Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Mortgages

What does it mean to port your mortgage?

admin by admin
September 12, 2012
in Mortgages
Reading Time: 2 mins read
Share
Tweet
Share
0 Shares

by Ratehub.ca

Finding the lowest mortgage rate is definitely an important part of mortgage shopping, but it’s not the only mortgage feature worthy of your attention. The sale of your home could evoke three crucial mortgage features: mortgage penalty fees, assumability and portability. Today, we will focus on mortgage portability.

What is mortgage portability?

To port your mortgage is to transfer the debt you owe on one property, to another property.

When would you need to port your mortgage?

If you have sold your current house and purchased a new one. Suppose you acquired a 5-year fixed mortgage loan to purchase a condo unit and after three years of condo-living, you feel ready to transition into a single-family home. At that point, you would only be three years into the five-year contract. What happens to your 5-year fixed mortgage contract?

The portability feature would allow you to transfer that mortgage and its remaining balance to your new property.

If your mortgage is not portable, you may be forced to pay the penalty for breaking your mortgage contract early, in which case, you can use a mortgage penalty calculator to estimate the amount you owe. The down-side with taking this path is that it may end up costing you thousands of dollars, especially in periods of decreasing interest rates.

The ideal condition to port a mortgage is when your current mortgage rate is lower than what is available on the market. For example, if you locked in a 5-year fixed rate at 2.99 per cent three years ago, and the best 5-year fixed rate today is 3.50 per cent – it is advantageous for you to keep the 2.99 per cent fixed rate. Because a lower interest rate reduces your monthly mortgage payment and the total amount of interest you pay.

Keep in mind that mortgage portability is a feature that may not be available with every mortgage. Earlier this year, BMO offered a special 5-year fixed Low Rate mortgage product at 2.99 per cent that was fully closed, where mortgage portability was not available. To learn more about the various features your mortgage has, including portability, it’s best to consult an experienced mortgage broker.

—

About the Contributor

RateHub.ca is an independent, impartial website that compares mortgage rates. RateHub also focuses on delivering clear, easy-to-understand mortgage education and robust mortgage calculators.

Previous Post

Questions to Ask When Thinking About Buying

Next Post

How Do I Use the Home Buyer’s Plan?

admin

admin

Related Posts

Windsor, ON city skyline
Canada

10 Years of Rising Mortgage Payments: The Canadian Cities Hit Hardest

July 9, 2025
A house model placed on tax documents.
Advice

Property Worth Less Than You Paid? Here’s What Canadian Homeowners Can Do

June 14, 2025
A hand grips a shopping cart with a miniature house inside.
Affordability

Why Mortgage Porting Could Be the Best Financial Move You Make This Year

June 8, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

A woman sitting on a bed, looking relaxed, with a fan blowing gently beside her.

How to Keep Your Bed Cool in the Summer and Sleep Through the Heat

July 25, 2025

8 Best Malls in the GTA to Beat the Heat This Summer 

July 24, 2025
mountains, cherry blossom and vancouver skyline

6 Moments That Made Vancouver’s Market the Real Estate Rollercoaster Ride of a Decade 

July 23, 2025

5 Ways Calgary Real Estate Transformed Over the Past 10 Years

July 23, 2025

Featured Listings

A black house perched on a rocky hill, surrounded by a clear blue sky and distant mountains.

Discover Canada’s Most Unique Homes: 14 Can’t-Miss Properties

July 17, 2025

6 Best Cities for Affordable Luxury Homes in Canada Under $1M

July 10, 2025

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.