WHAT IS PORTING A MORTGAGE?

Porting a mortgage allows homeowners to move their existing mortgage — and its interest rate — from one property to another. This can be extremely valuable when you’re locked into a great rate or facing a large penalty for breaking a fixed-rate mortgage early.

Here’s how mortgage portability works and when it can benefit you 👇

1️⃣ Porting vs. transferring — what’s the difference?

A transfer moves your mortgage to a new lender.

✔️ new lender, same balance

✔️ often used to access better rates

✔️ usually done at renewal

Porting keeps your lender, but applies your current mortgage to a new property instead.

2️⃣ Not every lender or property qualifies for portability

Porting is only available if your lender allows it.

✔️ some lenders offer full portability

✔️ others have strict conditions

✔️ certain properties may not qualify

Your lender must approve both you and the new property before the mortgage can be moved.

3️⃣ You can only port the remaining balance — not borrow extra

Porting typically applies only to your existing mortgage amount.

✔️ current balance can be moved

✔️ any extra funds require full re-qualification

✔️ additional amount becomes a blended rate

If you don’t want to blend and extend, you must cover the difference from your own savings.

4️⃣ Porting can help avoid major pre-payment penalties

Homeowners in fixed-rate mortgages may face large penalties for breaking the term early.

✔️ porting avoids triggering the penalty

✔️ keeps your original rate intact

✔️ allows a smoother move between homes

This can save thousands, especially with big-bank penalty calculations.

5️⃣ When porting makes sense

Porting is most beneficial when:

✔️ your current rate is better than today’s rates

✔️ you're mid-term in a fixed mortgage

✔️ penalty costs are high

✔️ you’re moving within a short timeline

In volatile markets, keeping your existing rate can provide significant stability.

💬 Final Thought

Portability is an often-overlooked mortgage feature that can prevent unnecessary penalties and preserve a great rate when moving. Understanding whether your lender offers porting — and how blending works — ensures you make the most financially strategic move.

If you’d like a personalized review of your portability options, send The Frontline Mortgage Group a message anytime.