What is Mortgage Porting?

If you want to buy a new property but still have a mortgage on your current home, mortgage porting may be your best choice. This article will dive deeper into it, its benefits, and how to do it.

What is Mortgage Porting?

Mortgage porting in Canada is transferring your current mortgage into a new property. This process allows you to keep your current mortgage terms and conditions, such as the interest rate, remaining balance, and amortization period, which can save you money and make moving more convenient.

How to Port Your Mortgage?

1. Contact Your Lender. Contact your current lender and ask if they offer mortgage porting; if they do, they’ll provide you with the necessary paperwork and explain the process.

2. Apply for a New Mortgage. If you are moving to a new lender, you must apply for a new mortgage. Compare offers from lenders to others.

3. Provide Documentation. You’ll need to provide documentation such as proof of income, employment, and credit history to qualify for a new mortgage.

4. Appraisal: A new appraisal may be required for the new property to determine its value and to ensure it meets the lender’s requirements.

5. Finalize the paperwork: Once you’ve completed all the necessary steps, you must sign the paperwork to finalize the porting process.

Things to Consider before Porting your Mortgage:

1. Fees. Porting your mortgage can save you money. However, there are fees to consider, like appraisal or administration fees.

2. Interest Fees. While you can keep your current interest rate, comparing it to other lenders is essential to ensure you’re getting the best deals.

3. Property value. If the value of your new property is significantly higher than your current property, you may need to take out a new mortgage to cover the difference.

4. Mortgage terms. Review your current mortgage terms and conditions to ensure they still meet your needs.

Benefits of Mortgage Porting

• Cost Savings

It can save you money from penalties and other fees for breaking your the contract early.

• Easier Qualification

You already established a mortgage history with your lender, so qualifying for a new mortgage will be easier.

• Fixed Interest Rates

Porting your mortgage can stabilize your interest rate if you’re already satisfied with your current rate. You won’t worry about interest fluctuations, which gives you peace of mind.

• Time-saving

With mortgage porting, you won’t deal with the lengthy process of applying for a new mortgage.

The Downside of Mortgage Porting

• Limited Options

If you choose to port your mortgage, you may be limited to your lender’s current lender’s products and services. You may be unable to take advantage of better deals from other lenders.

• Higher Interest Rates

Even if you can keep your current interest rate when you’re porting, your lender may require you to take out additional financing at a higher interest rate. You’ll end up paying more at the end of your mortgage.

• Restrictive Terms

You won’t be able to change the amortization period, payment frequency, or other features of your mortgage because porting your mortgage requires you to keep the same terms and conditions as your existing mortgage.

• Limited Flexibility

Porting your mortgage can limit your flexibility if you need to borrow additional funds for your new property. You may need to take out a second mortgage or line of credit, which can have higher interest rates and fees.

• Fees

While porting your mortgage can save you money on prepayment penalties and other fees associated with breaking your mortgage early, there may still be fees associated with the porting process, such as an appraisal or administration fee.

When is Mortgage Porting a Good Idea?

If you’re selling your existing home and buying a new one with a significant time on your existing mortgage.

If you plan to move soon, mortgage porting can be the best option. It allows you to break your mortgage contract without penalties.

Most importantly, you can determine if it is the best choice for you depending on your financial situation, financial goals, and long-term plans for home ownership.

How to Prepare Your Finances for a Successful Mortgage Porting Process?

1. Check credit score. Your credit score will determine your eligibility for mortgage porting. Check your credit score and improve it if necessary before applying for porting.

2. Determine your Budget. Assess your budget and determine what you realistically afford. Ensure that you include other costs associated with the process.

3. Review your Existing Mortgage Terms. Ensure you understand your current mortgage terms and compare them to other products if you find better deals.

4. Save for closing costs. When you port your mortgage, you’ll need to pay closing costs, including legal, appraisal, and transfer fees. Make sure to budget for these costs and save accordingly.

5. Avoid significant financial changes. Changing jobs or taking on new debts during your mortgage process will likely lower your qualifying chance.


Before deciding on your mortgage, ensure you understand your financial situation and the terms of the process you’re going into. Research about it and ensure you have enough knowledge before applying.

Have any questions? Contact us at +1 416-825-0142. We’ll help you here at Private Mortgage Canada.

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