StreetSide Developments Blog

Is Porting Your Mortgage Right For You?

Posted on April 11, 2017

Is Porting Your Mortgage Right For You? Couple imageIf you're a homeowner looking to downsize, you'll need to explore your mortgage options from old house to new home. But what are your choices if you're already locked into your current mortgage? Porting might be the perfect option for you. 

What is Mortgage Portability?

In short, mortgage portability means you take your existing mortgage and carry it with you to your new home. This is good news if you have a great interest rate on your current home because you can take it with you. In the case of downsizing, in particular, there are a couple of points discuss with your broker. 

How Does it Work? 

Firstly, you'll need to check if you are able to port. This option varies by lender, and your broker will be able to tell you which lenders allow it and which don't. 

Secondly, you'll want to discuss if it is, in fact, the best idea to port your mortgage. The broker can give you an idea of current mortgage rates versus your old one, and help you determine if porting is the financially sensible option.

If your mortgage is portable, you can discuss bringing the exact same mortgage rate to your new home. You have signed a contract with your bank saying you will pay back said amount and they agree to port it over. This has its benefits as we mentioned because you get to keep your old mortgage rate, which may be better than what is currently being offered.

In the event your mortgage isn't portable, you will have to pay the penalty that comes with breaking your mortgage early. In this case, your lender can advise you as to the best interest rates when seeking a mortgage for your new home. 

Is Porting Your Mortgage Right For You? Seesaw imagePorting Pros and Cons


  • There is a possibility you can keep an interest rate that is now unavailable. 
  • Little to no penalties for those downsizing
  • Option to change your mortgage rate by blending the two rates together


  • Your mortgage may not be portable in which case you will have to pay the full amount to break it. 
  • If you are downsizing you may have to make a prepayment on your old mortgage before porting over. 
  • Porting only makes sense if your old rate is better than the new one offered. 

If you're looking to simplify your life by transitioning to a more affordable, low-maintenance property, porting your mortgage may be the perfect option for you. Talk to your broker today for further details on this and other great mortgage alternatives to help you achieve your downsizing dreams.

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Photo credits: couple, seesaw
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Topics: downsizing, mortgage & financial

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