In a market place where variable rate mortgages are growing in popularity the issue of their portability is becoming more and more important. If you consider that people are moving more often than they have in previous generations, then the issue of portability should be near the top of your list of things to know when considering a variable rate mortgage.
Most clients focus on rate, but if they have to pay a penalty because they are moving, 2 years into a 5 year term, then all of a sudden that quarter point difference in rate is not as important as the penalty they could be stuck with. Obviously, it’s important to understand this before you enter into a mortgage, and not when you are planning your move.
So, is your mortgage really portable……
TD – Only fixed mortgages are portable, variable mortgages are not portable. Read here about the costly effect of all TD mortgages being Collateral charges!
CIBC – Fixed and variable mortgages are portable but variable rate mortgages are adjusted to current discount from prime available.
Scotia Bank – Fixed and variable mortgages are portable and variable rate mortgages maintain their current discount from prime.
BMO – Only fixed mortgages are portable, variable mortgages are not portable.
Royal Bank – Only fixed mortgages are portable, variable mortgages are not portable.
HSBC – Fixed and variable mortgages are portable.
We focus on providing our clients with mortgages that are not only completely portable with the existing terms (regardless of whether it is a fixed or variable rate), but also come with a “replacement” option. If you sell your existing home before your new home closes, the “replacement” option maintains the portability of your current mortgage for up to 90 days.
As always, please Contact Us if you have any mortgage related questions.