Mortgage Portability And Rate Blending Options
The clients who bought last year maybe have a better interest rate than what’s here now in March of 2023. And say they want to move. We asked RBC Mortgage Specialist Tina Hinch…
Do they have options for keeping that better rate, moving to a new house, and bringing their mortgage with them?
Yeah, absolutely. So at RBC we do have the option of porting a mortgage to a new property. Because I think when COVID hit, and obviously the pandemic, people were just getting into the market, and now it might be that time to move. So they can actually pick up their mortgage, and move it to the new property.
If they need a mortgage that’s higher than what they currently have, then we do what’s called a rate blend, where we take their current mortgage balance at the current rate, and we blend it for what’s needed new on current rates. Okay. So a lot of times their rate will definitely be a lot lower if it was especially really the couple years ago.
So we want to make sure what’s in the best interest for the client and we’ll look at different options and really make sure the selection is the right one for them. Right,
Do they need to negotiate that when they sit down and get their first mortgage, or can the porting be done with any mortgage?
For us it’s with every mortgage that we do offer that.
I guess it would be making sure you check with your provider, check your document. Not all providers have that portability feature. So it’s important, especially for instance, if you’re a military or you have family, and the goal is to eventually maybe pick up and move to a different province, you want to make sure you have that flexibility. Because at the end of the day, you could be paying a lot of prepayment fees if it’s not available for you.
Ready to explore your options for keeping a better mortgage rate while moving? Contact us and let’s connect with a knowledgeable mortgage expert who can guide you through the process. Don’t miss out on potential savings and a seamless transition to your new home.
Watch the video here