Real Estate

Mortgage Porting Outside Allotted 120 Days

  • Last Updated:
  • Oct 5th, 2020 1:13 pm
[OP]
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Nov 30, 2009
474 posts
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Toronto/Mississauga

Mortgage Porting Outside Allotted 120 Days

Got a delay notice with a firm occupancy mid-January for our pre-con stacked townhouse, but we sold our condo which closed October 1st and had to discharge our mortgage. We were with RBC and their terms for porting our mortgage were to have our next property close within 120 days to get our discharge payment penalty refunded. January 29, 2021 would be the 120th day and given if we actually get occupancy mid-January which leaves the builder only 2 weeks to register the neighborhood and set a mortgage closing date which seems unrealistic. What options do I have here to recoup as much as my discharge penalty payment as possible?
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Jr. Member
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Jun 3, 2019
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GTA
DRGN89 wrote: Got a delay notice with a firm occupancy mid-January for our pre-con stacked townhouse, but we sold our condo which closed October 1st and had to discharge our mortgage. We were with RBC and their terms for porting our mortgage were to have our next property close within 120 days to get our discharge payment penalty refunded. January 29, 2021 would be the 120th day and given if we actually get occupancy mid-January which leaves the builder only 2 weeks to register the neighborhood and set a mortgage closing date which seems unrealistic. What options do I have here to recoup as much as my discharge penalty payment as possible?
If you are staying with RBC, they should be able to credit you a good portion of the penalties paid on the discharge of the original mortgage should the delay go over the 120 days. If not I'd look elsewhere...that said RBC generally has higher rates than the other big 5 banks so you may want to shop around, and I'd check with a mortgage broker as well.
Last edited by trebmember on Oct 5th, 2020 1:29 pm, edited 1 time in total.
Realtor® & Mortgage Agent
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Sep 14, 2006
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As an example, TD refunds a portion of the penalty if you go back to them for a mortgage within a year after discharging your first mortgage. I don’t think CIBC does that. Someone mentioned RBC does a portion too. You gotta ask the bank for their policy.
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