What Is a Portable Mortgage?
A portable mortgage allows you to transfer your existing mortgage — including your current interest rate and remaining term — from your old property to a new one when you move. This is especially valuable when you locked in at a low rate and current rates are higher.
Portability is a feature, not a guaranteed right — it must be specified in your mortgage contract and the lender must approve the new property and your continued qualification.
Why Portability Matters in 2025
Many Canadian homeowners locked in 5-year fixed rates in 2020–2022 at rates of 1.8%–3.2%. If they move before their term ends, portability allows them to keep that rate on the ported amount rather than pay a large IRD penalty and refinance at today's higher rates of 4.5%+.
How Mortgage Portability Works
- You sell your current home and purchase a new one
- You apply to port the mortgage to the new property
- The lender re-qualifies you at the stress test rate
- The new property is appraised
- If the new home costs less, you port the reduced amount and pay penalty on the difference
- If the new home costs more, you blend and increase (see below)
- Closing dates of both properties must typically overlap within 30–90 days
Conditions Required for Portability
- The new property must be in the same province (some lenders restrict to same region)
- You must qualify under current stress test rules
- The property must be an acceptable type (single-family, condo, etc.)
- You must have simultaneous closing dates within the lender's window (typically 30–90 days)
- The lender must approve the new property value and type
Blend and Increase: When You Need More Mortgage
If your new home is more expensive and requires a larger mortgage than what you're porting, you'll need a "blend and increase." The lender blends your existing rate with the new rate for the additional amount borrowed. The result is one blended rate — somewhere between your old low rate and today's higher rate.
Example: You're porting $400,000 at 2.2%. You need $600,000 for the new home. The lender blends $400,000 at 2.2% + $200,000 at today's 5.1% into one rate of approximately 3.2% on $600,000.
Portable Mortgage Limitations
- Not all mortgages are portable — always check your terms
- Portability is not guaranteed — the lender must approve the transaction
- If the closing dates don't align, you may lose portability rights
- Bridge financing may be needed during the gap between closings
- Variable rate mortgages are generally portable, but their penalty is small anyway
Frequently Asked Questions
What if I can't find a new home within the portability window?
If you sell your home but can't close on a new one within the portability window (typically 30–90 days), you lose portability rights and must pay the prepayment penalty. Some lenders offer extensions — ask your lender about their bridge loan products or temporary rental provisions that preserve portability.
Is portability available across all provinces?
Most mortgages are portable within the province the property is in. Some lenders allow portability between provinces, but many restrict it to intra-provincial transfers. If you're moving from Ontario to BC, you may not be able to port — check with your specific lender.
Do I re-qualify for my mortgage when I port?
Yes. The lender re-qualifies you under current rules, including the stress test. If your income has decreased or your debts have increased since you got the original mortgage, you may not qualify to port the same amount. This is especially important with tighter 2025 stress test rules.
What is a portable mortgage worth saving?
It depends on the rate differential and time remaining on your term. If you have 3 years left at 2.0% and the current rate is 5.0%, the savings on $400,000 over 3 years is approximately $36,000 in interest. Compare this to the IRD penalty you'd pay to break — portability is almost always preferable when the numbers work out.
Can I port a mortgage on a rental property in Canada?
Portability depends on your lender and the specific mortgage terms — it's not restricted to owner-occupied properties. However, investment property mortgages may have different portability rules than residential mortgages. Confirm the terms in your specific mortgage agreement and with your lender.