Hello everyone.
I am trying to port a mortgage in Alberta, Canada from a cheaper to a more expensive property. (For the sake of an example, let’ say from 210,000 to 310,000 CAD.)
I ran into a mortgage broker that told me I would need ANOTHER downpayment for the porting process. My mortgage contract with the bank (RBC in my case, and it’s important because each lender has specific demands) says nothing about another downpayment, but just that I can apply for an increase for a new property and if they decide I qualify, then I’m good to go.
The broker I spoke to (and did take everything she said with a BIG spoon of salt) said that I would need said downpayment regardless of how much I paid for the previous property, and that if I don’t have it I can go through a lender she could recommend, borrow the downpayment against a credit line (?!?) and start the process with it. A minute later she said that I can’t pay the downpayment with borrowed money when I mentioned I could get the downpayment from my own credit line, thus eliminating her middle man.
Of course this is where flags started rising and alarm bells ringing. Which brings me to the following question: if I port a mortgage through RBC, from a cheaper to a more expensive property, do I need to fork the downpayment AGAIN?
Thanks in advance. I’ll go see the bank tomorrow anyways, but in the meantime I’d like to hear from someone who knows this kind of stuff or who has been through it before.