Mortgage Porting: How to Take Your Mortgage With You!

If you are moving to a new home in Alberta before your current mortgage term is up, you might worry about paying a costly penalty to break it. In many cases, there is another option… mortgage porting. This process allows you to transfer your existing mortgage, including its rate and terms, to your new property.

At Canadian Mortgage Professionals, we help Alberta homeowners explore mortgage porting as a way to save money and simplify the moving process.

What Is Mortgage Porting?

Mortgage porting means moving your current mortgage from one property to another. You keep your existing interest rate, term, and lender, but the mortgage is applied to your new home instead of your old one.

Porting is most common with fixed-rate mortgages, though some lenders may allow it with variable-rate products. Not all mortgages are portable, so it is important to check your terms before making plans.

When Mortgage Porting Makes Sense

Mortgage porting can be a smart move if:

• You have a low interest rate you want to keep for the remainder of your term
• You are moving before your term ends and want to avoid prepayment penalties
• Your new home’s mortgage amount is similar to or greater than your current balance
• Your lender offers competitive porting options and is willing to approve your new purchase

The Steps to Port Your Mortgage

1. Review your mortgage terms
   Check your mortgage agreement or speak to your broker to confirm your mortgage is portable and understand any restrictions.
2. Apply for approval on the new property
   Even though you already have a mortgage, your lender will need to approve the new property and recheck your income, credit, and debt levels.
3. Align your closing dates
   To complete a port, the sale of your current home and the purchase of your new home usually need to close within a specific time frame, often between 30 and 90 days.
4. Adjust for differences in mortgage amount
   If your new home requires a larger mortgage, you may need to take a “blend and extend” option, which combines your existing rate with the current market rate for the additional funds.

Pros and Cons of Mortgage Porting

Benefits

• Avoid or reduce prepayment penalties
• Keep your existing interest rate if it is lower than current rates
• Stay with a lender you already know and trust

Drawbacks

• Limited time frames to align sale and purchase
• You still need to requalify with your lender
• Not all mortgages are portable, and terms may vary by lender

Why Work With Canadian Mortgage Professionals for Porting

Mortgage porting can be a valuable money-saving strategy, but it is not always the best choice for every situation. Our team can:

• Review your mortgage terms to confirm portability
• Compare porting against breaking and securing a new mortgage to find the most cost-effective option
• Coordinate timing and paperwork to meet lender deadlines
• Explain all conditions so there are no surprises along the way

Our goal is to ensure your move is as seamless and financially smart as possible.

Final Word

If you are planning to move before your mortgage term is up, porting could help you keep your current rate and avoid expensive penalties. The key is knowing whether it is the right fit for your situation and working with a broker who can guide you through the process.

[email protected]
403-509-2434
www.canadianmortgagepro.com
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