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Mortgage Portability: Taking Your Mortgage When You Move

Understand how mortgage portability works in Canada and when it makes financial sense to transfer your mortgage to a new property

What Is Mortgage Portability?

Mortgage portability allows you to transfer your existing mortgage—including its interest rate, terms, and remaining balance—to a new property, without paying a prepayment penalty or breaking your current contract.

This option is especially valuable in a rising rate environment, as it lets you keep a lower rate while buying a new home.

Not all mortgages are portable, and even among those that are, conditions apply—especially around timelines, property type, and lender approval.

Key Features of a Portable Mortgage

  • Transfer of rate and term: You retain your current mortgage’s rate and maturity.

  • No early payout penalty: You can avoid prepayment charges that typically apply when breaking a mortgage.

  • Streamlined application: You may undergo simplified approval, especially with the same lender.

  • Top-up option: If your new home costs more, you may be able to blend your current rate with a new one (called “blend and extend”).

  • Lender discretion: Your lender must approve the new property and borrower profile; portability is not automatic.

When Portability Makes Sense

Portability can be a smart move when:

  • You’re selling and buying within a short timeframe (usually 90–120 days).

  • Your existing mortgage rate is lower than current market rates.

  • You want to avoid prepayment penalties.

  • Your new home falls within your lender's lending guidelines.

  • You’re planning to move before your mortgage term ends.

When It Might Not Work

Even with a portable mortgage, it may not be suitable or approved if:

  • You’re moving to a different province or property type that your lender doesn’t support.

  • You’re downsizing, and the mortgage balance is too large for the new home.

  • The timing between transactions exceeds your lender’s portability window.

  • Your financial situation has changed, and you no longer qualify under your lender’s current underwriting rules

Important: Portability isn’t automatic. Even if your mortgage is labeled portable, the lender will reassess your finances and the new property.

Blend and Extend: Adding to a Portable Mortgage

If your new home is more expensive and you need a larger mortgage, some lenders allow you to:

  • “Blend” your existing rate with the new rate for the additional funds.

  • “Extend” your term to create a single, combined mortgage.

This can help you avoid breaking your term while accommodating a higher purchase price—but it’s important to compare the blended rate with new-market offers.

Portability vs. Breaking Your Mortgage

Scenario Portable Mortgage Breaking Your Mortgage
Prepayment Penalty None (if conditions are met) Often thousands in fees
Interest Rate Keeps existing rate New market rate (could be higher/lower)
Credit Re-Qualification Required Required
Flexibility Somewhat limited by timeline Greater control on lender and terms
Suitability Best in rising rate environments May be preferable if rates drop
 How Optimize Helps You Navigate Portability
 
 At Optimize, we help you:

  • Determine if your mortgage is eligible and advantageous to port.

  • Assess whether blending or breaking offers greater long-term value.

  • Compare penalty savings vs. rate differences.

  • Manage the timeline, approvals, and documentation for a smooth transition.

  • Coordinate with real estate and legal professionals during your move.