Porting a Mortgage to a New Home in Canada

Porting a mortgage means moving your existing mortgage — its rate, term, and balance — to a new home instead of paying a penalty to break it. In Canada, porting a mortgage is a standard feature on many closed mortgages, but every lender sets its own rules, deadlines, and fees, so confirm the details before you list your home.

What porting a mortgage actually does

When you port a mortgage, your lender keeps the same contract in place and simply switches the property that secures it. You keep your existing interest rate, your remaining term, and your payment schedule. Because you aren't breaking the contract, you normally avoid the prepayment penalty — the interest rate differential (IRD) or three months' interest that a closed mortgage charges when you pay it off early.

That distinction matters most when rates have risen since you signed. If your fixed rate sits well below what a new mortgage would cost today, carrying it to your next home can be worth real money. If rates have fallen, the math flips — see the comparison below.

Porting is not automatic. Your lender still has to approve the new property, and that property must meet its lending criteria. Most lenders also require the new home to be your principal residence and to be located in Canada.

How porting a mortgage works, step by step

The sequence usually looks like this:

1. Read your mortgage documents first. Check whether your contract allows porting, what window applies, and which fees are listed. Call your lender before you list your home.
2. Confirm the timing window. Most lenders allow porting only when the sale and purchase close within a set period — commonly 30 to 120 days, though some are more flexible. Ask what happens if your dates don't line up.
3. Submit the new property details. Your lender will review the address, the purchase price, and your overall file.
4. Re-qualify if you need more money. If the new mortgage is larger than your existing balance, the extra funds ("new money") are typically lent at current rates and qualified under today's rules.
5. Arrange an appraisal. The lender usually needs to confirm the new home's value.
6. Close both transactions. The lender registers a mortgage on the new home and discharges the old one, often on the same day.

What happens if you need to borrow more

Many lenders "blend" the deal: your existing balance keeps its original rate and term, and the additional amount is added as a second component at today's rate with its own amortization. Your payment becomes a blend of the two. Ask for the blended rate and payment in writing before you commit.

Porting vs breaking your mortgage and starting fresh

Run your own numbers with the mortgage penalty calculator before deciding. The penalty you would pay to leave is the benchmark that porting has to beat.

Costs you should expect when you port

• Porting or assumption fee. Some lenders charge one; others waive it. Confirm in writing.
• Appraisal fee for the new property, if the lender requires one.
• Legal and title costs to register the new mortgage and discharge the old one.
• Land transfer tax on the new purchase, which is provincial and, in some cities, municipal. See land transfer tax in Canada. First-time buyers may qualify for rebates — check your province.
• Default insurance top-up. If your loan-to-value rises because you're adding money, your lender may need to insure the increase.

Ask your lender for a written cost estimate. It is the fastest way to compare porting against a fresh mortgage.

Qualifying, the stress test, and default insurance

Porting the same balance to a similarly priced home is often a lighter process than applying from scratch. But when you borrow more, extend your amortization, or add a borrower, expect the lender to underwrite the new money the way it would any application.

That means the federal mortgage stress test may apply. Federally regulated lenders qualify you at the higher of your contract rate plus two percentage points or the published qualifying-rate floor. Confirm the current floor with OSFI or your lender. Your ratios are checked too: GDS (gross debt service) and TDS (total debt service). The stress test guide walks through how that works.

If your down payment on the new home is under 20%, CMHC mortgage default insurance or equivalent private coverage is generally required. Insurance is often portable between homes, but you must apply and be approved — confirm with your lender.

Timing, bridge financing, and closing gaps

The most common porting problem is a mismatch between your sale date and your purchase date. If you buy before you sell, you may need bridge financing — short-term money that covers the gap. Bridge loans carry their own rate and fees, so ask early.

Watch the port window carefully. Some lenders require both transactions to close within days of each other; others allow months. If you fall outside the window, you may lose the right to port and be treated as though you broke the mortgage, which can mean a penalty.

If your sale falls through, tell your lender immediately. Porting clauses usually assume the sale completes.

When porting may not be your best move

Porting preserves your rate and term, but it also locks you in. If rates have dropped below your existing rate, breaking the mortgage and taking a new one may cost less overall once the penalty is factored in. Use the refinance break-even calculator before you decide.

Porting also keeps you with your current lender. If your renewal is close, you may prefer to shop the market instead — see how to switch mortgage lenders to compare what else is available.

If you are a first-time buyer moving into your first home, porting does not apply — but the RRSP Home Buyers' Plan and the First Home Savings Account (FHSA) might. Speak with your lender about what you qualify for.