If you’re someone who might need to relocate or upgrade your property, the prospect of refinancing your loan can seem overwhelming. But with portable loans, you have a flexible alternative that allows you to carry your existing loan terms over to a new property, saving you time, costs, and hassle. At AFM Group, we’re here to help you understand the advantages of portable loans and how they can simplify your life during property transitions.

What is a Portable Loan?

A portable loan allows you to transfer an existing loan to a new property without the need to refinance. This can be especially useful if you’ve secured a favorable interest rate or terms on your current loan that you don’t want to lose. By choosing portability, you can avoid the lengthy and costly process of applying for a brand-new mortgage, while keeping your original loan terms intact.

How Do Portable Loans Work?

When you sell your current property and buy a new one, a portable loan can let you take your existing loan balance, terms, and interest rate along with you. Here’s how it typically works:

Sale of Your Current Home

When you sell your current property, your mortgage is paid out, but with a portable loan, your current loan terms can be applied to the new property.

Purchase of a New Property

If you buy a new home within a specified timeframe, you can apply your existing loan to the new property, keeping your current rate and terms.

Portability Fee (if applicable)

Some lenders may apply a small porting fee, but this fee is often less than the cost of refinancing and applying for a new loan.

Key Benefits of Portable Loans

1. Cost Savings

A portable loan can save you on early repayment fees, application costs, and other refinancing expenses. If you’ve locked in a great interest rate, porting allows you to retain it, avoiding potentially higher rates with a new loan.

2. Interest Rate Stability

By porting, you can keep the same interest rate as your original loan, which is beneficial if you secured a lower rate that may no longer be available in today’s market.

3. Convenience and Simplicity

Porting your loan means a simpler process when buying a new home, with minimal paperwork and fewer administrative steps than starting from scratch with a new loan.

4. Preserving Favorable Terms

If you negotiated favorable terms on your existing loan, porting allows you to keep those benefits intact, even as you transition to a new home.

Considerations with Portable Loans

While portable loans are a convenient option for many, it’s important to weigh potential considerations:

• Eligibility for Porting: Not all loans come with a portability option. Before applying, check with your lender to ensure portability is available.
• Approval Process: Even with a portable loan, the new property must meet your lender’s criteria and undergo an approval process.
• Timing: Some lenders require you to buy your new property within a certain timeframe, so be mindful of timing to ensure porting is allowed.

When is a Portable Loan Right for You?

Portable loans are particularly beneficial if:

• You anticipate relocating but want to keep favorable terms and interest rates.
• You’ve secured a low rate and would prefer not to refinance at a higher rate.
• You’re interested in maintaining flexibility without incurring unnecessary fees.

Steps to Apply for a Portable Loan

Consult with AFM Group

Start by consulting with a mortgage expert at AFM Group. We’ll help you review your options and determine if a portable loan is the right fit for your financial goals.

Review Loan Terms

Ensure that portability is a feature of your current mortgage and understand any associated fees or requirements.

Set a Timeline

Plan for your move within the lender’s required timeline to qualify for portability, keeping in close contact with your lender or broker to ensure you meet any deadlines.

Why Choose AFM Group for Your Portable Loan Needs?

At AFM Group, we are dedicated to providing loan options that align with your financial goals and lifestyle needs. We understand that life changes, and we’re here to make financing easier as you transition to your next property.

Benefits of Choosing AFM Group

• Competitive Rates: We offer competitive interest rates to help you save on financing, even when porting your loan.
• Expert Guidance: Our experienced team can answer your questions about portable loans and guide you through every step of the process.
• Flexible Solutions: At AFM Group, we know flexibility matters, and we offer a range of loan products to fit your individual needs.

Thinking about moving? Let AFM Group help make the transition seamless with a portable loan option that keeps your current loan terms working for you.