If you’re getting a mortgage — or already have one — there are three terms you absolutely need to understand:

Prepayment, Portability & Assumability.

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Here’s what they actually mean 👇

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1️⃣ Prepayments

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Prepayments let you pay down your mortgage faster by putting extra money directly toward the principal.

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Depending on your lender, you can:

✔️ increase your regular payment amount

✔️ make lump-sum payments (bonus, tax refund, gift money, etc.)

✔️ combine both options

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These extra payments go straight to the principal — meaning less interest over time and faster payoff.

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Every lender has different rules, so always ask us what YOUR mortgage allows.

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2️⃣ Portability

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Portability lets you take your existing mortgage — including your rate and remaining term — and move it to a new property when you sell your current home.

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This can help you:

✔️ avoid penalties

✔️ avoid breaking your mortgage early

✔️ keep your current rate

✔️ reduce legal and discharge costs

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If you need a bigger mortgage, many lenders offer “blend & extend” options to increase the amount without fully breaking the loan.

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3️⃣ Assumability

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Assumability means someone else can take over (assume) your existing mortgage — or you can take over theirs.

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This most often happens within families, for example:

✔️ parents transferring their home to children

✔️ keeping an existing low rate instead of starting a new mortgage

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The person assuming the mortgage still needs to qualify for it, just like any normal application — same income, credit, and debt-ratio requirements.

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💬 Final Thought

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These three features — prepayment, portability, and assumability — can save you thousands when they’re used properly.

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If you’re not sure which options your mortgage includes, or you want to compare lenders, message The Frontline Mortgage Group anytime. We’ll walk you through it and help you make the smartest choice. 💬