Updated: April 2025  |  bremo.io financial guides

Mortgage Portability Canada: How to Move Your Mortgage

Mortgage portability is a feature that allows you to transfer your existing mortgage — including its interest rate, outstanding balance, and remaining term — from your current property to a new one when you move. This can be extremely valuable when your current rate is below today's market rates. Not all mortgages are portable, and the rules vary significantly by lender. Here is everything you need to know.

What Is Mortgage Portability?

When you sell your home and purchase a new one, you have three options for your existing mortgage:

1. Break the mortgage and get a new one at current rates (pay a prepayment penalty)
2. Port the mortgage — transfer the existing rate and terms to your new property (avoid the penalty)
3. Port and blend — transfer existing mortgage and add new funds at a blended rate

Portability allows you to carry your current rate to the new property, which is especially valuable if your rate is significantly below current market rates. For example, someone with a 2.89% fixed rate locked in during 2021 who wants to move in 2025 could port that rate to their new home rather than breaking and taking a new mortgage at 4.5–5%.

Is Your Mortgage Portable?

Most major Canadian bank mortgages are portable, but portability is not universal. Check your mortgage contract — there should be a specific portability clause. Monoline lenders typically do not offer portability (or offer it under strict conditions), which is one trade-off of their lower rates. Before signing any mortgage, if you think you might move during the term, confirm the portability provisions in writing.

Portability Requirements

Even if your mortgage is portable, several conditions must be met:

• You must be buying a new property at the same time you sell the old one — simultaneous (or nearly simultaneous) transactions
• Your closing dates must align within a specific window (varies by lender — sometimes as narrow as 30 days, sometimes up to 90 days)
• You must re-qualify for the mortgage on the new property (income, credit, stress test)
• The new property must be acceptable to the lender (residential, in Canada, meets appraisal standards)
• You are moving into the new property as your primary residence

The Closing Date Problem

One of the biggest practical challenges with portability is timing. Most lenders require the sale of your old home and purchase of your new home to close within a specific window. If your sale closes on one date and your purchase closes 60 days later, many lenders require the mortgage to be "broken" and re-established rather than ported. This is a significant limitation in practice — real estate timings rarely align perfectly.

Some lenders offer a "port and hold" feature where they hold your old rate for a period while you search for your new home — ask your lender about this option if you plan to sell before buying.

Porting When You Are Buying a More Expensive Property

This is the most common porting scenario: you are upgrading to a larger home that costs more than what you are selling. You port your existing mortgage balance at your current rate, and need to borrow additional funds for the price difference.

Lenders handle this through a "blend and extend" arrangement:

• The existing balance continues at your current rate for the remaining term
• The additional amount needed is at current market rate for a new term
• These are blended into a single weighted average rate over a matched term

Porting When You Are Buying a Less Expensive Property

If your new home costs less than what you sell, you are porting to a smaller mortgage. Most lenders allow this, but you must repay the difference between your existing balance and the new (smaller) mortgage. This partial repayment may trigger a prepayment penalty on the portion being eliminated. Check your mortgage agreement carefully — some lenders allow a portion to be paid down penalty-free at portability, while others charge the IRD on the reduced amount.

When Porting Makes Strong Financial Sense

Portability is most valuable when:

• Your existing rate is significantly below current market rates (1%+ difference)
• You have a substantial remaining term (2+ years) making the break penalty large
• The timing of your move aligns well with lender portability windows

In 2025, many Canadians who locked in sub-3% fixed rates in 2020–2021 still have terms running and moving would trigger enormous IRD penalties. For these borrowers, portability is not just valuable — it may be essential for affordability when upgrading to a larger home.

When Breaking Your Mortgage May Be Better Than Porting

Sometimes porting is available but not financially optimal:

• If your current rate is already at or above market rates, there is no benefit to preserving it
• If the blended rate from port + extend is not materially better than a fresh mortgage at current rates
• If lender timing restrictions make porting too logistically complex
• If you want to change lenders for other reasons (better HELOC, prepayment terms, etc.)

Always calculate the penalty vs benefit comparison. A mortgage broker can run these numbers for your specific situation.

CMHC Insurance and Portability

If you have an insured mortgage and port it to a new property, you can port the existing insurance as well in most cases. This avoids paying a new CMHC premium on the entire new mortgage balance. You may pay a small additional premium on the new funds only. This insurance portability is another significant cost saving on top of the rate benefit.

How to Execute a Mortgage Port

1. Notify your lender early (as soon as you know you are moving) — timing coordination is critical
2. Request a portability assessment — confirm the feature applies to your specific mortgage
3. Ensure closing date windows align
4. Re-qualify for the new property amount if increasing the mortgage
5. Work with your lawyer to coordinate the simultaneous title transfer and mortgage assignment

Most lenders have dedicated port application processes. Your mortgage broker (if you used one) should also be able to facilitate this.