Mortgage Portability Explained: How to Move Your Mortgage When You Move Homes

When selling and buying a home in Ottawa, you may already have a great mortgage rate—but what happens to that rate when you sell? Mortgage portability gives you the option to transfer your existing mortgage to your new home, potentially saving thousands in penalties and higher interest.

🔑 What Is Mortgage Portability?

Portability lets you take your existing interest rate, remaining term, and sometimes special features with you to your new property—without breaking the mortgage.

📌 Why It Matters in Today’s Market

• Avoid hefty penalties: Breaking a mortgage early, especially fixed-term, can mean paying the Interest Rate Differential (IRD)—often thousands of dollars.
• Keep a lower rate: If market rates have risen since you locked in your mortgage, portability lets you preserve your original rate.
• Simplify financing: Rather than opening a brand-new mortgage, you seamlessly transfer your current one, saving time and stress.

🧭 How It Works Step-by-Step

1. Check your mortgage terms—not all mortgages are portable, especially some variable or restricted products.
2. Requalify under current rules—even a portable mortgage requires approval for the new property, including stress testing.
3. Coordinate your sale and purchase—most lenders give a 30–120 day window to complete both closings.
4. Blend & increase (optional): If the new home costs more, you can port the existing balance and top up at current rates, creating a blended rate.

✅ Is It Right for You?

• Best for fixed-rate cases during mid-term moves.
• Ideal if today’s rates are higher than your locked-in rate.
• Helps avoid breaking penalties while moving.
• But remember: you still need to requalify and may have restrictions on timing and property type.