Porting Your Mortgage When You Move: How It Works (2026)
Porting moves your existing balance, rate and term to a new property, no penalty. How blending works when you borrow more, and when it beats breaking.
Most Canadian mortgages are portable: you can transfer the existing balance, rate and remaining term to a new property instead of paying it out and taking the penalty. If the new home needs a bigger mortgage, the lender lends the extra at today's rate and blends the two into one rate for the remaining term. A $380,000 balance at 2.5% with two years left, ported into a $560,000 mortgage where new money costs 4.49%, blends to about 3.14%, avoiding a penalty of roughly $2,375 to $15,000. The catch: you must re-qualify on the new property, and the sale and purchase must close within the lender's window, usually 30 to 120 days.
Figures come from the CostToClose breaking-your-mortgage calculator.
How a blend works
| Item | Amount | Rate |
|---|---|---|
| Ported balance | $380,000 | 2.50% (existing) |
| New money | $180,000 | 4.49% (today's rate for the remaining term) |
| Blended mortgage | $560,000 | ≈ 3.14%, weighted by amount |
| Payment, 25 years | $2,691/mo | |
| Compare: break and take a new $560,000 mortgage at 4.49% | $3,096/mo, plus the penalty |
Produced by the CostToClose calculator, 14 September 2026. Some lenders blend for the remaining term only ("blend to term"); others let you extend to a fresh five years ("blend and extend") at a rate that reflects the longer period. Ask which.
The rules
- Re-qualification. The new property is appraised and you are underwritten again, at the stress-test rate, for the full new amount. A port is not a right; it is a new approval on old terms.
- Timing. Sale and purchase must close within the port window: 30 days at some lenders, 90 to 120 at others. Close the purchase first and the lender may require the penalty up front, refunded when the sale closes within the window.
- Same lender, same product. You cannot port to a different lender, and some products (certain promotional or restricted mortgages) are not portable at all.
- Smaller mortgage. Porting to a smaller balance means paying down part of the old mortgage; the penalty applies to the amount not ported unless it fits within the prepayment privilege.
- Insured mortgages. The CMHC insurance can move with the mortgage if the new purchase is also eligible; the premium is charged only on new money.
Worked example from the calculator
Seller closes on 30 September, buys with closing 14 October; $380,000 at 2.5%, 24 months remaining, new home needs $560,000:
| Option | Rate | Monthly payment | Penalty |
|---|---|---|---|
| Port and blend | ≈ 3.14% | $2,691 | $0 |
| Break, new mortgage at 4.49% | 4.49% | $3,096 | ≈ $2,375 (3 months) to ≈ $15,000 (IRD on a 2.5% mortgage vs current rates is typically small — but check the lender's posted-rate method) |
Here the IRD is small because the old rate is below current rates; the lender is happy to be repaid. The port still wins by $405 a month on the blended rate for two years. Reproduce this.
When paying the penalty is better
- Your existing rate is above current rates, so the blend is worse than a fresh mortgage and the IRD penalty is small (three months' interest only).
- The lender's new-money rate is uncompetitive and you can get materially better elsewhere.
- The port window does not fit your dates and bridge financing is unavailable.
- The lender will only blend to term, and you want a new five-year lock at today's rate.
Frequently asked questions
Can I port my mortgage to a new house?
Usually, if your mortgage is portable and you re-qualify for the new property with the same lender within their window.
What is a blended mortgage rate?
The weighted average of your existing rate on the ported balance and the current rate on the new money, for the remaining term.
How long do I have to port my mortgage after selling?
Typically 30 to 120 days between the sale closing and the purchase closing, depending on the lender.
Do I pay a penalty if I port?
Not on the ported amount. If you reduce the mortgage, the amount paid off beyond your prepayment privilege attracts the penalty.
Can I port a variable-rate mortgage?
Some lenders allow it; many require converting to a fixed rate at porting. Check the mortgage terms.
Sources
- Financial Consumer Agency of Canada, mortgage portability and blended rates — checked 14 Sept 2026
- CMHC, portability of insured mortgages — checked 14 Sept 2026
- Published portability terms of major Canadian lenders — checked 14 Sept 2026
This is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown, and it is not legal, tax, or mortgage advice. Rules and rates change, so confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.