Mortgage Porting - What is Mortgage Porting & How Does It Affect My Mortgage?

Alex Leite
Sep 25
2 min read

Mortgage porting allows you to bring your current mortgage's terms and conditions to your new home.

The Challenge with Mortgages Today

In a market where interest rates are constantly changing, the thought of giving up a low rate you locked in a while ago can be stressful. If you’re considering selling your current home and buying a new one, you might feel trapped by your existing mortgage contract. That's where mortgage porting comes into play.

What is Mortgage Porting?

Mortgage porting is essentially the process of transferring your current mortgage from your old property to your new one. This can be useful because it allows you to avoid breaking your existing contract and paying a large pre-payment penalty. It's an especially powerful tool if you want to hold on to a great interest rate you secured when rates were lower.

Is Porting Always the Right Move?

While it sounds like a perfect solution, porting isn't always the best choice. There are a few key factors to consider:

You'll Need to Re-Qualify: You must still qualify for the mortgage on your new property, and not all lenders allow porting.
It Can Get Complicated: If the mortgage on your new home needs to be larger than your old one, you'll have to "blend" the new, higher rate with your existing one. This could result in higher overall interest costs.
Penalties on a Smaller Mortgage: Even if your new mortgage is smaller, you might still face a penalty on the difference.

The Key Takeaway For Mortgage Porting

Mortgage porting is a powerful tool you should always explore if you're selling and buying a new home soon. It has the potential to save you from paying pre-payment penalties and losing your favorable interest rate, which could save you thousands of dollars and a whole lot of stress in the long run.

If you're worried about losing your interest rate when you move to a new home, feel free to email me at alex@triedandtruemortgages.ca. I’d be happy to chat about your options and plans.

TL;DR:

Mortgage porting lets you transfer your existing mortgage to a new property, avoiding penalties and keeping your low interest rate.
This can save you thousands of dollars, especially in a market with rising interest rates.
However, it's not always the right move, as you'll have to re-qualify, and it can become complicated if your new mortgage is a different size.