Can I Move My Mortgage to Another Property?
Possibly. If your mortgage is portable and you meet the lender's requirements, you may be able to transfer the existing mortgage to a new property rather than paying it out and starting over.
← Back to Mortgage Strategy QuestionsA Portable Mortgage May Be Moved — but the Lender Still Has to Approve the Transaction.
Portability can allow you to transfer some or all of the existing mortgage terms to another property. That does not mean the transfer is automatic. You normally still need to qualify, and the lender needs to approve the new property as security for the mortgage.
Check Whether the Mortgage Is Portable
Your mortgage agreement determines whether portability is available and what conditions apply.
You Still Need to Qualify
The lender may reassess your income, credit, debts and overall application before approving the mortgage on the new property.
The New Property Must Be Approved
The lender needs to be satisfied with the value, type, location and marketability of the property being purchased.
Timing Matters
Porting rules can include specific timing requirements between the sale of the existing property and purchase of the new one.
Your Existing Terms Matter
The value of porting depends partly on the rate and terms you are preserving compared with the financing available today.
Get the Lender's Rules Before You Move
Confirm the portability provisions before listing, selling or committing to another property so you know exactly what the lender will allow.
You May Be Able to Port the Existing Mortgage and Add More Financing.
If the new property requires a larger mortgage, the lender may allow the existing mortgage to be transferred and additional funds to be added under the lender's current terms.
Depending on the lender and product, the old and new portions may be combined using a blended structure. The exact rate and terms need to be calculated for the specific transaction.
The lender may allow the current mortgage balance and applicable terms to move to the new property.
The extra amount required for the new purchase may be advanced at the lender's current pricing and terms.
Where available, the lender may combine the existing and new mortgage portions into a blended rate or structure.
Borrowing more means the lender needs to confirm that you qualify for the larger total mortgage.
Reducing the Mortgage Can Create a Different Problem.
If you sell your current home and need a smaller mortgage on the new property, part of the existing mortgage may need to be paid out. Depending on the lender and mortgage terms, that partial payout can potentially trigger a prepayment charge.
Partial Port
The lender may permit only the amount required on the new property to be transferred.
Partial Payout
The portion of the old mortgage that is no longer required may need to be paid out when the existing property is sold.
A Penalty May Apply
Depending on the mortgage agreement, reducing the mortgage balance during a port can create a prepayment charge on the amount being paid out.
Compare the Alternatives
Sometimes paying the penalty and arranging a completely new mortgage can still make more sense than preserving the existing mortgage.
Consider the Remaining Term
The amount of time left on the existing mortgage can affect whether porting it provides enough value to justify the complexity.
Run the Numbers Before Buying
Know the porting, penalty and new-mortgage options before making a purchase decision that depends on a particular financing structure.
Portability Can Save Money — but It Is Not Automatic.
A portable mortgage can potentially allow you to preserve favourable existing terms and avoid a large early-payout penalty when you move. But you still need to qualify, the new property must be approved and the lender's specific porting rules need to fit the transaction.
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