Can you actually port your mortgage?
I get asked all the time whether a mortgage can be ported, and while it's a great option in theory, it doesn't always work out in practice. Here's why.
A “port” or porting means transferring an existing mortgage from one property to another. This allows you to keep your current terms, including the interest rate, remaining balance, and conditions, without breaking the mortgage or paying penalties.
It's especially attractive when you have a strong rate that you don't want to lose. However, here is the catch. Most people are upsizing when they move, which means they need a larger mortgage. This is where porting often falls apart.
In most cases, a port is only fully honored when:
- The mortgage amount stays the same, dollar for dollar
- You are decreasing your mortgage amount
If you need to increase your mortgage, the additional funds are typically blended with a new rate, or the port is not an option at all, depending on the lender.
So while porting can be a great tool, it is not always as straightforward as you may expect, especially in an upsizing scenario.
Reach out to Amanda Walczyk for all things Mortgage!
Amanda Walczyk | Mortgage Agent - Level 2