Should I break my mortgage or port and increase?
I have a 5-year closed variable rate mortgage right now with a balance of $140,000 at 2.30% with 4 years left in the term.
According to the mortgage contract, the penalty to break the mortgage is simple 3 month interest + admin fees, which equates to around $1200.
I am planning to sell my existing home and buy a new property. I would need to increase by mortgage by another $75K approximately, so the new mortgage amount will be around $215,000.
I am not sure whether I should port and increase my mortgage or if I should break the existing mortgage and negotiate a new mortgage at the best rate with a new lender. I am thinking that if I try to port, the existing lender may not offer me the best rate on the increased amount.
Can somebody tell me if I should break my mortgage or if I should port and increase? What are the pros and cons for both options?
According to the mortgage contract, the penalty to break the mortgage is simple 3 month interest + admin fees, which equates to around $1200.
I am planning to sell my existing home and buy a new property. I would need to increase by mortgage by another $75K approximately, so the new mortgage amount will be around $215,000.
I am not sure whether I should port and increase my mortgage or if I should break the existing mortgage and negotiate a new mortgage at the best rate with a new lender. I am thinking that if I try to port, the existing lender may not offer me the best rate on the increased amount.
Can somebody tell me if I should break my mortgage or if I should port and increase? What are the pros and cons for both options?