Porting your mortgage is one of the most underused money-saving strategies in Canadian real estate. When rates have risen since you locked in, porting can save you tens of thousands of dollars compared to breaking your mortgage and starting fresh. This guide explains exactly how it works.
How mortgage portability works
When you sell your home and buy a new one, you have three options:
| Option | What Happens | When It Makes Sense |
|---|---|---|
| Break and get a new mortgage | Pay penalty on existing mortgage; take new mortgage at current rates | Current rates are lower than your existing rate |
| Port your mortgage | Transfer existing mortgage to new property at same rate/terms | Your rate is lower than current market rates |
| Port and increase (blend and extend) | Port existing balance + borrow additional funds at blended rate | New home costs more than remaining mortgage balance |
When porting saves you money
Example: $500,000 mortgage at 3.49%, 3 years remaining on 5-year term
| Scenario | Break and Refinance | Port |
|---|---|---|
| Penalty | $15,000 (IRD penalty — typical for fixed rate) | $0 |
| New rate | 5.49% (current market) | 3.49% (preserved) |
| Monthly payment | $3,056 | $2,487 |
| Monthly savings from porting | — | $569 |
| Savings over 3 remaining years | — | $20,484 |
| Total benefit of porting (penalty avoided + payment savings) | — | $35,484 |
Porting this mortgage saves over $35,000. The higher the rate difference between your existing mortgage and current market rates, the more valuable portability becomes.
When porting does NOT save money
| Situation | Why Breaking May Be Better |
|---|---|
| Current rates are lower than your existing rate | You want the lower rate, not the old higher one |
| Your penalty is small (variable rate — usually 3 months’ interest) | Breaking a variable mortgage is cheap; porting has less benefit |
| You need significantly more money | Blended rate may be close to market rate anyway |
| Your lender’s portability terms are restrictive | Short window, property value limits, or requalification denial |
| You are switching to a different lender for better terms | Cannot port between lenders |
Port-only vs blend and extend
Port-only (same or smaller mortgage)
You are buying a home that costs the same or less than what you owe:
| Factor | Details |
|---|---|
| Mortgage balance ported | Same amount, same rate, same remaining term |
| Additional funds | None — or you pay down the difference from equity |
| Rate | Your existing rate preserved exactly |
| Term | Continues from where you are — if you have 3 years left, you still have 3 years left |
Blend and extend (larger mortgage needed)
You are buying a more expensive home and need additional mortgage funds:
| Factor | Details |
|---|---|
| Existing balance | Ported at your current rate |
| Additional funds | New money at current market rate |
| Blended rate | Weighted average of old rate and new rate |
| Term | Typically extended to a new full term (5 years from now) |
Blend and extend — rate calculation
| Component | Amount | Rate | Weight |
|---|---|---|---|
| Ported mortgage | $400,000 | 3.49% | 66.7% |
| New funds | $200,000 | 5.49% | 33.3% |
| Blended rate | $600,000 | 4.16% | 100% |
Blended rate = ($400,000 × 3.49% + $200,000 × 5.49%) ÷ $600,000 = 4.16%
Compare this to breaking and taking the full $600,000 at 5.49% — the blend saves you 1.33% on the entire balance, or approximately $8,000/year in interest.
Lender portability comparison
Not all lenders offer the same portability terms:
| Lender Type | Portability Window | Blend and Extend | Port Restrictions |
|---|---|---|---|
| Big 5 Banks (RBC, TD, BMO, Scotiabank, CIBC) | 90–120 days | Yes — blend and extend available | Must requalify; property must appraise; same province usually preferred |
| National Bank | 90 days | Yes | Similar to Big 5 |
| Desjardins | 90 days | Yes | Quebec-focused but available nationally |
| MCAP | 90–120 days | Yes — generally good portability | Must be within their lending guidelines |
| First National | 90 days | Yes | Standard requalification required |
| CMLS | 30–90 days (varies by product) | Limited | Check specific mortgage terms |
| Merix / Lendwise | 90 days | Yes | Standard terms |
| Street Capital / RMG | 30–60 days | Limited | Shorter windows — plan carefully |
| Tangerine | 60 days | Limited | Shorter window; fewer options |
| Private lenders | Rarely portable | No | Private mortgages are almost never portable |
Key insight: Monoline lenders often match or exceed bank portability. But the portability window varies significantly — always verify your specific lender and product.
Step-by-step porting process
Step 1 — Check your mortgage terms
- Review your mortgage commitment or call your lender
- Confirm portability is included (not all products have it)
- Note the portability window (30, 60, 90, or 120 days)
- Check if blend-and-extend is available
Step 2 — Tell your lender early
- Notify your lender that you plan to port as soon as you list your home
- Request a portability quote — the lender will tell you the terms, blended rate (if applicable), and timeline
- Ask about any portability fees (some lenders charge a small admin fee)
Step 3 — Requalify
Even though you are keeping your existing mortgage, you must requalify:
| Requalification Requirement | Details |
|---|---|
| Credit check | New credit pull — must meet minimum score |
| Income verification | Current employment letter, pay stubs, NOA |
| Stress test | Must pass at contract rate + 2% (or 5.25%, whichever is higher) |
| Property appraisal | New property must appraise at purchase price |
| Debt service ratios | GDS/TDS must be within lender limits |
Gotcha: If your income has decreased or debts have increased since your original mortgage, you may fail requalification — even for the same mortgage amount. In this case, you cannot port and must either break (pay penalty) or stay in your current home.
Step 4 — Coordinate closing dates
- Your sale of the old property and purchase of the new property must both close within the portability window
- Ideal: same day closing (sell and buy on the same date)
- If there is a gap, you may need bridge financing (short-term loan to cover the overlap)
- If the gap exceeds the portability window, you lose the port
Step 5 — Sign port documents
- Your lender prepares a new mortgage commitment for the ported mortgage
- Your lawyer handles the registration on the new property
- The old mortgage is discharged from the old property
- The ported mortgage (at your preserved rate) is registered on the new property
Common porting mistakes to avoid
| Mistake | Consequence | How to Avoid |
|---|---|---|
| Assuming your mortgage is portable | Discover it is not portable after listing | Check your terms before you plan to sell |
| Exceeding the portability window | Lose the port; pay full penalty | Coordinate sale and purchase dates tightly |
| Not budgeting for bridge financing | Scramble for bridge loan if closing dates do not align | Plan for a 1–2 week bridge just in case |
| Failing requalification | Cannot port; must break and pay penalty | Check with your broker before assuming you qualify |
| Not comparing port vs break | May port a rate that is not actually beneficial | Run both scenarios with your broker to confirm which saves more |
| Forgetting about the stress test | May qualify at contract rate but fail the stress test | Calculate stress-tested qualification before proceeding |
Port vs break — decision calculator
Run this comparison with your broker
| Factor | Port | Break |
|---|---|---|
| Your current rate | ___% | N/A |
| Current market rate | N/A | ___% |
| Penalty to break | $0 | $_____ |
| Monthly payment (ported) | $_____ | N/A |
| Monthly payment (new rate) | N/A | $_____ |
| Monthly savings from porting | $_____ | N/A |
| Remaining months in current term | ___ months | N/A |
| Total savings over remaining term | $_____ | N/A |
| Net benefit of porting (penalty avoided + payment savings) | $_____ | — |
If the net benefit is positive (you save money by porting), port. If rates have dropped and the penalty is modest, breaking may be better.