Can I port my Canadian mortgage to a less expensive home?

Yes, you can port to a less expensive home, but the full mortgage balance still needs to be repaid. Your new home only needs to support the ported balance. Some lenders may apply a partial penalty if the ported balance is less than your original balance. Check your mortgage terms carefully.

What is a blended and extended mortgage in Canada?

Blend and extend combines your existing rate with the new top-up amount into a single blended rate, and potentially extends the mortgage term. Watch whether your amortization is being reset, which would increase total interest paid significantly over the life of the mortgage.

Can I port a variable rate mortgage in Canada?

Variable rate mortgages are generally not portable in Canada. Most variable rate products do not include a portability feature. If you have a variable rate and want to move, you typically must break the mortgage (3 months' interest penalty — much less than IRD for fixed) or convert to a fixed rate before porting.

Canadian Mortgage Portability Calculator

Calculate whether porting your existing Canadian mortgage saves money compared to breaking it and getting a new mortgage at today's rates. See your blended rate when buying a more expensive home, estimate the IRD penalty for breaking, and understand the eligibility risks and timing requirements for porting. All figures in CAD.

Current Mortgage Balance

Current Mortgage Rate

Months Remaining in Term

months

New Home Price

Down Payment on New Home

Current Market Rate

Remaining Amortization

years

Porting saves money over breaking

CA$2,039/mo

Blended rate: 2.84% | Ported: CA$350,000 at 2.5% | Top-up: CA$50,000 at 5.2%

Portable Balance

CA$350,000

Kept at 2.5% rate

Top-up Needed

CA$50,000

At market rate 5.2%

vs Breaking (5yr cost)

Save CA$55,916

vs full break and new mortgage

Estimated Break Penalty

CA$26,250

IRD or 3-months interest, whichever higher

Advanced

How Porting Works, Port + Increase & Port vs Break Analysis

Mechanics of porting, blend and extend calculation, when to break vs port

Porting allows you to transfer your existing mortgage — including its rate — to a new property when you move. You keep your current rate on the ported balance, avoiding the IRD penalty for breaking your mortgage early.

Sell your current home

Your existing mortgage must be discharged when you sell. Porting does not mean the mortgage stays on the old property — it means you carry the terms to the new one.

Apply to port to new property

Your lender re-qualifies you under current stress test rules. Even though you have had the mortgage before, you must pass affordability at the qualifying rate (contract rate + 2%, min 5.25%). If you fail the new stress test, you cannot port — even with a great rate.

Port the balance at your rate

Up to CA$350,000 is carried at 2.5% — your existing rate. Any additional borrowing is at today's market rate of 5.2%.

Two-loan structure or blend

Lenders handle the mechanics in two ways: (a) two separate loans on the same property — one at old rate, one at new rate; or (b) a blended rate that combines both into one payment. The blended rate is a weighted average.

Close sale and purchase simultaneously

Most lenders require same-day (or very close) closing of the sale and purchase to avoid a gap where the mortgage is technically discharged. This requires careful coordination with your lawyer.

Pro

Porting Timeline, Eligibility Risks & Interprovincial Costs

Critical timing requirements, what can go wrong with eligibility, cross-province porting costs

Canadian mortgage porting has strict timing requirements that vary by lender. Missing the window means losing the port and paying the full penalty.

Lender Port Fee

Big 5 Banks (RBC, TD, BMO, Scotiabank, CIBC)

Window: 30–120 days

Gap between sale closing and purchase closing. Most banks allow 30 days; some allow up to 120 days with approval.

Monoline Lenders (MCAP, First National, etc.)

Window: 90 days

Generally 90 days between sale and purchase. Monoline lenders often have stricter requirements.

Credit Unions

Window: 30–60 days

Most credit unions are more restrictive on timing. Confirm with your specific credit union.

Critical: The porting window starts from your sale closing date, not your listing date. If your purchase closes more than 30–120 days after your sale closes (depending on lender), you cannot port and must pay the full IRD penalty. When coordinating a sale and purchase, confirm your lender's exact porting window before signing purchase agreements.

How to Use This Canadian Mortgage Portability Calculator

Enter your current mortgage balance, your current rate and months remaining in your term, then enter the new home price and down payment. The calculator shows how much of your mortgage can be ported at your existing rate, the blended rate when additional borrowing is needed, and the 5-year cost comparison against breaking the mortgage and getting a new one.

What Is Mortgage Portability in Canada?

Keep your rate: When you move, you can transfer your existing mortgage — including its interest rate — to your new home instead of breaking the mortgage and incurring an IRD penalty
Re-qualify required: Even though you already have the mortgage, you must pass the current stress test on the new property
Top-up at market rate: If your new home costs more, the additional borrowing is at today's market rate — creating a blended rate
Timing is critical: Most lenders require the sale and new purchase to close within 30–120 days of each other

Blended Rate Calculation Explained

When you port to a more expensive home, you end up with two loan components — your existing balance at the old rate and the top-up at the current market rate. The blended rate is a weighted average.

Blended Rate = (Ported amount × Ported rate + Top-up × Market rate) ÷ Total new loan

Example: Porting $350,000 at 2.5% + $150,000 top-up at 5.2%
Total loan: $500,000
Blended rate: ($350,000 × 2.5% + $150,000 × 5.2%) ÷ $500,000
= ($8,750 + $7,800) ÷ $500,000
= $16,550 ÷ $500,000
= 3.31% blended rate

vs Breaking entirely: $500,000 at 5.2% = much higher monthly payment

IRD Penalty vs Porting: The Real Decision

The core question when moving homes in Canada is: is it cheaper to port your existing mortgage or break it and get a new one? The answer depends on the size of the IRD penalty versus the benefit of today's market rate versus your locked-in rate.

Example: $350,000 mortgage at 2.5%, 30 months remaining

Scenario	Port	Break + New Mortgage
Penalty	$0	$14,000 (estimated IRD)
New loan total	$500,000	$500,000
Rate	3.31% blended	5.2% market
Monthly payment	$2,450	$2,980
5-year total cost	$147,000	$192,800
Winner	Porting saves $45,800 over 5 years

In the post-2022 rate environment, most Canadians who locked in low rates (2020–2022) benefit significantly from porting when moving.

Frequently Asked Questions

Yes, you can port to a less expensive home, but the full mortgage balance still needs to be repaid. Your new home only needs to support the ported balance — but you must repay any difference between the ported amount and the purchase price from your sale proceeds or down payment. Some lenders may apply a partial penalty if the ported balance is less than your original balance, as the difference is technically being "prepaid." Check your mortgage terms.

The porting window varies by lender: most major banks allow 30–120 days between your sale closing and purchase closing. Some monoline lenders allow up to 90 days. If your purchase closes outside this window, you cannot port and must pay the full early payout penalty (typically the IRD or 3 months' interest, whichever is higher). Always confirm your lender's specific window before committing to purchase dates.

Yes. Even though you already hold the mortgage, your lender will reassess your income, credit, and the new property when you apply to port. You must pass the current stress test (your rate +2% or 5.25%, whichever is higher). If your circumstances have changed since you first got the mortgage — lower income, new debts, credit issues — you may not qualify to port. A new appraisal on the purchase property may also be required.

Blend and extend is a specific product where the lender combines your existing rate with the new top-up amount into a single blended rate, and potentially extends the mortgage term. This is different from a pure port — the term resets from the blend date. Blend and extend can be convenient (one payment, one rate) but watch whether your amortization is being reset, which would increase total interest paid over the life of the mortgage.

Variable rate mortgages are generally not portable in Canada. Most variable rate products do not include a portability feature — check your original mortgage agreement carefully. If you have a variable rate and want to move, you typically must break the mortgage (3 months' interest penalty for variable — much less than IRD for fixed) or convert to a fixed rate before porting. The lower penalty on variable makes breaking more affordable than for fixed rates.