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Porting is transferring an existing mortgage — its rate, term, and balance — from one property to another when a borrower sells and buys, avoiding the prepayment penalty that would otherwise apply to breaking the contract early.
Porting lets a borrower carry an existing mortgage — rate, term, and balance — from the property they’re selling to the one they’re buying, instead of breaking the contract and paying a prepayment penalty. It only works if the mortgage contract includes a portability clause and the lender approves the new property and, typically, the borrower’s requalification.
Timing is the usual complication: sale and purchase closings rarely land on exactly the same day. When they don’t, bridge financing covers the gap so the port isn’t broken.
Buying a more expensive home usually means topping up the mortgage with new funds at the current rate, blended with the ported rate on the original balance — the same mechanics as a blend and extend.
Not automatic: porting must be offered in the mortgage contract and approved by the lender; the borrower typically still needs to requalify for the new property.
Timing gaps need bridge financing: when the sale and purchase don’t close on the same day, bridge financing can cover the gap so the port isn’t disrupted.
Topping up changes the math: borrowing more to buy a pricier home usually means blending the ported rate with a new rate on the additional funds, similar to a blend and extend.
Who structures it: mortgage agents (Ontario, FSRA), submortgage brokers (BC, BCFSA), mortgage associates (Alberta, RECA), and courtiers hypothécaires (Quebec, AMF) confirm portability terms before a client lists their home.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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