...intro song (0:41) &lt;-Marko Gelo</li><li>\"chronicles\" ...outro song (1:53) &lt;- Marko Gelo</li><li>Sound Effects provided from Zapsplat.com and Apple Loops</li></ul><h4><br></h4><h4><strong>Contact Marko, he's a Mortgage Broker:</strong></h4><p><a href=\"tel:1-604-800-9593\" rel=\"noopener noreferrer\" target=\"_blank\">604-800-9593</a>&nbsp;direct Vancouver</p><p><a href=\"tel:1-403-606-3751\" rel=\"noopener noreferrer\" target=\"_blank\">403-606-3751</a>&nbsp;direct Calgary</p><p><a href=\"http://www.markogelo.com/\" rel=\"noopener noreferrer\" target=\"_blank\">markogelo.com</a></p><p><a href=\"https://www.facebook.com/marko.gelo.7\" rel=\"noopener noreferrer\" target=\"_blank\">Facebook</a></p><p><a href=\"https://twitter.com/markogelo?lang=en\" rel=\"noopener noreferrer\" target=\"_blank\">@markogelo</a>&nbsp;(Twitter)</p><p><a href=\"https://soundcloud.com/user-405448009\" rel=\"noopener noreferrer\" target=\"_blank\">MarkoMusic</a>&nbsp;(SoundCloud Account)...all podcast music tracks are performed and produced by Marko</p>","author_name":"Mortgagenomics Canada"}