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Blended Mortgage

Understand blended mortgages in Canadian real estate — what they are, when they’re used, and their advantages for borrowers.

Blended Mortgage

July 27, 2025


What is a Blended Mortgage?

A blended mortgage combines two different mortgage loans or interest rates into one, resulting in a new single loan with a blended interest rate.

Why Blended Mortgages Matter in Real Estate

In Canadian mortgage financing, blended mortgages help borrowers modify financing without full refinancing, often during porting or top-up situations.



Key features:
  • Mixes existing loan with new funds
  • Creates an average (blended) interest rate
  • May avoid penalties for breaking existing mortgage



Understanding blended mortgages helps homeowners manage changing financing needs.

Example of a Blended Mortgage in Action

The homeowner used a blended mortgage to combine their existing loan with additional funds for a home addition.

Key Takeaways

  • Combines old and new mortgage loans
  • Creates a blended interest rate
  • Useful for adding funds or porting
  • May reduce penalty costs
  • Supports flexible financing

Related Terms

Additional Terms

Back-End Ratio

The back-end ratio, or debt-to-income ratio, measures the percentage of a borrower’s gross monthly income spent on total monthly debt obligations,. more

Airspace Rights

Airspace rights are the legal rights to control, use, or sell the space above a parcel of land, separate from the ownership of the land itself.. more

Absorption Rate Analysis

Absorption rate analysis is the evaluation of how quickly available properties in a given market are being sold or leased during a specific time period.. more

Vacancy Rate

The vacancy rate is the percentage of all available rental units in a property or market that are unoccupied at a given time.. more

Sustainability

Sustainability in real estate refers to designing, constructing, and operating properties in ways that minimize environmental impact, support social. more

Soft Costs

Soft costs are the indirect expenses incurred in a construction project that are not directly tied to physical building materials or labour.. more

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