What is mortgage porting?

What is mortgage porting?

What is mortgage porting?



Mortgage porting is a term commonly used in the real estate industry, but many people are unfamiliar with its meaning and implications. In simple terms, mortgage porting refers to the process of transferring an existing mortgage from one property to another. This can be a beneficial option for homeowners who are looking to move but want to retain their current mortgage terms. In this article, we will dive deeper into the concept of mortgage porting, exploring its benefits, requirements, and potential drawbacks.

Understanding Mortgage Porting

Definition: Mortgage porting involves transferring an existing mortgage loan from one property to another, allowing homeowners to maintain their current mortgage terms, including interest rates, repayment period, and other conditions.

Benefits: One of the primary advantages of mortgage porting is the ability to retain favorable mortgage terms. If a homeowner has a low-interest rate on their existing mortgage, they can avoid higher rates that may be offered on new mortgages. Additionally, porting can save homeowners money by avoiding penalties associated with breaking an existing mortgage contract.

Requirements: Mortgage porting is not available for all types of mortgages or in all situations. To be eligible for mortgage porting, homeowners must meet certain requirements set by their lender. These requirements may include having a good credit score, maintaining a stable income, and ensuring that the new property meets the lender’s criteria.

Process: The process of mortgage porting typically involves contacting the existing lender and informing them of the intention to transfer the mortgage to a new property. The lender will evaluate the new property and determine if it meets their criteria. If approved, the homeowner will need to complete the necessary paperwork and pay any associated fees.

Potential Drawbacks

While mortgage porting can be a beneficial option for some homeowners, there are potential drawbacks to consider:

Limited Options: When porting a mortgage, homeowners are limited to the offerings of their current lender. This means they may miss out on more competitive rates or better terms available from other lenders.

Property Evaluation: The new property must meet the lender’s criteria for mortgage porting. If the property does not meet these requirements, the homeowner may not be able to transfer the mortgage and may need to seek alternative financing options.

Additional Costs: While mortgage porting can save homeowners from penalties associated with breaking a mortgage contract, there may still be additional costs involved, such as legal fees, appraisal fees, or administrative charges.


Mortgage porting is a valuable option for homeowners who want to move but wish to retain their current mortgage terms. By transferring an existing mortgage to a new property, homeowners can avoid higher interest rates and penalties associated with breaking a mortgage contract. However, it is important to consider the limitations and potential costs involved in the process. Homeowners should carefully evaluate their options and consult with their lender to determine if mortgage porting is the right choice for their specific situation.


– Investopedia: www.investopedia.com
– The Balance: www.thebalance.com
– MoneySense: www.moneysense.ca