BC Day Long Weekend

With the BC Day long weekend around the corner, I thought I'd touch on a topic that comes up often when homeowners are thinking about moving: mortgage portability.

Many people hear the term "portable mortgage" and assume it means, "Perfect! I'll just pack up, move, and my mortgage comes with me." Easy, right?

Not exactly.

The reality is that porting a mortgage is still an approval process. Even though your clients already have a mortgage, they'll need to re-qualify for the mortgage amount based on their current financial situation. The lender will also need to approve the new property they're purchasing. In other words, it's not an automatic "yes."

Here's another interesting point that often catches people by surprise:

If your client has their mortgage with a credit union, there may be geographic lending restrictions. Some credit unions don't lend outside their home province, and others may only lend within certain regions of BC. That can impact whether a mortgage can actually be ported to the new property.

And here's something else worth considering...

Porting isn't always the best financial option.

Depending on today's interest rates, it may actually make more sense to break the existing mortgage if current market rates are lower than the client's current rate, even after factoring in any penalties. In some cases, a lender may also offer a blend-and-extend option, which combines the client's existing rate with today's market rate and extends the mortgage into a new term.

Every situation is different, which is why it's so important to review all of the options before making a decision.

So, if you or your clients are thinking about moving and wondering whether porting their mortgage is the right choice, I'd be happy to walk through what it really means and help determine the best path forward.

Wishing you all a fantastic BC Day long weekend! I hope you get a chance to relax, recharge, and enjoy some well-deserved time with family and friends.