Explain: How Porting or Transferring Your Mortgage Works

Jan 02, 2023 By Susan Kelly

What is Mortgage Porting?

Mortgage porting, also known as mortgage transferring or switching mortgages, involves moving your existing home loan to a new lender. This can be done when you want to change lenders due to better terms and conditions or lower interest rates but don't want to lose the equity in the property. It enables you to take advantage of different offers held by other lenders while keeping the same mortgage balance and rate you currently have.

Who Can Port Their Mortgage?

Only some people who have an existing mortgage can switch it to another lender. Those eligible for porting should meet specific criteria, including an excellent credit score. The lender will look into your financial history, income, and credit score to determine your eligibility.

How Porting or Transferring Your Mortgage Works?

Porting or transferring your mortgage to another lender can be a great way to save money and get better interest rates, but it can be more complex. You must take specific steps to ensure the process is done correctly and successfully.

The first step in porting a mortgage is gathering all necessary documents. This includes proof of income, debt-to-income ratios, assets and liabilities, current mortgage loan information, credit report, and bank statements. You must also be aware of your state's lending rules and regulations. Once you have all of the documents gathered, it's time to contact the lender you want to port your mortgage to. It would help if you got in touch with a consultant who will review your application and advise you on the best action.

The next step is submitting the necessary paperwork to the lender to you want to port your mortgage. This includes proof of income, debt-to-income ratios, assets and liabilities, current mortgage loan information, credit report, and bank statements. Once you've submitted the paperwork, you should expect to hear back within a few days or weeks. Porting your mortgage will involve some fees, so it's essential to understand these before signing any documents. It's also a good idea to shop around and compare different lenders to get the best deal.

Once you have heard back from the lender and agreed on a deal, the actual porting of your mortgage can begin. This involves transferring all of your existing paperwork to the new lender and ensuring that any additional documents are sent in order. The final step is for the lender to complete the mortgage port, usually within days.

Benefits of Mortgage Porting

Porting a mortgage has numerous advantages that make it attractive for many borrowers. Here are some of the benefits:

• Lower interest rates – One of the main reasons people choose to port their mortgages is due to lower interest rates. This can significantly reduce your monthly payments, giving you more money each month to spend or save.

• Easier process than applying for a new loan – Applying for a new loan can be time-consuming and tedious, whereas porting your existing mortgage requires less paperwork and often takes much less time than getting a new one.

• No need to pay early repayment charges – When switching lenders, you don't need to worry about early repayment charges. This can save you a lot of money, depending on your loan amount.

• Keep the same mortgage balance and terms – By porting your existing mortgage, you won't have to start over with a completely new loan. You will keep the same mortgage balance and times that you had with your previous lender.

Tips for Mortgage Porting

If you want to make sure that the process of switching lenders goes as smoothly as possible, here are some tips to help:

• Shop around – Take some time to compare different lenders to find one that offers better terms and lower interest rates than your current one.

• Get pre-approval – Before you apply for a mortgage, get pre-approval from your new lender. This will give you an idea of the terms they are offering and help you make sure you qualify for their loan.

• Read the fine print – Read all the documents carefully before signing any paperwork. Pay particular attention to any fees involved in porting your mortgage.

• Check out refinancing options – If you find that switching lenders is not feasible due to high costs or other reasons, consider refinancing. This could involve taking out another loan with better terms than your current one.


Mortgage porting has many advantages, but it's essential to research and find the best deal for you. Remember that this is a complicated process, and it's necessary to understand all the terms, fees, and charges involved before making any decisions. Take some time to compare different lenders to find one that offers the best rates and terms, and make sure you read all paperwork carefully before signing anything. With careful planning and the correct information, porting your mortgage can be a great way to take advantage of better terms while keeping the same balance on your loan.

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