Mortgage Portability

What is Mortgage Portability?

Mortgage portability is a feature that allows homeowners to transfer their existing mortgage to a new property without incurring prepayment penalties or renegotiating rates.

Why Mortgage Portability Matters in Real Estate

In Canadian real estate, mortgage portability helps homeowners retain favorable mortgage terms when moving to a new home. This is especially useful when interest rates have increased since the original mortgage was signed.

• Avoids early termination fees
• Maintains current interest rate and mortgage term
• May simplify the financing process on a new purchase

Most lenders offer portability for fixed-rate mortgages, but terms vary. Some allow partial porting (adding new funds to the existing mortgage), while others require the new home to close within a specific timeframe (usually 30–120 days).

• Eligibility requirements
• Applicable fees
• Time limits and new home criteria

Understanding mortgage portability allows homeowners to move with less financial disruption and preserves favorable loan terms in changing markets.

Example of Mortgage Portability

A homeowner sells their current home and uses mortgage portability to carry over their 2.8% rate to a new property, avoiding higher current market rates.

Key Takeaways

• Lets you transfer your mortgage to a new home.
• Avoids rate hikes and prepayment fees.
• May require lender approval and timing alignment.
• Common in fixed-rate mortgages.
• Helps maintain affordability when relocating.

Related Terms

• Mortgage Renewal
• Fixed Rate Mortgage
• Mortgage Term
• Prepayment Penalty
• Bridge Financing