Selling your current home and buying a new one? Porting your mortgage might save you significant penalty costs. Here's how mortgage portability works and when it's the right choice.
What Is Mortgage Porting?
Porting allows you to transfer your existing mortgage—with its current rate, terms, and balance—to a new property when you move.
The key benefit: avoid prepayment penalties.
How Porting Works
The basic process:
- Sell your current home
- Buy new home with the same lender
- Transfer existing mortgage to new property
- Top up if new home costs more
Both transactions typically must happen within 30-90 days of each other.
When Porting Makes Sense
Porting is beneficial when:
- ✅ Your current rate is lower than today's rates
- ✅ Breaking would trigger significant penalties
- ✅ You're staying with the same lender anyway
- ✅ You qualify for the new purchase
Thinking About Moving?
Contact us to analyze whether porting, blending, or refinancing is your best option.
Requirements for Porting
To port your mortgage:
- New property must qualify with your lender
- You must still qualify based on current rules
- Both transactions happen within lender's timeline
- Your mortgage must include portability feature
Important: Not all mortgages are portable. Some lower-rate mortgages sacrifice portability.
Blend-and-Extend Options
If you need more money for the new home:
Port + Increase
- Keep old rate on existing balance
- New rate on the increased amount
- Two rate components
Blended Rate
- Average of old and new rates on total amount
- Single rate, simpler payment
- May or may not save you money—do the math
Full Refinance
- Break existing mortgage, pay penalty
- New rate on everything
- Sometimes makes sense if rates have dropped significantly
Portability Limitations
Be aware:
- Not all mortgages are portable (check before signing)
- Timing is strict (usually 30-90 days)
- May lose portability with certain changes (like increasing amortization)
- Must requalify under current lending rules
FAQ
Q: Can I port to a smaller mortgage?
A: Tricky. Many lenders only allow porting to equal or larger mortgages. Reducing may trigger penalties.
Q: What if there's a gap between selling and buying?
A: Some lenders allow a short "bridge" period. Others require simultaneous transactions.
Q: Is porting always better than breaking?
A: Not necessarily. If rates have dropped significantly, paying the penalty might save more long-term.
Q: Can I switch lenders and avoid penalties?
A: Sometimes. Some lenders will pay your discharge fee to win your business.
What's Next
Let us analyze your situation and determine whether porting, blending, or refinancing makes the most financial sense for your move.
Ready to Get Started?
Contact us today for personalized mortgage advice and competitive rates.
