Moving to a New Home? Keep Your Mortgage Rate and Terms With Porting
Moving does not always mean giving up a favourable mortgage rate or paying a large penalty to break your contract. If your mortgage is portable, you may be able to take it with you to your next home.
Mortgage Porting Solutions for Kingston & Eastern Ontario Homeowners
Mortgage porting allows you to transfer your existing mortgage balance, interest rate and remaining term from your current property to a new one. Instead of breaking your mortgage and arranging new financing, you may be able to continue with your existing mortgage.
This can be especially valuable when you have a good rate locked in and want to avoid a prepayment penalty when selling your home. However, mortgage porting in Canada is not automatically the least expensive choice. Depending on what your current lender allows, it may be worth comparing a straight port with breaking the mortgage, using a blended mortgage, or choosing a blend-and-extend mortgage.
As part of the planning process, we can review the actual costs together before you decide. This includes reviewing your current mortgage contract, confirming whether it is portable and determining how the financing could be structured for your move. If the new home costs more, we can also explore options for adding the extra funds you need.
Here’s what we can review together:
- Review your current mortgage contract to confirm it is portable
- Transfer your existing rate and remaining term to your new home
- Blend your current rate with the rate on additional funds when you need to borrow more
- Explore a blend-and-extend structure when available and appropriate
- Coordinate the timing between selling your current home and closing on the new one
- Compare porting with breaking and refinancing to determine which may cost less
- Explain potential mortgage penalties, legal costs and lender fees
- Provide guidance when the new property or mortgage amount does not fit your lender’s standard porting rules
If you are wondering whether you can port your mortgage in Ontario or keep your mortgage rate when moving, it is best to review your contract before listing your current home.
Not All Mortgages Port the Same Way; Here’s What to Check First
Your Lender’s Rules and Deadlines Matter
Porting rules vary between lenders and mortgage products. Some mortgages cannot be ported, and most lenders require the sale of your existing property and purchase of the new one to close within a specific timeframe of each other. Each lender sets its own porting and blending guidelines, so missing the required window could mean losing the option or paying a penalty.
Comparing the Available Mortgage Options
A portable mortgage in Canada can help you keep a favourable rate, but the numbers still need to be compared. Depending on what your existing lender allows, there may be three additional options to consider: Break the Mortgage: Pay the applicable penalty and arrange a new mortgage with a new rate, term and amortization. Blended Mortgage: Blend your current rate and mortgage balance with a new rate on the additional funds you need. Blend and Extend Mortgage: Blend your current mortgage balance into a new rate, term and amortization. If your new home costs less, a penalty could also apply to the portion of the mortgage balance you no longer need.
Comparing the Complete Cost of Each Option
We can work through the available options by reviewing your mortgage documents, confirming the lender’s porting and blending requirements and estimating the cost of each structure. Your new borrowing needs, available rates, closing costs and future plans can all be considered before choosing a path.
Local Guidance for Your Next Move
Homeowners in Amherstview, Kingston, Napanee, Brockville, Cornwall and across Eastern Ontario can receive guidance before they sell and buy. Meetings are available virtually by phone or video, making it easier to plan your financing wherever you are moving within the region. The goal is to make sure moving with your mortgage in Ontario does not become more expensive or stressful than it needs to be.
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Got Questions About Mortgage Porting?
FAQ
Porting a mortgage means transferring your existing mortgage balance, interest rate and remaining term from the home you are selling to the home you are purchasing. You remain with your current lender and must meet its approval requirements for both the mortgage and the new property. Porting may help you keep a favourable rate and avoid some or all of the penalty that could apply if you broke the mortgage early.
No. Portability depends on your mortgage product, contract and lender. We can review the documents together and confirm the rules before you make plans to move.
The timeline varies by lender and may be quite short. Most lenders require your sale and purchase closing dates to fall within a specific timeframe of each other, and each lender sets its own guidelines. It is important to confirm the deadline early.
You may be able to port your existing mortgage and borrow additional funds at the lender’s current rate. The two rates may be combined into one blended rate while your remaining term and amortization stay the same. A blend-and-extend option with a new term and amortization may also be available.
It can be, particularly if your existing rate is lower and breaking the mortgage would create a substantial penalty. However, the best value may come from porting, breaking the mortgage, using a blended mortgage, or choosing a blend-and-extend mortgage. Comparing the penalty, rates, payments, term, amortization and total borrowing costs can help clarify which option makes the most sense.
Usually, no. Porting generally means moving your existing mortgage to a new property while staying with the same lender. Moving to another lender normally requires paying out the current mortgage, which may result in a penalty if you are still within your term.
You may need to break the mortgage and arrange a new mortgage with a new rate, term and amortization. Depending on your existing lender’s guidelines, a blended mortgage or blend-and-extend mortgage may also be available. We can compare the permitted options while accounting for the penalty, fees, monthly payments and potential long-term costs.
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