What is a 'portable' mortgage, and why might it benefit an Alberta homeowner who is relocating within the province?
Correct Answer
B) A mortgage that allows the borrower to transfer the existing mortgage terms and rate to a new property without penalty
A portable mortgage allows the borrower to transfer their existing mortgage (including the interest rate and remaining term) to a new property when they sell and buy. In Alberta, where job relocations are common (especially in the oil and gas sector), a portable mortgage can save thousands in penalties and provide rate advantages if the existing rate is lower than current rates.
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