Can You Take Your Mortgage With You When You Move? What You Should Know About Porting in 2026

What Does It Mean to Port Your Mortgage?

Porting a mortgage means transferring your current mortgage — including your interest rate, balance, and term — to a new property when you move. It’s basically taking your loan with you. Instead of paying a penalty to break your existing mortgage and starting fresh, you keep your original deal intact.

This matters most when rates have climbed since you first locked in. If you secured a 3.5% rate two years ago and today’s rates sit at 5.2%, porting protects that lower rate. You’re not forced to refinance at today’s higher cost.

Not every mortgage is portable, though. It’s an optional feature some lenders build into the contract. If your agreement doesn’t mention portability, you’ll face a penalty to break the loan when you sell.

How Does Mortgage Portability Work in Canada?

Most portable mortgages are fixed-rate. When you move, you transfer the existing balance to your new home at the same rate. If your new place costs more, you’ll need to borrow extra — lenders blend your old rate with today’s rate on the additional amount.

Here’s an example. You owe $300,000 at 3.8% with two years left on your term. Your new home costs $500,000. You port the $300,000 at 3.8% and borrow $200,000 at the current 5.0% rate. Your blended rate lands somewhere around 4.3%.

Variable-rate mortgages work differently. Porting isn’t always an option. But breaking a variable mortgage usually triggers a three-month interest penalty — typically $2,000 to $4,000. That’s way less painful than breaking a fixed mortgage, which can hit $15,000 or more depending on how much time remains.

Some lenders waive the penalty altogether if you take a new mortgage with them. You don’t even need to port. You just close the old loan, pay the fee, then get reimbursed when the new mortgage funds. Always ask your broker if this applies.

What Are the Rules Around Porting a Mortgage?

Lenders set strict conditions. The biggest one is timing. Some require you to sell your old home and buy your new one on the exact same day. Others give you a week. A few allow up to three months.

That timeline can make or break a deal. If you sell in January but don’t find a new place until April, and your lender only gives you 30 days, you’re out of luck. You’ll pay the penalty.

Term changes are another sticking point. Some lenders won’t let you adjust your term when you port. Others force you into a longer term as a condition of approval. If you had three years left and wanted to renew for five, they might make you commit to a full seven-year term instead.

And portability doesn’t mean automatic approval. You still need to qualify for the new mortgage amount. If your income dropped or your credit score fell, the lender can deny the port. You’d then face the penalty to discharge the old mortgage.

When Does Porting Actually Make Sense?

Porting works best when your current rate is lower than today’s market rate. If you locked in at 3.2% and rates are now 5.0%, porting saves you money. You’re not giving up that discount.

It also makes sense when breaking your mortgage would cost more than the benefit of a new rate. According to the CMHC, the average penalty to break a fixed mortgage in Canada is around $10,000. If porting avoids that cost and keeps your rate competitive, it’s worth doing.

But there are cases where paying the penalty is smarter. Let’s say you have a 5.5% rate with four years left. Today’s rates are 4.0%. Even after paying a $12,000 penalty, you’d save $8,000 over those four years by switching to the lower rate. The math matters.

A good mortgage broker runs both scenarios. They’ll tell you whether porting or breaking makes more financial sense based on your numbers.

What If You’re Buying a More Expensive Home?

Most people who port are upsizing. You’re moving from a $400,000 condo to a $650,000 house. The lender ports your original balance and lends you the difference at today’s rate.

The blended rate depends on how much extra you’re borrowing. If you’re adding $50,000 to a $400,000 balance, the new rate barely moves. But if you’re doubling your mortgage, the blended rate skews closer to today’s higher rate.

You’ll also need to re-qualify based on the new loan amount. That means passing the stress test at the higher borrowing level. If your income hasn’t grown much, you might not qualify for the full amount you need.

Can You Port Your Mortgage and Change Lenders?

No. Porting only works if you stay with the same lender. If you want to switch banks, you have to break your mortgage and pay the penalty.

Some borrowers think they can port to a better lender. That’s not how it works. The portability clause is tied to your existing lender’s agreement. Moving to a different lender means discharging the old mortgage entirely.

That said, some lenders offer penalty reimbursement programs. They’ll cover your discharge fee if you take a new mortgage with them. It’s not true portability, but it achieves the same result — avoiding out-of-pocket penalty costs.

What Happens If You Can’t Port on Time?

If you miss your lender’s portability window, the option expires. You’ll pay the penalty to break the mortgage. There’s no extension or grace period in most cases.

This happens more often than you’d think. You sell your home expecting to close on a new one within 30 days, but the purchase falls through. Or you can’t find a place you want. Or financing on the new property gets delayed.

One workaround is a bridge loan. You can use short-term financing to cover the gap between selling and buying. But bridge loans cost money. You’re paying interest on borrowed funds while you wait.

Another option is negotiating with your lender. Some will extend the portability window if you’re close to closing on a new purchase. You’ll need proof — a signed purchase agreement, for example. They won’t extend indefinitely, though.

Should You Choose a Portable Mortgage Next Time?

If you’re planning to move within the next five years, portability is worth having. It gives you flexibility. You’re not locked into one property for the entire term.

But don’t choose a mortgage solely because it’s portable. Rate and prepayment options matter more. A portable mortgage at 5.2% is worse than a non-portable one at 4.7% with flexible penalties.

Ask your broker to compare total cost, not just features. Sometimes paying a penalty to switch lenders costs less over the life of the loan than staying with a higher-rate portable mortgage.

Frequently Asked Questions

What does porting a mortgage mean?

Porting a mortgage means transferring your existing mortgage — including your interest rate, balance, and remaining term — from your current home to a new property when you move. It allows you to avoid breaking your mortgage and paying a penalty, which can be substantial on fixed-rate loans.

Can you port a variable-rate mortgage in Canada?

Most variable-rate mortgages in Canada are not portable. However, breaking a variable mortgage typically only costs a three-month interest penalty (usually $2,000 to $4,000), which is significantly lower than the penalty for breaking a fixed-rate mortgage mid-term.

How long do you have to port your mortgage after selling your home?

The portability window varies by lender. Some require the sale and purchase to close on the same day, while others allow 7 days, 30 days, or up to 90 days. If you miss your lender’s deadline, the portability option expires and you’ll pay a discharge penalty.

Do you need to requalify when porting a mortgage?

Yes. Even if your mortgage is portable, you must requalify based on the new property’s purchase price and your current financial situation. If your income has dropped or your credit score has declined since you originally qualified, the lender can deny the port.

Is it always better to port your mortgage instead of breaking it?

Not always. If current mortgage rates are significantly lower than your existing rate, paying the penalty to break and refinance at a lower rate can save you more money over the remaining term than porting your higher-rate mortgage. A mortgage broker can run both scenarios to show which option costs less.