Porting Your Mortgage Explained

Author: Boychuk Mortgage Group | | Categories: Mortgage Broker , Private Mortgages , Residential Mortgage

Blog by Boychuk Mortgage Group

If you currently own a house and are looking to move, you might wonder what happens to your mortgage when you sell it. Depending on the terms of your current home, you may be able to port it to your new home. This is sometimes referred to as transferring your mortgage, and it can be quite handy. Trusted mortgage broker Boychuk Mortgage Group wants to help you understand how porting your mortgage can be beneficial to you.

Porting your mortgage is when you take your existing mortgage and transfer it to another property. This allows you to keep the same mortgage terms with your existing lender. This can be beneficial for anyone who is purchasing a new property and selling their old one, especially if current interest rates are higher than when you negotiated your existing mortgage. Most people choose to port their mortgage if their existing interest rate is lower than the current rate in the market. This allows them to keep their lower interest rate instead of switching to a higher interest rate mortgage.

Most lenders enable porting and automatically include it in your mortgage agreement. However, there are times when porting isn’t allowed, and you’ll potentially lose your low-interest rate mortgage. If you can receive a lower mortgage interest rate than your existing mortgage, it makes more sense, not to port.

Mortgage porting qualifications

It really comes down to the terms and conditions within your current mortgage contract. Many lenders allow you to port your mortgage, but not all do. You will most likely need to pay mortgage-breaking penalties when you transfer homes or find another porting alternative. Additionally, most variable-rate mortgages in Canada don’t allow you to port. You’ll need to switch to a fixed rate in advance or choose an alternative method. There are also some other scenarios that impact the mortgage portion process, such as upsizing or downsizing your home. If you’re upsizing your home, you will likely need to increase your mortgage amount. On the flip side, if you sell your home to move into a less expensive home, you get the option of paying off a remaining chunk of your mortgage, having extra money in your savings account, or a combination of both.

How to port your mortgage

If you’re interested in porting your mortgage, the first step is to talk to your mortgage broker in Canada. They will be able to tell you everything you need to know about porting and what the process looks like. Aside from this, there are a few other things you should consider. One is mortgage life insurance. If you currently have this type of insurance, it’s important to know that it doesn’t transfer with your mortgage. Next, as is the case with mortgage pre-approvals, your porting is usually only valid for thirty to hundred and thirty days. This means you must finalize your home sale and receive ownership of the next house before this period is over.

Finally, also consider the type of mortgage you have. As mentioned previously, if you have a variable rate mortgage, your mortgage may not be as easily portable.


Porting your mortgage is a great way to save money and simplify the home buying process. If it is your first mortgage, always try to negotiate a mortgage contract with a portability feature. This allows you to save fees and time if you ever want to move in the future. Also, it helps to keep in mind that while porting your mortgage can definitely work to your advantage, sometimes getting a new one makes more financial sense. Speaking to a mortgage broker about your options is wise since these professionals can shop on your behalf.

If you need help understanding how you can finance your home purchase and improvement projects, reach out to Boychuk Mortgage Group today! We are a dedicated and accredited mortgage brokerage in Burnaby, British Columbia. Given our expertise in the industry, we inform you about the various types of home purchase and improvement mortgages so that you can make a wise decision based on your unique situation.

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