What porting actually does
A portable mortgage gives you the right to transfer the existing mortgage — the same rate, the same remaining term, the same lender — to a new property when you move. The mechanics:
- You sell your current home
- You buy a new home
- Instead of paying off the old mortgage and applying for a new one, you "port" the existing mortgage onto the new property
- The lender re-registers the security on the new title
- No prepayment penalty, no new mortgage origination
The key benefit: you keep your existing (often lower) rate even though rates may have risen. On a 2.99% mortgage signed in 2021 with 2 years left, porting into a new home today saves you the 5-6%+ you'd pay on a brand-new mortgage.
How "porting + new money" works
Most moves involve buying a more expensive home, so you need more mortgage. Lenders handle this by blending the rates:
- Existing balance stays at the existing rate
- New money is added at the current new-money rate
- The combined balance carries a weighted-average blended rate
Worked example. You're moving:
- Old home: sold for $750,000; existing mortgage balance $420,000 at 3.49% with 3 years remaining
- New home: $900,000 purchase; you need $580,000 total mortgage ($420k port + $160k new money)
- New money rate today: 4.99%
Blended rate calculation:
- ($420,000 × 3.49% + $160,000 × 4.99%) ÷ $580,000 = 3.90%
That blend saves you 1.09 percentage points across the full $580,000 vs taking a fresh new mortgage at 4.99%. Annual interest savings: ~$6,300. See blended rate calculator for your specific numbers.
Two flavours of port
Port and extend: blend the rates AND reset the term back to (e.g.) a fresh 5-year. Most common at major banks.
Port and match: blend the rates but keep the remaining term unchanged. Less common — banks prefer to lock you in for another full term — but available at some monolines.
The choice affects how rate-cycle risk maps onto your finances. Port-and-extend gives you a longer rate horizon; port-and-match keeps your renewal calendar aligned with the original.
Timing — the same-day requirement
Most lenders require the sale of your existing home and the purchase of the new home to close within 30-120 days of each other, depending on lender policy:
- Big-5 banks: typically 30 days max
- Monolines: typically 60-120 days
- Credit unions: varies, often 30-90 days
Many borrowers structure the sale and purchase to close on the same day to avoid bridge financing. If the timing gap is larger than your lender allows, you can sometimes use bridge financing to span the gap — see bridge loan calculator.
When porting is the right move
Port when:
- Your existing rate is 50+ bps below current new-money rates
- You have 2+ years remaining on the term (less than that and the savings don't accumulate enough)
- You qualify for the new (potentially larger) mortgage under current stress test rules
- Your new home meets the lender's standard property eligibility
When porting doesn't pay off
Skip porting when:
- Your existing rate is at or above current rates → just take a new mortgage at today's rates
- You have <12 months left on the term → savings won't cover the porting hassle
- The new property doesn't qualify (rural, mobile home, unique structure) — many lenders restrict porting to standard residential
- You're moving to a much smaller home and don't need most of the existing mortgage — partial port-and-payoff sometimes triggers a partial penalty
- You're switching lenders for other reasons — porting locks you to the existing lender
What lenders check when porting
The port isn't automatic. The lender still underwrites:
- Re-qualification at current rates — even though you're keeping your old rate, the new mortgage size has to pass the stress test based on today's rate
- New property appraisal — meet the lender's value and condition standards
- Income re-verification — same as a fresh application
- Credit pull — confirms nothing has degraded
- New title insurance + legal work
If you don't re-qualify under current stress test rules, the lender may decline the port or limit the additional new money you can take.
What it costs
Porting fees and costs:
- Discharge fee on old property: $300-$600
- Re-registration fee on new property: $300-$700
- Legal fees (new property): $1,200-$2,500
- Appraisal: $400-$700
- Title insurance: $200-$500
Total typically $2,500-$5,000 — much cheaper than breaking the mortgage AND paying full refi closing costs.
Which Canadian mortgages are portable
Portable (usually):
- A-tier fixed and variable from major banks (RBC, TD, Scotia, BMO, CIBC)
- Monoline products (MCAP, First National, Merix)
- Most credit union mortgages
- Insured mortgages (CMHC, Sagen, Canada Guaranty)
Not portable (usually):
- Private mortgages
- B-lender alt-A products (some allow, most don't)
- Some specialty products (HELOC-based primary mortgages)
- Builder-financed mortgages
Conditionally portable:
- Some collateral-charge mortgages — porting is possible but requires re-registration
- Some readvanceable mortgages (like CIBC HCM or BMO Homeowner ReadiLine) — portability depends on product version
Confirm portability before you commit. If your existing mortgage is portable and you're contemplating a move within 2+ years of remaining term, it's a meaningful asset.
What to do next
- Pull your existing commitment letter — check for "portable" / "portability" language
- Estimate the value of porting: (existing rate − current rate) × balance × remaining years
- Talk to your lender (or broker) about port-and-blend feasibility on the specific new property
- Plan sale-purchase timing to meet the lender's port window
- Use blended rate calculator to model the new combined payment
Porting is one of the quiet wins in Canadian mortgage planning — it preserves a low rate through a move that would otherwise force you back into the current rate environment.