Mortgage porting in Canada means moving your existing mortgage from one home to another with the same lender, usually keeping your current term and rate. Lenders allow it only if you qualify and the new property meets their rules, and it works differently from assuming a mortgage or refinancing.

Mortgage porting in Canada is the process of moving your existing mortgage from one property to another with the same lender, usually keeping the original term, rate, and prepayment privileges. It is not automatic: you must apply, qualify, and meet the lender's rules for the new home. For a broader look at borrowing options, see bad credit loans.

Feature	Porting	Assuming	Refinancing
What happens	You move your mortgage to a new property	A buyer takes over the seller's mortgage	You replace your mortgage with a new one
Who applies	Existing borrower	New buyer	Existing borrower
Rate and term	Usually kept, unless blended	Usually kept, subject to lender approval	New rate and term
Qualification	Full credit and property approval	Buyer must qualify with lender	Full credit and property approval
Typical costs	Appraisal, legal, discharge, admin fees	Assumption fee, legal fees	Penalty, legal, appraisal, discharge fees
Best for	Moving and keeping a favourable rate	Buying a home with an existing low-rate mortgage	Changing terms, accessing equity, or consolidating debt

What mortgage porting means

Porting a mortgage, sometimes called a mortgage transfer, allows you to carry your current mortgage to a new property. The mortgage is secured by the new home instead of the old one. If the new mortgage amount is the same or lower, the lender may simply continue the existing contract. If you need more money, the lender may offer a blend-and-extend, where your old rate is combined with the current rate for the remaining term. This can be useful when your existing rate is lower than current market rates, but the blended rate will be higher than your original rate. the Financial Consumer Agency of Canada notes that mortgages are complex contracts, and portability depends on the terms you agreed to. Porting is different from a simple assumption or a refinance. It keeps the original mortgage contract alive, which can preserve a favourable rate and avoid a prepayment penalty. However, the lender still treats it as a new credit application, so your income, debts, and credit score matter. If your situation has changed since you first qualified, the port may be denied or approved on different terms. For co-signing questions, see what it means to be a co-signer.

When lenders allow porting

Lenders allow porting when the new property meets their security and loan-to-value requirements, you continue to qualify, and the mortgage is in good standing. Most closed mortgages include a portability clause, but some do not. Your mortgage documents will state whether porting is permitted and any conditions, such as a time limit between sale and purchase. The Canada Mortgage and Housing Corporation provides general information on homebuying and mortgage rules, but individual lender policies vary. Common conditions include: the new home must be in Canada and acceptable to the lender; the mortgage balance cannot exceed the original amount unless the lender approves a blend; the property must pass an appraisal; and you must not be in default. Some lenders limit porting to owner-occupied homes or exclude certain property types. If you are buying with another person, the lender may require that person to qualify as a co-borrower or guarantor. Porting is not guaranteed, even if your mortgage is portable. The lender can decline if the new property is in a declining market, if your debt ratios are too high, or if your credit history has worsened. It is important to get written confirmation before you remove conditions on a purchase.

How porting works step by step

Porting involves several steps, and timing matters because you are coordinating a sale and a purchase.

1. Review your mortgage documents to confirm portability, any time limits, and fees. Call your lender if the language is unclear.
2. Tell your lender before you list or buy, so you know your budget and conditions. Ask for a porting pre-approval.
3. Apply for the port and provide income, credit, and property details. The lender will check your credit and debt ratios again.
4. The lender arranges an appraisal and reviews the new property. If the appraisal is lower than expected, you may need to adjust your down payment.
5. Coordinate the sale and purchase dates. If closings do not align, you may need bridge financing, which has its own costs and interest.
6. Sign the porting documents, pay any fees, and register the mortgage on the new home. The old mortgage is discharged from the old property.

Use a loan payment calculator to compare your current payment with a blended or new payment. This can help you see whether porting, assuming, or refinancing leaves you better off.

Porting vs assuming vs refinancing

These three options are often confused. Porting is for the existing borrower who is moving. Assuming is for a buyer who takes over the seller's mortgage. Refinancing is for an existing borrower who wants a new mortgage contract. the Financial Consumer Agency of Canada's loans page explains that loan agreements set out your rights and responsibilities, including whether a mortgage can be transferred. When you assume a mortgage, the buyer agrees to take on the seller's obligations. The lender must approve the buyer, and the seller may remain liable unless the lender releases them. Assumption can be attractive if the existing mortgage has a low rate, but the buyer needs to qualify. Refinancing replaces the mortgage entirely. You may refinance to get a lower rate, change the amortization, consolidate debt, or access equity. Refinancing usually triggers a prepayment penalty if you break a closed mortgage, plus legal and appraisal fees. Porting avoids the prepayment penalty in many cases, but it may not be allowed if you need a much larger mortgage or a different property type. A blend-and-extend is a middle ground: you keep the old rate on the existing balance and add new funds at the current rate, with a new term. The Bank of Canada publishes policy interest rates, which influence mortgage rates, but your lender sets its own rates based on your profile and the market.

Costs, risks, and common mistakes

Porting can save you a prepayment penalty, which on a fixed-rate mortgage can be significant. However, it is not free. Typical costs include an appraisal fee, legal fees, a discharge fee for the old property, a registration fee for the new property, and an administration fee. Some lenders waive or reduce these fees if you port, but you should ask for a written estimate. Risks include: the lender may decline the port after you have committed to a purchase; the new property may not appraise for the purchase price; your debt ratios may fail if your income has dropped; and a blended rate may be higher than you expect. Porting also does not let you avoid all costs of moving, such as land transfer taxes, title insurance, and moving expenses. If you are considering a co-signer for the new mortgage, remember that a co-signer takes on legal responsibility if you default. The Financial Consumer Agency of Canada has information on joint borrower disclosure, and you can read more about co-signing obligations through provincial resources.

Common mistakes to avoid:

• Assuming porting is automatic and skipping the application.
• Listing your home before confirming portability and time limits.
• Forgetting that a larger mortgage may need a blend-and-extend at a different rate.
• Ignoring bridge financing costs when closings do not line up.
• Not comparing porting costs against refinancing or paying the penalty.
• Missing that a new property must pass the lender's appraisal and loan-to-value rules.

Porting suits homeowners who are moving within Canada, have a mortgage in good standing, and want to keep a favourable rate or avoid a prepayment penalty. It suits less well if you need a much larger mortgage, if your credit has changed, or if your lender does not offer portability. Before you decide, read your mortgage documents, speak with your lender, and consider getting independent legal or financial advice. For more on borrowing, see bad credit loans and co-signing a loan.