Four common portability scenarios
Straight port
The existing mortgage balance, rate, and contractual terms move to the replacement property, subject to the lender approving the borrower, property, timing, and transaction.
Port and increase
The borrower needs a larger mortgage for the new property. The existing portion may keep its rate while the additional amount receives current pricing, sometimes producing a blended structure.
Port and decrease
The borrower needs a smaller mortgage. The amount paid down may exceed available prepayment privileges and could create a partial prepayment charge.
Port not approved
A port may fail because of timing, property eligibility, income, credit, loan-to-value, documentation, or other lender requirements. The borrower may then need to break, discharge, refinance, or replace the mortgage.
Questions to ask before selling or buying
- Is this mortgage contract portable, and is portability available for my exact product?
- How many days are allowed between selling the current property and completing the new purchase?
- Must both transactions close on the same day?
- Will I need to requalify, and what income, credit, property, appraisal, or legal requirements apply?
- Can I port only part of the mortgage?
- What happens if the replacement property requires more borrowing?
- How will any additional borrowing be priced and documented?
- What happens if the replacement mortgage is smaller?
- Could a full or partial prepayment charge still apply?
- What fees, discharge steps, appraisal costs, legal costs, registration costs, or administration charges may apply?
- What happens if either closing date changes?
- Can the final portability conditions and cost estimate be provided in writing?
Why timing matters
Portability windows and closing requirements are lender-specific. A delayed sale, delayed purchase, changed property, or changed loan amount can affect eligibility. Ask for the permitted timing window and consequences of a missed deadline in writing before committing to either transaction.
Portability and prepayment charges
FCAC identifies porting as one possible way to avoid breaking a mortgage contract and obtaining a completely new one. It also cautions that a borrower may still face a prepayment charge when the new home costs less or the transferred mortgage is smaller. Request a written charge estimate for the exact proposed transaction rather than assuming the port eliminates it.
Primary consumer sources
Frequently asked questions
What is a portable mortgage in Canada?
A portable mortgage may allow a borrower who sells one home and buys another to transfer the existing mortgage balance, interest rate, and contractual terms to the new property. Eligibility and restrictions depend on the contract and lender approval.
Does porting a mortgage avoid every penalty?
Not necessarily. Porting may reduce or avoid a charge for breaking the mortgage, but a partial charge may still apply when the new mortgage is smaller, timing conditions are missed, or only part of the balance is transferred.
Do I have to requalify when porting?
A lender may require a new review of the borrower, replacement property, income, credit, loan amount, and documentation. A portable feature is not automatic approval for the new transaction.
What is port and increase?
Port and increase generally means moving the existing mortgage to the new property while borrowing an additional amount. The old and new portions may have different rates or be combined using a lender-specific blended calculation.
Can FairRate tell me whether my mortgage can be ported?
No. FairRate does not have access to your mortgage contract or lender file. Confirm eligibility, timing, pricing, approval requirements, fees, and possible penalties directly with the lender in writing.