Porting a existing mortgage

Joeisaware539

Good evening, I’m asking for a good friend.
They have a house valued, at around 229K. 

They are wanting to move to a bigger house to upscale, how does mortgage porting work?

they are going to be borrowing more from the bank as a result of the move. They are looking to buy around 390K to 440K. 

Any advice is greatly appreciated.

Thrugelmir

Porting relates to the terms and conditions attached to the current loan. This is transfered to the new property. A new mortgage product is selected to top up to the total amount required. 

The normal underwriting process is conducted to assess affordability etc. 

Joeisaware539

Thrugelmir said:

Porting relates to the terms and conditions attached to the current loan. This is transfered to the new property. A new mortgage product is selected to top up to the total amount required. 

The normal underwriting process is conducted to assess affordability etc. 

Many thanks, would it be like applying for a brand new mortgage? 

Thrugelmir

In effect yes it is. Will be subject to the underwriting criteria at the date of application. 

Joeisaware539

Many thanks,

so it’s the whole process of applying from scratch to move? Does this whole process (as if starting back over) does the same apply if moving with using your own money instead of asking bank for further funds?

kingstreet

Yep.You have to qualify for the new mortgage to port the terms to...