All You Need to Know About Mortgage Portability in Canada

Moving homes doesn’t mean you need to start your mortgage from scratch. If you’re mid-way through a term and worried about penalties or rising rates, mortgage portability could be your financial lifesaver. This guide will walk you through how porting works, who it’s best for, and the steps to make it happen — without all the mortgage jargon.

What Is Mortgage Portability?

Mortgage portability is a feature that lets you move your existing mortgage from one property to another. In other words, if you’re selling your home and buying a new one, you can take your current mortgage terms — including the interest rate — and apply them to the new property. This can help you avoid paying a prepayment penalty and potentially lock in a better rate than what’s currently offered.
To qualify, you usually need to stick with the same lender and meet their conditions for approval on the new property.

Why Do Homeowners Choose to Port Their Mortgage?

1. Avoid Prepayment Penalties

Breaking a mortgage mid-term can cost thousands in penalties. Porting lets you sidestep this.

2. Keep a Great Rate

If you locked in a low interest rate but need to move, porting lets you keep that rate instead of settling for a higher one.

3. Simplify the Process

Rather than starting a new mortgage application from scratch, porting lets you build on the existing contract — as long as you still qualify.

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Is Porting Available for All Mortgages?

Not always. Most fixed-rate mortgages are portable, but not all variable-rate mortgages are — especially if you’re increasing your loan amount. Also, insured mortgages (those with less than 20% down) often can’t be ported if the new property costs over $1.5 million.

Even if your mortgage is technically portable, you’ll still need to requalify. That means passing the stress test again and proving you can afford the new home.

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How the Mortgage Porting Process Works

Step 1: Talk to Your Lender Early

Before listing your current home, talk to your lender. Ask about your mortgage’s portability, and what conditions or timelines apply.

Step 2: Apply for Porting Approval

Once you’ve found a new home, you’ll need to submit a mortgage application — just like you did with your original home. Your lender will check your income, credit, and the new property.

Step 3: Sell and Buy Within the Time Window

Most lenders give you 30–90 days to sell your current home and close on your new one. Miss that window and you could be hit with penalties.

Step 4: Close the Deals and Transfer the Mortgage

Your lawyer, realtor, and lender will coordinate to ensure the old mortgage is paid out and the new one set up — all with your existing lender.

Step 5: Review Your Porting Agreement

This is the official document confirming the transfer. Review the amortization, interest rate, and whether any new funds will be blended or set up as a separate component.

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Porting with Changes: Upsizing or Downsizing

Buying a More Expensive Home?

You’ll need a larger mortgage, and your lender may allow you to blend your old rate with the current rate. This is called a blended rate, and it’s a middle ground between old and new.

Buying a Cheaper Home?

If your new mortgage is smaller, your lender may charge a prepayment penalty on the difference — especially if it exceeds your prepayment privileges.

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Things to Watch Out For

• Short timelines – Missing the lender’s deadline to close both sales could nullify your portability.
• Stress test rules – You must qualify again at the benchmark rate.
• New property risks – Not all properties will be accepted by your lender.
• Paid-down amortization – If you’ve paid off a chunk of your original mortgage, your monthly payments may jump if that amortization must stay the same.

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Alternatives to Porting

1. Break Your Mortgage

You can end your current mortgage and start a new one — but beware of prepayment penalties.

2. Blend and Extend

Some lenders let you blend your rate with a new one and start a fresh term — without moving homes.

3. Have the Buyer Assume Your Mortgage

If allowed, your homebuyer may take over your existing mortgage — though this is rare and requires lender approval.

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Frequently Asked Questions

Can I port my mortgage to a more expensive property?
Yes, but you’ll have to qualify for the extra amount. The lender may offer a blended rate.

Is there a fee to port a mortgage?
Usually no, but legal and appraisal fees may apply.

Can I port a variable-rate mortgage?
Sometimes — but usually only if you don’t need to increase the mortgage amount.

Do I need to requalify if I’m porting?
Yes, lenders will reassess your income, credit, and the new property.

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Final Thoughts

Porting your mortgage can save you from steep penalties and help you keep a low interest rate — but it’s not always simple. You need to act fast, requalify, and stick to your lender’s deadlines.

Before you list your home, speak with your mortgage broker or lender to understand your options. If done right, mortgage portability can make your next move a lot smoother — and cheaper.