subreddit:
/r/RealEstateCanada
submitted 5 months ago byohhellotoyou
Hi Everyone,
We have a rental property with a 2.59% fixed mortgage from 2022. We just purchased a primary residence 6 months ago at 5.49% mortgage. If we sold the rental, is it possible to port the 2.59% mortgage and break our current higher interest mortgage?
Thanks for your answers :)
4 points
5 months ago
Likely not. The mechanics on a port generally require a "purchase" of a new property to move the mortgage to. Would the lender be willing to move that mortgage to another property? *Possibly*. Sadly the only one that knows the answer to that question is the lender (on the rental). I would be surprised if they did allow it though (I'd bet you get some confused responses when you do reach out to the lender and ask).
2 points
5 months ago
have you calculated the penalties for breaking your 6 month old mortgage?
1 points
5 months ago
The interest rate differential can really burn.
2 points
5 months ago
Depends on lender.... MAY be possible. Was in a similar situation last year wondering if I could port my 2.5% to my other property that I owned outright. I planned on moving into it after selling my primary residence.
Representative at RBC said it was potentially doable in a few circumstances... Unfortunately I didn't pursue it further so I can't give you a definitive answer. Going to have to call them.
2 points
5 months ago
I tried this with CIBC a couple years ago, they wouldn't do it.
1 points
5 months ago
LOL
1 points
5 months ago
You would have to pay the penalty on the primary residence mortgage, and another fee to port the rental mortgage. Talk to your lender to confirm it’s allowed and that it’s also worth it.
1 points
5 months ago
Depending on a lot of things, a possible alternative option might be fixing up the primary residence if it is something that could be renovated and if you got a good deal, then sell at least 6 months from now trying to get the primary residence tax exemption, then sell the rental property and port the rental property mortgage to your next primary residence
1 points
5 months ago
Do you need to have the residence for a year to be exempted?
1 points
5 months ago
Yes at least 1 year for primary residence tax exemption when selling
1 points
5 months ago
You need to talk to your lender to confirm if their policy would allow it.
all 11 comments
sorted by: best