Portability refers to your ability to take your mortgage with you when you move houses. Since you're mortgage isn't portable, yes you would have to discharge the mortgage and pay the penalty if you were to move. If the mortgage is assumable, the person buying your house may assume the mortgage, and you wouldn't have to pay the penalty.Emilio06 wrote: ↑May 18th, 2017 1:59 pmScotiabank offered me a 2.21% 5 year variable rate on an uninsured mortgage worth about 300k for my renewal. 30 year amortization, 10/10 prepayment, standard charge (no STEP/collateral)... However the mortgage is not "portable". What does that mean? I can't move it to another lender without paying a penalty?
This is strange of Scotiabank to not allow you the portability option. In the broker channel, the Flex Value Variable Rate Mortgage is portable, I just read the standard charge terms to be sure. The pre-payment options are also not great. They will usually offer a 20/20.
Ask them why it's not portable, and ask them for 20/20.
Concierge Mortgage Group