Porting A Mortgage

Explore what porting a mortgage means in Canadian real estate, how it works, and how it can help homeowners save on penalties and retain low interest rates.

Porting A Mortgage

May 22, 2025


What is Porting a Mortgage?

Porting a mortgage is the process of transferring an existing mortgage, including its interest rate and terms, from one property to another when a homeowner moves.

Why Porting a Mortgage Matters in Real Estate

In Canada, many mortgages are portable, meaning they can be moved from one property to another without incurring early prepayment penalties. This is particularly beneficial when interest rates are lower on the original mortgage than current market rates.

To port a mortgage, the homeowner must:
  • Sell their existing property
  • Purchase a new property within a specified timeframe
  • Meet lender approval for the new home and mortgage amount
Porting can be straightforward for a mortgage of equal or lesser value. If the new home costs more, the borrower may need a ‘blend and extend’ option — combining the old rate with a new rate for the extra amount.

Not all mortgages are portable, and rules vary by lender. Buyers should confirm porting eligibility before making relocation decisions. Timing is crucial, as porting typically must be completed within 30 to 120 days of the original home’s sale.
Understanding mortgage portability allows homeowners to retain favourable rates, reduce penalties, and maintain continuity when upgrading or relocating.

Example of Porting a Mortgage in Action

A homeowner sells their condo in Calgary and buys a detached home. They port their 2.9% mortgage rate to the new property, avoiding higher market rates and penalty fees.

Key Takeaways

  • Allows mortgage transfer between properties.
  • Helps avoid prepayment penalties.
  • May require requalification and timing alignment.
  • Beneficial when current rates are higher than original.
  • Must confirm with lender before planning to port.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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