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Originally posted by m2611

Can someone share the difference between Porting of Mortgage & Bridging the Mortgage

I am getting some confusing information from Mortgage consultant & banks

Under which scenario, person is eligible for Port or Bridging the Mortgage ?
Are those two totally different way of getting Mortgage

Are those only offered by existing Mortgage company or bank ?


Thanks

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If I understood your questions correctly, you already have a mortgage and you are selling your exisiting home and buying a new property and wants to port your existing mortgage to the new property either to carry with the good interest rate or to avoid penalties of breaking the existing mortgage.

If this is the case, then based on the terms of your existing mortgage and upon qualifying for new mortgage with the same lender, you can port the remaining amount of the mortgage with the same term and amortization to the new house and it has to be with the same lender. If you have to increase the amount, then the lender may offer your a 'blend and extend' option where in they will mix the present term, remaining amount and interest rate and blend it with the new term, interest rate and mortgage amount to come up with a weighted rate which may or may not be beneficial to you.

If the house which you are selling has a closing date later than the closing date of the new house you want to purchase, then you would need 'bridge financing' as for the intervening period and depending on your lender, they may or may not offer the same.

You should be discussing this with your mortgage broker in details and try to get all the answers clearly as these may be a little complex and if you do not take a right decision, it may cost you dearly and you may end up paying extra CMHC insurace fee (if the mortgage is insured) lawyer fee and banks fee for bride financing costs.

If you do not get satisfactory answers, you can contact me and I will guide you accordingly.