If you are moving during your term, you have options besides breaking the mortgage and paying a penalty. Here is how the main ones work.
Porting your mortgage
- You move your mortgage to a new home, keeping the same rate, term and terms.
- Lenders typically require the new purchase to close within a set window, often around 90 to 120 days of the sale.
- You must qualify for the new property and the new mortgage amount.
- If the new mortgage is larger, the extra amount is often blended at current rates.
Porting is most valuable when your existing rate is lower than current rates or when your penalty would be large.
Blend and extend
With a blend-and-extend, your lender combines your current rate with today’s rate for a new, longer term. You avoid a penalty and may lower your rate somewhat, but the blended rate is usually higher than the best market rate.
Increasing your mortgage when you port
If you need more money for the new home, the lender may add a new portion at current rates. You then have a blended rate on the combined amount.
Comparing the options
| Option | Good for | Watch out for |
|---|---|---|
| Port | Low existing rate and a move within the term | Tight timing windows and requalifying |
| Blend and extend | Avoiding a penalty when rates have risen | You may not get the best current rate |
| Break and pay the penalty | Big savings from a new rate | Penalty size. See penalty guide. |
| Sell and start fresh at renewal | A move near the end of your term | Timing your sale and purchase |
Questions to ask your lender
- Is my mortgage portable, and for how long after I sell?
- What happens if the new home costs less?
- How would a blended rate be calculated?
- Are there fees or requalifying requirements?
Frequently asked questions
Do all mortgages allow porting?
No. Many do, but some products and lenders restrict it. Check your contract before you sign.
Can I port to a different lender?
No. Porting is done with the same lender. Moving to another lender generally means paying out the mortgage.
Will I have to requalify?
Usually yes, for the new property and mortgage amount.
Moving during your term? Compare your options
Answer a few quick questions and we will connect you with a licensed Ontario mortgage professional. It is free to use and there is no obligation.
Get matched nowImportant: Ottawa Mortgages is an independent information and referral service. We are not a lender, mortgage broker or mortgage brokerage, and we do not give mortgage advice or make credit decisions. If you ask to be connected, your details may be shared with a licensed Ontario mortgage professional, who may compensate us. Rates, rules and eligibility change often. Confirm details with a licensed professional and official sources, and check any Ontario mortgage broker’s licence with FSRA. Read our full disclosure.