Can I Move My Mortgage to a New Home? How Porting Works in Canada
You Can Take Your Mortgage With You… Sometimes
Most homeowners think selling their property means paying off their mortgage. In reality, if your mortgage is portable, you may be able to transfer it to a new property — a process called porting — and save thousands in prepayment penalties.
But here’s the catch: porting isn’t automatic. You have to qualify again, your lender has to allow it, and the property you’re buying must fit their rules.
What is Porting a Mortgage?
Porting is when you transfer your existing mortgage rate, term, and amortization from your current property to a new one you’re purchasing.
The biggest benefit: avoiding the penalty for breaking your mortgage early, while keeping your current interest rate if it’s better than today’s market rates.
First Step: Check if Your Mortgage is Portable
Not all mortgages can be ported. Many variable-rate mortgages and deep-discount restricted mortgages do not have a portability feature. Your mortgage agreement will spell it out, or you can ask your lender or broker directly.
The Three Types of Ports
Port Decrease
Your new mortgage balance will be lower than your current one.
Usually happens when you buy a less expensive property.
You still port your existing mortgage, but the amount you pay down is simply removed from the balance — no new money is added.
You still have to qualify for the new property under today’s rules.
Port Increase
You port your existing mortgage but add more money for the new home.
The extra funds are at today’s interest rates.
Your payment is based on a blended rate combining your old rate and the new rate, weighted by each amount.
Keeps one payment, but part of it is essentially “new money” at a higher or lower rate.
Straight Port
The rarest type — you move your mortgage dollar for dollar to the new property.
Nothing changes except the address on file.
This almost never happens without planning since the purchase price and down payment would need to match the old balance exactly.
Down payments are often adjusted strategically to make this happen.
Benefits of Porting
Avoids prepayment penalties when selling and buying.
Lets you keep your current interest rate (a huge win if today’s rates are higher).
Maintains your existing amortization schedule so you don’t start over.
Limitations and Fine Print
1. You Must Requalify
Even though you’re staying with the same lender, they will reassess your finances and credit. You’ll need to meet current lending guidelines, not the ones in place when you first got the mortgage.
2. The New Property Must Qualify Too
Your lender will review the property’s Loan-to-Value (LTV) ratio, location, and type. Some lenders won’t port to certain property types or outside specific geographic areas.
3. Tight Timelines
Most lenders require the sale of your current home and the purchase of your new home to be completed within 30 to 120 days for the port to be valid.
4. Province-to-Province Moves
Porting is possible when moving to a different province - but only if your lender operates in both areas.
5. Amortization Woes
When porting your mortgage, your amortization remains the same. This can be a good thing or neutral thing for some - but if you are doing a port increase, you may see a sharp spike in mortgage payments - versus restructuring your mortgage.
When Porting Might Not Be Worth It
Porting is usually about keeping a great rate and avoiding penalties - but there are times it makes sense to break instead:
If your current rate is much higher than today’s rates, breaking and paying the penalty could still save you more in the long run.
If your lender’s porting rules are too restrictive for your move.
If your financial situation or property type won’t qualify under their guidelines.
Other options?
Although Porting is an option for your mortgage - it’s not the only option.
Get a new mortgage - sometimes makes more sense especially if you want to restructure your mortgage to extend your amortization for affordability
Refinance your current home to pull equity for the new home - and then sell
Mortgage Porting FAQs
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Porting can be worth it if your current interest rate is lower than today’s market rates and your lender’s rules allow it. You’ll avoid a prepayment penalty and keep your existing rate. But if today’s rates are much lower, it may be cheaper to break your mortgage and pay the penalty.
Generally, if your rate is relatively similar to today’s rates (if you funded your previous mortgage recently-ish), I’d recommend porting - since what you’d be looking at is a penalty with no upsides of a better rate. If you have a worse rate than what’s on the market, it’s worth reviewing breaking and getting a new mortgage. If you have a significantly better rate - it’s a no brainer. -
No. Porting is only possible if your mortgage has a portability feature. Many variable-rate mortgages and some low-rate “no frills” products don’t allow porting. Always check your mortgage agreement or ask your broker.
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Yes. Even if you keep the same lender, you must requalify under current income, debt, and credit guidelines. Your new property must also meet the lender’s standards.
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Most lenders give you between 30 and 120 days from selling your current home to buying your new one. If you miss the window, you’ll have to break your mortgage and may face penalties.
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Yes, if your lender operates in both locations and the property type meets their guidelines. Always confirm with your broker before making an offer.
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No. Your amortization schedule continues from where you left off - you don’t start over unless you refinance instead of port.
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Mortgage life or disability insurance from your lender usually does not transfer. You’ll need to reapply for coverage on the new mortgage.
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A blended rate happens in a port increase, where your existing mortgage is combined with new funds at today’s rates. The lender calculates a weighted average of both rates to create one new rate.
Bottom Line
Porting can be a smart way to move your mortgage to a new home without paying thousands in penalties - but only if you meet your lender’s rules and timelines.
The type of port you do, whether you qualify again, and the specifics of your lender’s program can make or break the deal.
If you’re planning to sell your home and buy another, talk to a mortgage broker before you list. I can help you figure out whether porting is the best move, which type you qualify for, and how to structure your purchase to save the most money.
📩 Book your free consult today before you make your next move.
Jeff Dinsmore
Mortgage Broker
FSRA # 10315
VeloMortgage.ca
TMG - The Mortgage Group