Is Porting a Mortgage Worth It? Your Guide to Moving Your Loan

Buying one home is a hurdle, but moving to another brings its own set of challenges. With rising interest rates, strict lending rules, and higher home prices, changing properties is more complex than ever. Many homeowners are locked into mortgage terms that no longer suit their needs, yet breaking those terms can come with steep penalties. Relocating for work, making room for a growing family, or responding to life changes often forces a closer look at your current loan and finding a way to carry it over to the next home.

Porting a mortgage lets homeowners move their existing mortgage to a new property without starting over. But it doesn’t work in every situation. We look into how porting works, when it makes sense, and what to watch for before making a decision.

What Is Mortgage Porting?

Mortgage porting means shifting your existing mortgage—including the interest rate, remaining balance, and term—to a new property with the same lender. It lets you avoid breaking your mortgage contract and paying any early repayment fees. If you’re wondering what this means, it’s essentially carrying your existing loan to a new home without starting from scratch.

In Canada, porting is viable if your mortgage is portable and you both sell your current home and buy a new one within a set window, often between 30 and 120 days. You preserve the favourable terms of your initial agreement. The process involves applying to your lender, qualifying under current criteria, and completing the port within the required timeframe.

Which Mortgages Can You Port?

Not every mortgage comes with the option to port.

·         Fixed-Rate Mortgages: Most fixed-rate mortgages are portable, but look out for those labelled “restricted.” These mortgages often offer a slightly lower rate in exchange for tighter rules that can block you from features like porting. Check for this label first, as it could limit your options.

·         Variable-Rate Mortgages: These usually cannot be ported at all. Some lenders might allow it if you first switch to a fixed rate, but that change could come with a higher interest rate or added fees. It’s not always a straightforward swap.

Before you try to port your mortgage, read your agreement carefully. Lenders have their own rules about timing and qualifying.

·         Some lenders let you port only if the new mortgage is equal to or greater than your current balance.

·         You may be required to requalify under today’s income and debt standards, even if your finances haven’t changed much.

If you’re porting to a higher-value property, your lender may offer a blended rate for the added amount. However, if you’re porting to a cheaper house, the unused portion of your loan might be treated like a lump-sum payment. Without prepayment privileges, that could trigger a penalty.

Pros of Porting a Mortgage

Cons of Porting a Mortgage

FAQs About Mortgage Porting

Can I port a mortgage if I’m switching property types or moving to another province?

Not always. Most lenders allow porting only between similar property types, such as moving from one primary residence to another. Shifting from a rental property to a personal residence, or relocating to a new province, can complicate things. Some lenders may reject the application based on changing loan risk profiles. Always ask how your lender handles cross-jurisdiction or changing property type cases.

Can I change my amortization or loan structure when I port?

In most cases, no. When porting your mortgage, you are agreeing to carry over the structure of the original agreement. This often means no changes to amortization, payment schedule, or loan features. If you want to modify your loan structure, you’ll likely need to break the mortgage and reapply.

What if my income or credit has changed since I first got the mortgage?

Many borrowers assume they won't need to requalify, but that’s not always true. Most lenders will reassess your financial profile. If your income has dropped, debts have increased, or your credit score has taken a hit, it could prevent you from being able to port your mortgage at all. Get clarity from your lender upfront about their requalification process.

What happens if my sale and purchase dates don’t match?

This is a common and costly oversight. If there's a gap outside the lender’s set window (usually 30 to 120 days), you may lose your right to port. Some lenders offer bridge financing, while others don’t. Always ask if they allow you to port if your purchase closes later than your sale. If not, you may have to pay the penalty up front and then reapply.

Is porting a mortgage still a good idea if I plan to refinance soon?

Not always. Porting a mortgage locks you into the remainder of your agreement. If you’re planning to access home equity, consolidate debt, or restructure your loan in the near future, porting may delay those goals or force you into a second penalty later on. Weigh the short-term savings of porting against the long-term cost of missing a better refinancing window.

Thinking about your next move? Porting a mortgage can be a smart financial decision when your existing rate is better than what’s available now and your timeline aligns with your lender’s conditions. But the fine print can be easy to miss.

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