Mortgage Blog

Are you able to port your mortgage?

April 17, 2018 | Posted by: Holly Cochrane

What does it mean to “port” your mortgage? Porting your mortgage means taking your existing mortgage along with its current rate and terms from one property and transferring it to another property you wish to purchase.

By porting the intention is to avoid penalties for breaking your current mortgage contract and keeping the existing rate (on current mortgage portion) if the current rates are higher than what you have.

Each bank or lender has their own guidelines for porting and your current mortgage may not be portable.  For example, variable rate mortgages can’t be ported. Also, some lenders only allow a certain window of days where the mortgage can be ported. Usually between 30-120 days, it varies depending on the lender. Porting would obviously not work if the homeowners were building a new house, because it would take longer than 120 days for the home to be completed. Another aspect to consider is you might not qualify based on the new mortgage rules and stress testing.

It is very important to not list your home and sign a purchase contract without speaking to a mortgage professional first to confirm if your mortgage is portable.

We are here to help you and answer all your questions! Ask us first before you make any decisions about buying a new property.

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