TD Mortgage Portability Rules (2025): Windows, Conditions, and Traps

Moving homes doesn’t always mean starting a brand-new mortgage. Many Canadian lenders, including TD (Toronto-Dominion Bank), offer a feature called mortgage portability.

Porting a mortgage allows you to transfer your existing interest rate, balance, and terms to a new property—helpful if you’re moving before your mortgage term ends. It can save you from prepayment penalties and potentially preserve a lower interest rate if today’s rates are higher.

But portability comes with rules, timelines, and conditions that borrowers need to understand. This guide covers TD’s 2025 mortgage portability rules: how it works, eligibility windows, key conditions, and common traps.

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Why Port Your TD Mortgage?

Borrowers consider portability for three main reasons:

1. Avoiding Penalties
   • Breaking a TD fixed mortgage early could trigger thousands in prepayment penalties (IRD or 3 months’ interest). Portability avoids or reduces these costs.
2. Preserving a Lower Rate
   • If your current mortgage has a lower rate than what’s available today, porting lets you keep it.
3. Flexibility in Moving
   • Lets you buy a new home before your old mortgage term is finished, without starting from scratch.

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TD Mortgage Portability Windows

TD allows a porting window between the sale of your old property and the purchase of your new one.

• Standard Window: Typically 30 to 120 days.
• Closing Gap: Your new purchase must close within this timeframe after your old property is discharged.
• Bridging Option: If your purchase closes before your sale, TD may allow bridge financing—but only if you qualify.

Example:
You sell your condo closing on July 15, and your new home closes on August 20. Since that’s within 35 days, your mortgage is eligible to port.

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Conditions for Porting with TD

Portability is not automatic—you must meet certain conditions:

1. Same Borrowers: The borrower(s) on the new mortgage must match the old one. Adding or removing a name may require requalification.
2. Same Lender: You must remain with TD for the new property. Switching lenders cancels portability.
3. New Property Approval: The new property must meet TD’s lending criteria (appraisal, location, property type).
4. Credit Requalification: Even if you’re an existing client, TD may recheck your income, credit score, and debt ratios for the new loan.
5. Timeframe Compliance: The port must fall within TD’s allowed transfer window (30–120 days).

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TD’s Blend-and-Extend Option

If your new mortgage amount is higher than your old one, TD offers a blend-and-extend:

• Blended Rate: Your old rate is averaged with current rates for the top-up portion.
• Extended Term: You may need to extend your term to accommodate the new structure.

Example:

• Old mortgage: $300,000 at 2.8%
• New mortgage: $450,000
• The first $300,000 keeps the 2.8% rate, while the extra $150,000 is priced at current TD rates. The result is a blended overall rate.

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Traps to Watch Out For

While portability sounds appealing, there are pitfalls:

1. Short Windows
   • If your new purchase doesn’t close within the allowed timeframe, portability is denied, and penalties apply.
2. Requalification Risk
   • If your income or debt situation changed (e.g., new job, car loan), you might not qualify for the port.
3. Higher Top-Up Rates
   • The extra portion of your mortgage may be at a much higher rate, diluting your old savings.
4. Property Restrictions
   • TD may decline certain property types (e.g., rural land, non-standard construction).
5. Not Always the Best Deal
   • Even with portability, sometimes breaking your mortgage and switching lenders can save more long term.

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Real-Life Scenario

Case Study: Lisa and Mark in Toronto

• Existing TD mortgage: $400,000 at 2.9% fixed, 3 years left
• Selling condo (closing in May), buying house (closing in July)
• House price requires $550,000 mortgage

By porting, Lisa and Mark:

• Keep $400,000 at 2.9%
• Add $150,000 at 5.2% (current rate), blended overall ≈ 3.6%
• Save $12,000 in penalties compared to breaking outright

But if they had refinanced with another lender at 3.4% on the full $550,000, they might have come out ahead. This highlights the importance of comparing.

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Key Takeaways

• TD’s portability window is 30–120 days between sale and purchase.
• Borrowers must requalify, and new properties must meet TD’s approval.
• Blending rates can help but may raise overall borrowing costs.
• Watch for traps: short windows, requalification, or higher top-up rates.
• Always compare portability vs. refinancing before deciding.

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Should You Port Your TD Mortgage?

Porting can be a powerful way to save money and preserve a lower rate, especially if you’re moving mid-term. But it’s not a one-size-fits-all solution.

If you’re planning to move in 2025 and have a TD mortgage, review your eligibility window, understand the conditions, and calculate whether porting or refinancing gives you the better deal.

The key? Don’t assume portability is always best—run the numbers and get expert advice.

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