Yes, most Canadian mortgages are portable, meaning you can transfer your existing rate, balance, and term to a new home when you move. Lenders typically give you a 30–120 day window between selling your current property and closing on the new one to complete the port. If your new home costs more, you can often “port and increase” by blending your existing rate with the current market rate on the new money. Porting usually avoids a prepayment penalty, but you must requalify under the OSFI B-20 stress test, and not every property, lender product, or borrower situation qualifies.
— Why porting a mortgage matters more in 2026 than it did five years ago
Many Canadians locked in fixed mortgage rates between 2020 and 2022 that are well below what lenders offer today. If you're thinking about moving, walking away from that rate can cost you tens of thousands of dollars over the remaining term. That's why mortgage portability — the ability to carry your existing mortgage to a new property — has become one of the most valuable features on any Canadian home loan.
It lets you sell, buy, and keep the mortgage you already have, often without a prepayment penalty. The mechanics matter, though. Not every mortgage is portable, not every property qualifies, and the closing timeline is tighter than most homeowners expect. Before you list your current home, it helps to know exactly how the process works and whether your file will clear the requirements. You can check today's mortgage rates to see what breaking your mortgage would cost you if porting isn't an option.
— Quick start: pick your porting path in 60 seconds
Before you dive into the mechanics, answer four quick questions. Your answers will tell you which parts of this article matter most for your situation.
If yes, portability is on the table. If you want to switch lenders, you'll need to break your current mortgage instead.
Same price is the cleanest scenario. More expensive means “port and increase.” Less expensive means “port and decrease,” which may trigger a partial penalty.
Keeping the same or shorter term is straightforward. Adding new years is where blended-rate math gets more complex.
A drop in income can disqualify your port. See our plain-English mortgage glossary for any term you don't recognize.
— What mortgage portability actually is (and what it is not)
Portability is a benefit written into the mortgage contract at the time you signed it. Most major Canadian lenders offer portability on their standard fixed and variable products, but the exact rules vary by lender and by product. Some lender specials, promotional rates, and cash-back products are not portable at all.
It also isn't automatic. Even when your contract allows portability, you have to apply and get approved for the new property, just as you would for any other mortgage. The lender needs to underwrite the new home, verify your current income and credit, and confirm the property meets their lending guidelines.
If you're comparing brokers versus going direct to a bank, understanding why working with a broker matters becomes especially important on port files, because a broker can flag portability restrictions before you sign a purchase agreement.
— The 30 to 120 day porting window, explained
The cleanest port happens when the sale of your current home and the purchase of your new one close on the same day. The mortgage moves in a single legal step, and no penalty or bridge is involved.
If the two closings are days or weeks apart, the port still works, but you'll need bridge financing, a short-term loan that covers the down payment on the new home before your sale proceeds arrive. Bridge terms usually run 30 to 120 days depending on the lender.
Beyond 120 days, most lenders treat the file as a new mortgage rather than a port. Confirm your lender's exact window in writing before you set your closing dates. You can also model the numbers with our payment calculator.
No penalty, no bridge
Short bridge if needed
Bridge financing required
Treated as new mortgage
— Port and increase, port and decrease, or straight port: which scenario is yours?
Your porting path depends on how the new home's mortgage compares to your current one. There are three scenarios, and each behaves differently.
Straight port applies when you buy a home with the same mortgage amount as your current balance. Your rate, term, and payment stay the same. This is the simplest outcome and the one lenders process the fastest.
Port and increase applies when the new home costs more and you need to borrow additional funds. Your existing balance keeps its original rate. The new money is written at today's market rate. The lender then combines the two into a single blended rate, a weighted average based on how much of the total mortgage each portion represents. You'll requalify under the OSFI B-20 stress test, using the greater of contract rate plus 2% or 5.25%, on the full new amount.
Port and decrease applies when the new home costs less and you're paying down principal. Your rate carries over on the smaller balance, but the amount you're paying down may trigger a partial prepayment penalty. Some lenders waive this on port-and-decrease files; others don't. Get the answer in writing before you commit. You can estimate the exposure with our prepayment penalty calculator.
— Step by step: how to port your mortgage in Canada
The port process typically takes six to eight weeks from first conversation to funded new mortgage. Here's how it unfolds.
- 1Check your mortgage contract.Look for the word “portable” or “portability” in your original mortgage commitment or renewal agreement. If the term isn't clear, call your lender and ask them to confirm in writing.
- 2Talk to your lender or broker early.The moment you decide you might move, start the conversation. As Razi Khan, Founder and Mortgage Broker at Pegasus, often reminds clients, most porting problems come from starting the file too late, not from the port itself being denied.
- 3Get the new property pre-underwritten.Before you make a firm offer, ask the lender to review the property type, location, and price range. Some port-eligible mortgages carry restrictions on rental units, non-standard construction, or rural properties.
- 4Coordinate closing dates.Aim for closings that fall within your lender's port window. Same day if possible, otherwise no more than 30 to 60 days apart to keep bridge financing simple.
- 5Requalify under the stress test.Any port with new money triggers requalification at the greater of contract rate plus 2% or 5.25%. Your income, debts, and credit may be reviewed against current guidelines.
- 6Arrange bridge financing if needed.Ask your lender to quote the bridge alongside the port so both close on time.
- 7Sign and close.Your lawyer registers the mortgage against the new property and the file closes.
— What can disqualify your port (even when your contract allows it)
Credit changes are the most common cause of a denied port. If your score has slipped or you've added significant new debt, the lender may not requalify you at the original terms.
Income changes matter just as much. Moving from salaried to self-employed, taking parental leave, or changing employers within a probationary period can all cause underwriting to fail. Insured mortgages, those backed by CMHC, Sagen, and Canada Guaranty, carry additional insurer requirements when the property or borrower profile changes.
Property type is another gate. Condos with high commercial content, homes with legal rental suites, or rural properties on well and septic may fall outside the lender's port guidelines. If any of these apply, alternative lending options may be a better path.
— Porting versus breaking: how to work out which costs less
The right choice comes down to two numbers: the cost of breaking your current mortgage, and the value of the rate you'd give up.
On a fixed-rate mortgage, breaking usually triggers the greater of three months' interest or an interest rate differential (IRD), a calculation that can run into the tens of thousands of dollars on longer-term files with rates well below current market. Variable-rate mortgages typically cap the penalty at three months' interest, which is far more predictable.
Consider an illustrative case: a $500,000 balance with 2.5 years remaining on a 3.0% fixed rate. Breaking might cost roughly $3,500 in three months' interest, or an IRD penalty of several thousand more depending on the lender's calculation. Porting that rate to a new home preserves the below-market rate for the full remaining term, often worth substantially more than the penalty over 30 months. Figures shown here are illustrative only — not a forecast.
Run your specific numbers through our prepayment penalty calculator before you decide.
— Common mistakes to avoid when porting your mortgage
Small missteps can cost you the port. Watch for these six.
- Leaving it to the last week. Ports need underwriting time. Start six to eight weeks before your target closing date.
- Not confirming portability in writing. Verbal confirmation isn't enough. Get the lender to email or letter the specifics of your port terms.
- Assuming your rate carries automatically to new money. On port-and-increase files, only the existing balance keeps the original rate. New money is blended at today's rate.
- Missing the requalification step. Any port with new money puts you back through the OSFI B-20 stress test. Prepare your income documents early.
- Ignoring insurer premium recalculation. Insured mortgages may require a top-up premium on port-and-increase files.
- Forgetting Quebec notarial timing. Notarial closings in Quebec can add days to the file, tightening your port window. For a deeper look at rate preservation strategies specifically, see Moving With a Mortgage in Canada: Keep Your Rate.
— Frequently asked questions about mortgage portability
Can I keep my mortgage when I move to a new house in Canada?
How long do I have to port my mortgage after I sell my old home?
What happens to my interest rate if I port my mortgage to a bigger house?
Do I have to pass the stress test again if I port my mortgage?
Which Canadian lenders don't allow mortgage porting?
Is it worth porting my mortgage or should I just pay the penalty and break it?
Can I port my mortgage to a different province?
Does porting a mortgage cost anything, or is it free?
— The bottom line: portability is a plan, not a guarantee
Mortgage portability can be one of the most valuable features on your loan, especially when you're carrying a rate below current market. It won't happen automatically, though. It takes early planning, careful lender coordination, and a clear-eyed look at whether your file still qualifies under today's rules.
The homeowners who port successfully start the conversation six to eight weeks before their target closing date. They confirm the details in writing. And they treat the port as a fresh underwriting file, not a rubber stamp.
Find out if your mortgage can come with you
Get pre-approved on your next home in minutes and know exactly where you stand before you list.
Get Your Instant Pre-Approval Certificate →
About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & References
- OSFI Guideline B-20 — Residential Mortgage Underwriting Practices and Procedures. Source of the qualifying rate rule: the greater of contract rate plus 2% or 5.25%. osfi-bsif.gc.ca
- Financial Consumer Agency of Canada — Mortgages overview. canada.ca
- Financial Consumer Agency of Canada — Prepaying your mortgage. canada.ca
- Canada Mortgage and Housing Corporation (CMHC) — Mortgage Loan Insurance for Consumers. cmhc-schl.gc.ca
- Sagen — private mortgage insurer. sagen.ca
- Canada Guaranty Mortgage Insurance — private mortgage insurer. canadaguaranty.ca