MCAP portability options

If you are thinking about moving to a new home and you have an MCAP mortgage, you may be wondering if your mortgage is my MCAP mortgage portable. The answer is yes. MCAP mortgages are portable, and you have a few options when it comes to porting your mortgage. Portable mortgages are used to keep your current interest rate, and avoid any pesky penalties. Knowing your MCAP portability options is key.

Port & Increase

One option is to port and increase your mortgage. This means that you can transfer your existing mortgage to your new property and increase the amount of your mortgage by a minimum of $10,000. If your current mortgage rate is fixed, you can blend and extend back to a 5-year term, and the penalty will be incorporated into the blend calculation but not charged on the payout statement. However, there is no blend option for VRM products or Fusion product (fixed or VRM).

If you choose to take current rates, the penalty is reduced by 10%. The reinvestment fee, if applicable, is waived, and you are paid on the full loan amount regardless of which option you take.

Port & Decrease

Another option is to port and decrease your mortgage. This means that you can transfer the remaining term, amortization, and current rate of your mortgage to your new property. There is no penalty unless the new loan amount is outside your 20% lump sum allowance. If it is outside your allowance, the standard penalty applies on the difference.

If you choose to take current rates instead of transferring the remaining term, the penalty is applicable and reduced by 10%.

Straight Port

A third option is to do a straight port. This means that you can transfer the remaining term, amortization, and current rate of your mortgage to your new property without any penalty. If you choose to take current rates instead of transferring the remaining term, the penalty is applied and reduced by 10%.

Other Port Info

There are a few other things to keep in mind when it comes to porting your MCAP mortgage. If you are currently in Value Flex, you must stay within Value Flex to use your port options. Closing dates between your purchase and sale must be within 90 days of each other to utilize port options. If the sale closes first, you will be charged full fees upon payout and reimbursed applicable penalty/reimbursement fees as above.

In conclusion, if you have an MCAP mortgage and want to know what the MCAP portability options are for you call today.

View my video on this here.