Mortgage Guide
How taking your mortgage to a new home works, what changes when you borrow more or less, and the questions to ask your lender before you list.
You signed a five-year fixed mortgage, and three years in you need a bigger place, or a smaller one, or a different neighbourhood. Breaking the mortgage can cost thousands. Mortgage porting is the feature that may let you take the existing loan with you instead. This guide explains what porting is, what the federal consumer agency says about it, where the catches are, and the questions to ask your lender before you list your home.
The Financial Consumer Agency of Canada (FCAC) defines it this way: "If you sell your home to buy another one, a portable mortgage allows you to transfer your existing mortgage. This includes the transfer of your mortgage balance, interest rate and terms and conditions."
In plain terms, the loan follows you to the new property. You keep the rate and the remaining term you already have, and you avoid the prepayment charge that would normally apply if you paid the mortgage off early. FCAC lists two reasons to consider it: your existing mortgage has favourable features, or you want to avoid prepayment penalties for breaking your contract early.
Porting is a contract feature, not a legal right. FCAC tells borrowers to check with their lender to see whether the mortgage is eligible and to ask about any restrictions. Some mortgages can be ported and some cannot.
There is no federal rule that says how many days you have between selling and buying. Each lender writes its own window into its contract or policy, and it can be short. If your purchase closes after your sale, you may need short-term financing in between; if it closes before, you may need bridge financing to cover the gap. Find out the exact window before you set your completion dates.
This is the most common case, and FCAC's advice is short: ask your lender for details if you need to borrow more money for your new home. Lenders handle the extra money in different ways. A common approach is to add the new money at a current rate and combine it with your existing rate, producing a blended rate on the larger balance. The method is lender-specific, so ask how your lender calculates it and get an example in writing.
Suppose you owe $400,000 at a contract rate we'll call Rate A, and you need $200,000 more for the new home at a rate we'll call Rate B. If the lender blends by balance, the blended rate is roughly (400,000 × Rate A + 200,000 × Rate B) ÷ 600,000. Two-thirds of the weight sits on your old rate and one-third on the new one. These are illustrative figures to show the arithmetic, not a quote; your lender's method may also weight by time left in the term.
Borrowing more is a new credit decision. Expect the lender to ask for current income documents and to check your debts and credit again. If you are borrowing more on an insured mortgage, an extra insurance premium can apply to the increase. CMHC's published premium schedule has a separate column for the "increase to loan amount for portability". For example, at a loan-to-value of 90.01% to 95%, CMHC lists 4.00% on a total loan and 6.30% on the portability increase. That is CMHC's schedule; other insurers set their own, and your lender will confirm the actual figure. Our guide to mortgage default insurance explains how premiums work.
Downsizing is where people get caught. FCAC warns: "If your new home costs less than the amount of your mortgage, you may pay a prepayment penalty." If you carry a smaller balance to the new home, the part you are paying off is treated as a prepayment. Ask your lender whether your annual prepayment privilege can absorb some of that reduction, and how any charge on the rest would be worked out. Our guide to the mortgage prepayment penalty explains the two common calculation methods.
| Option | What happens to your current mortgage | Main trade-off |
|---|---|---|
| Port | Moves to your new home with the same rate and term | Lender approval, timing window, possible blended rate if you borrow more |
| Break and start fresh | Paid off from the sale proceeds | Prepayment penalty plus fees, but full freedom to choose a new lender |
| Assume (buyer takes it over) | The buyer of your home takes over your mortgage | Lender must approve the buyer; you may stay liable in some provinces |
| Blend and extend | Stays on the same home with a new, longer term | Doesn't help if you are moving |
FCAC describes the assumable option as typically available on most fixed-rate mortgages, but not on variable-rate mortgages or home equity lines of credit. It also warns that in some provinces the seller may remain personally liable after the sale if the buyer stops paying, unless the lender releases them.
If you are shopping for a new mortgage today and expect to move during the term, portability is worth weighing alongside the rate. Our fixed vs variable comparison covers features beyond the rate. Blue Sky Mortgage Group is a licensed BCFSA mortgage brokerage in Richmond, and you can ask us to read through your porting clause before you list.
Porting means taking your existing mortgage with you when you sell one home and buy another. FCAC says a portable mortgage transfers your mortgage balance, interest rate and terms and conditions to the new property, so you can avoid a prepayment penalty for breaking the contract early.
No. Porting is a contract feature. FCAC tells borrowers to check with their lender to see whether the mortgage is eligible and to ask about any restrictions.
There is no federal rule on this. Each lender sets its own window, and it can be short. Ask your lender for the exact number of days before you set completion dates.
You may pay a prepayment penalty on the part of the balance you don't carry over. FCAC warns that if your new home costs less than the amount of your mortgage, you may pay a prepayment penalty.
Usually, especially if you borrow more. Expect the lender to review your income, debts, credit and the new property. If the mortgage is insured and the amount goes up, an insurance premium can apply to the increase.
Rules as of October 2026, from FCAC (mortgage features page modified October 15, 2025) and CMHC's premium schedule. Lender porting policies vary. Confirm with your lender.
This is general information, not financial advice. Speak to a licensed mortgage professional about your situation.
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