TRENDING: After Two Years, Canada's Rental Market Is Turning A Corner

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

More For You

3-Bed Georgian Bay Getaway Is A Charming High-Summer Escape

3-Bed Georgian Bay Getaway Is A Charming High-Summer Escape

realtor.ca

If the recent heat has had you dreaming of blue water and a place to escape to, 349 Cedar Avenue might be it.

Set on Georgian Bay in Meaford, this waterfront property comes with a coveted double lot, endless water views, and an asking price of $1,299,000.

Keep Reading Show less

Hale Muskoka Is Going All-Season With Multi-Pronged Expansion

Hale Muskoka Is Going All-Season With Multi-Pronged Expansion
Hale Muskoka at 1160 Bethune Drive North/Hale Corporation

On any given weekend from summer through early fall, Hale Muskoka has something unique to do, eat, and see. You might find yourself building a charcuterie board under the watch of Michelin-recognized chefs, grabbing a bite from a food truck to enjoy at the fireside lounge, or perusing the open-air market with live music as your soundtrack. And that’s only a small taste of what Hale currently is — and what Founder Eric Abugov wants it to be.

“It's built for you to experience,” says Abugov, a development sector veteran who soft-launched the market and events hub with his wife last summer. Today, locals, cottagers, and tourists can flock to their five-acre farm in Gravenhurst, home to a mix of food and retail vendors, a weekly open-air market, and a revolving door of events and activities. More than that, Hale offers the benefits of a “third space” — something Abugov and his wife felt was missing after moving to the area post-pandemic.

Keep Reading Show less

GTA Low-Rise Sales Outpace Historic Average For Third Straight Month

GTA Low-Rise Sales Outpace Historic Average For Third Straight Month

Low-rise new home sales in the Greater Toronto Area outperformed their historic average for a third consecutive month in June, even as benchmark prices kept sliding, according to the latest figures from the Building Industry and Land Development Association (BILD).

There were 1,175 total new home sales in June — up significantly from the record low set in June 2025, but still 52% below the 10-year average of 2,456 units, according to Altus Group, BILD's official source for new home market intelligence.

Keep Reading Show less

Canadian Home Prices Stopped Falling In June (And Buyers Were Already Moving)

Canadian Home Prices Stopped Falling In June (And Buyers Were Already Moving)
Shutterstock

Canadian home prices did something unremarkable in June: nothing.

The National Composite MLS Home Price Index was unchanged from May, according to the Canadian Real Estate Association's July 15 release. That flat reading ended a monthly decline that had run since January 2025.

Keep Reading Show less

Bank Of Canada Holds Interest Rate At 2.25% In July

Bank Of Canada Holds Interest Rate At 2.25% In July
Bank of Canada at 234 Wellington Street in Ottawa

On July 15, the Bank of Canada held its overnight rate at 2.25%, pointing to early signs of a broadening economic recovery.

Policymakers say the economy is starting to turn a corner after a rough stretch shaped by tariffs, elevated uncertainty, and slower population growth — the labour market has stayed soft throughout, with unemployment at 6.5% in June, part of a range that's held since late 2024.

Keep Reading Show less
TRENDING: Bank Of Canada Holds Interest Rate At 2.25% In July

In Canada's West, This Developer Is Building More Than Houses

In Canada's West, This Developer Is Building More Than Houses

Carrington, Calgary (Mattamy Homes)

There's a version of new home construction that most buyers know well: a patchwork of builders, a streetscape that never quite coheres, a construction zone that lingers years after move-in.

Mattamy Homes has spent decades building something different. And in Calgary and Airdrie, that difference is on full display across four communities where the builder controls every stage of development, from land through to the homes, parks, and pathways that help define daily life.

Keep Reading Show less

Mixed-Use 31-Storey Tower Proposed Near Future 152nd Street Station In Surrey

Mixed-Use 31-Storey Tower Proposed Near Future 152nd Street Station In Surrey

New development proposals continue to pop up along the Fraser Highway corridor, as the Surrey-Langley SkyTrain currently under construction is expected to bring forth waves of new development.

On Monday, Surrey City Council considered a new rezoning application submitted by 1098261 BC Ltd. for a land assembly consisting of 15284 and 15296 Fleetwood Drive, located near the intersection of Fraser Highway and Fleetwood Way.

Keep Reading Show less

Minto Pivots To Purpose-Built Rental For Five-Tower Mimico Proposal

Minto Pivots To Purpose-Built Rental For Five-Tower Mimico Proposal

Rendering of Grand Park Village in Mimico/Wallman Architects

It’s been around a decade since plans were put in motion for Grand Park Village: a multi-block, mixed-use community proposed for 2 and 10 Audley Street and 29, 31, 39, 59, and 71 Portland Street. The series of addresses are a five-minute walk from Mimico GO, which has drawn plenty of development focus in recent years. (Think: Grand Central Mimico, which was at one point on track to be Ontario’s first transit-oriented community.)

The most recent iteration of the plans come from Minto Communities and call for 42-, 54-, 52-, 39-, and 34-storey towers that would sit in a triangular cluster around an interior courtyard, the GO Transit Rail Corridor running past the south side of the site. True to its name, the community is set to be a contemporary urban village that’s not only a hub for residents, but draws in the public with new retail, daycare, roads, and parkland dedication occupying around 10% of the site.

Keep Reading Show less
Privacy Policy About Us Terms of Use Advertise with Us Jobs Contact Us RSS Feed
All rights reserved SiteMedia © 2026.