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How Does Negative Equity Work with Portable Mortgages?

If you have a portable mortgage and it’s time to move, you’re going to have to deal with something called “negative equity”.


If you have a portable mortgage and it’s time to move, you’re going to have to deal with something called “negative equity”. This is just a fancy term for money that you still owe from your first house – and seeing as the nature of a portable mortgage is to move from one home to another, your debt moves with you. So if you’ve paid off 60% of your mortgage from your first home and move, your negative equity of 40% is going to move with you. When you work with one of our Toronto mortgage brokers you’ll learn how to calculate positive and negative equity, but here we’ll cover it a bit so you know in advance. Let’s get started!

What is Negative Equity?

What you owe on a home is known as “negative equity”. When you have a portable mortgage you’re going to carry this with you to your next home (and the next one if you still owe money). It’s a fact of life, and that’s why you really want to keep on top of your home when you work with this kind of financing. That way you’ll be able to keep saving, have that safety net there for you when you need it and not end up having to deal with 80% negative equity and high down payments to move on to your next home.

Is Mortgage Refinancing an Option for Portable Mortgages?

Yes, just like any other kind of mortgage you can refinance a portable mortgage. You’ll have a trickier time with it though, that’s why you’ll want to work with one of our Canada mortgage brokers. If you’re in the Toronto area you’ll find a lot of experienced Toronto mortgage brokers that know all of the best lenders in the area too. It’s important to know what the market conditions are and what you’re facing BEFORE you go to your current lender for a refinance. Talk to us first!

Will You Save More with a Portable Mortgage?

If you plan on moving during the life of your mortgage, yes, you will save a bundle with a portable mortgage. It’s important to point out that you will pay slightly higher interest rates than you would over a traditionally packaged mortgage, but the benefits outweigh this easily. Imagine all the closing costs, the pain of finding buyers and realtors and all that other stuff you have to deal with when selling a home – disappearing into thin air! When you go with a portable mortgage you save yourself the headaches of selling a home and you keep those great terms intact.

Let Us Help You Find the Right Deal!

If you want to find the best deal, you want to work with us as your Canada mortgage broker. We’ll be able to help you zero in on the best deal for you and help you understand if a portable mortgage is really in your best interest. Contact us today and see how you can save.

Homebase Mortgages is a leading Toronto mortgage broker, which specializes in all types of mortgages ranging from home equity loans, second mortgages, private mortgages, mortgage refinancing, mortgage renewals, home mortgages and hard money lending.


 portable mortgages
 private mortgages
 second mortgages
 home equity loans
 mortgage refinancing

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