Ontario mortgage help
Porting a mortgage in Canada
A portable mortgage may let you transfer an existing balance, rate, and terms to another property, but lender approval, timing, property review, and amount differences still apply.
What to do first
Check the mortgage contract and ask the lender whether the mortgage and intended transaction qualify for a port.
Confirm the permitted time between the sale and purchase closings and the documents required before each closing.
Ask how the lender handles borrowing more, borrowing less, or changing the amortization.
Obtain written estimates for any penalty, blended rate, legal work, appraisal, discharge, and registration costs.
Important considerations
Portability is not automaticThe mortgage, borrower, new property, timing, and requested amount must meet the lender's rules and approval requirements.
A smaller replacement mortgage may create a penaltyIf less financing is required, the portion not transferred may be treated as a prepayment under the contract.
Additional funds may have a different rateWhen more money is required, the lender may blend the existing rate with a current rate or use another structure.