Can I port my mortgage to a new home?
Want to move and keep your mortgage rate? Here’s exactly how to port your mortgage to a new home in Georgetown, ON — and avoid costly mistakes.
Quick answer: Can you port your mortgage to a new home?
Yes — if your mortgage is portable. Porting lets you move your existing mortgage (rate and terms) from your current property to a new property when you buy. For homeowners and sellers in Georgetown, Ontario, porting can save thousands in interest and penalties. But there are rules, deadlines, and qualification steps to follow. Do this right, and you keep the rate you locked in. Do it wrong, and you pay penalties or higher rates.
Why porting matters for homeowners and sellers in Georgetown, ON
Georgetown’s market moves. Inventory tight? Buyers bid. Rates move. If you sold under a low-rate mortgage, porting means you don’t have to pay to break that mortgage or chase a new rate that’s higher. For sellers and homeowners in Georgetown, ON, porting reduces transaction cost and risk — especially when interest rate spreads are large.
Porting is not automatic. It’s a tool. Use it when it saves money and fits your timeline.
The plain steps to port a mortgage (no fluff)
- Read your mortgage agreement. Look for the word: portable or portability. Check exact conditions.
- Call your lender and tell them you want to port. Ask for the lender’s porting process and deadlines.
- Confirm the closing dates for selling and buying. Porting is date-sensitive.
- Get pre-approved on the new property using the same lender. Lenders re-qualify borrowers before approving porting.
- Determine funding gap. If you need more money for the new purchase, you may apply for a “port plus” or a new blended mortgage.
- Coordinate closings. Ensure the lender coordinates discharge on the old property and registration on the new one.
- Sign the documents and close both transactions as scheduled.
Key things lenders check
- Your current income and credit still qualify.
- Appraisal or valuation of the new property.
- Closing dates align so mortgage transfer is feasible.
- Outstanding mortgage balance and whether you need extra funds.
If any check fails, the lender can refuse the port — or require you to break the mortgage and re-mortgage at current rates.
Porting vs mortgage assumption — know the difference
- Porting: You take your existing loan and move it to a new property while remaining the borrower. You keep the original rate and terms.
- Assumption: Another buyer legally takes over your mortgage. This is less common in Canada; most Canadian mortgage contracts offer porting rather than full assumptions.
For Georgetown sellers, porting keeps the advantage. Assumption transfers responsibility to another buyer — rarely the route for local sellers.
What if the new home costs more? Blend, extend, or top up
Many buyers need to add funds when they move to a more expensive house. Options:
- Port + Top-up: Port your current mortgage and add a new loan amount for the difference. The top-up may carry a different rate or blended rate.
- Blend and extend: The lender blends your current rate with current market rates for the new funds, then extends terms. This usually raises your blended rate but less than starting a brand new mortgage.
- New mortgage: If porting isn’t possible, you can pay the penalty to break your mortgage and take a new mortgage.
Ask for a written estimate: compare total costs of porting + top-up vs breaking mortgage vs new mortgage.
Penalties, discharge fees and math you must run
If you can’t port, you’ll face a penalty. In Canada, penalties differ by mortgage type (closed fixed vs variable). Typical penalty: an interest rate differential (IRD) for fixed-rate mortgages. Variable-rate penalties often equal a few months’ interest.
Calculate the total cost to decide:
- Penalty to break now
- New mortgage interest difference over remaining years
- Legal and discharge fees
- Any appraisal or admin charges for porting
If penalty + higher mortgage cost > benefit of new loan or porting, you know the direction.
Timelines and critical dates for Georgetown moves
Porting needs coordination between your sale closing and purchase closing dates. A common approach:
- Ideal: Buy and close on new home the same day you close the sale.
- If sale closes before purchase: arrange temporary bridge financing or short-term mortgage advance.
- If purchase closes before sale: you might need interim financing or a mortgage assumption by another party to avoid being double-mortgaged.
Georgetown closings are often within 30–60 days. Start the porting conversation 60–90 days before closing to avoid surprises.
Local considerations for Georgetown, Ontario
- Market volatility: Georgetown can be competitive. If you’re selling and buying close together, porting avoids rate shocks between dates.
- Lender presence: Local banks and credit unions in Georgetown have specific underwriting norms. Local lenders may offer smoother porting for repeat clients.
- Property types: Some older homes or non-standard properties need deeper appraisals. That can delay porting approval.
- Real estate agents: A local agent who coordinates dates and lender communication reduces the risk of failed porting. That’s where an experienced Georgetown realtor matters.
Real example — simple math (illustrative)
You have a $350,000 mortgage at 2.5% fixed, 3 years left. You find a Georgetown home that costs $450,000. You need $100,000 more.
Option A — Port + Top-up (blend): blended rate becomes 3.1% on full balance. No break penalty.
Option B — Break and re-mortgage at 4.5%: pay an IRD penalty of $6,000 now, then higher payments for remaining term.
If your analysis shows Option A saves you $X over the next 3 years after factoring admin fees, do Option A.
Get a written comparison from your lender. Numbers don’t lie.
Three no-BS tips to protect your move in Georgetown
- Confirm portability in writing. Don’t rely on a verbal promise.
- Lock your purchase closing date and coordinate with sale closing. Mismatched dates cost money.
- Get a clear cost comparison from your lender: penalty vs port + top-up vs new mortgage. Ask for all numbers in writing.
When porting is the wrong move
- The top-up rate is far higher than current market rates, making the blended rate worse than a new mortgage.
- The lender refuses to port because your new property doesn’t meet lending criteria.
- You need significant funds beyond your mortgage balance and the new rate makes more sense.
Don’t be married to porting. Use it when it’s the best financial move.
How a local expert speeds this up (and saves money)
An experienced Georgetown realtor knows lenders, local appraisers, common title issues, and timing pitfalls. They coordinate sale and purchase closings and push lenders for quick valuations. That saves days — and possibly thousands.
If you’re buying or selling in Georgetown, ON, working with a realtor who understands mortgage porting is not optional. It’s mandatory. Contact an expert to run the numbers and handle the logistics.
Contact for a free porting review (Georgetown homeowners and sellers)
If you want a clear, written analysis of whether you should port your mortgage, break it, or re-mortgage — with local numbers and timelines for Georgetown — reach out. I’ll connect you with lenders, prepare written comparisons, and coordinate closings so you don’t pay extra.
Tony Sousa — Local Georgetown realtor and mortgage-move strategist
- Email: tony@sousasells.ca
- Phone: 416-477-2620
- Website: https://www.sousasells.ca
FAQ — Mortgage porting and financing in Georgetown, Ontario
Q: What does “portable mortgage” mean in Ontario?
A: It means your mortgage contract specifically allows you to move the existing loan from one property to another, keeping the same rate and terms, subject to lender approval.
Q: Can I port a mortgage if I sell before buying?
A: Yes, but lenders need confirmation you’ll buy within agreed dates. If the sale closes first and you haven’t secured a new home, you might need bridge financing.
Q: How long before closing should I start the porting process?
A: Start 60–90 days before closing. That gives time for lender appraisal, qualification, and coordination between solicitor and lender.
Q: Will I have to re-qualify with the lender to port?
A: Yes. Lenders re-check income, credit, and debt servicing to approve porting.
Q: Does porting avoid all penalties?
A: If your mortgage is portable and you port without breaking terms, you avoid break penalties. If the lender can’t port, you may face a penalty.
Q: Can I port only part of my mortgage?
A: Yes. Many lenders allow partial porting — move a portion of the mortgage and pay down or re-mortgage the rest.
Q: What happens if the new home needs a larger mortgage?
A: You can port and top-up, or blended rate options may apply. Compare blended vs new mortgage costs.
Q: How does porting work with CMHC-insured mortgages?
A: CMHC rules may affect portability. Some insured mortgages are portable; others require special handling. Confirm with your lender and insurer.
Q: Who pays the legal and admin fees for porting?
A: Usually the borrower. Expect appraisal fees, legal fees, and possible admin charges. Get a fee list up front.
Q: Is porting common in Georgetown?
A: Yes. Given local market activity and rate swings, many homeowners who buy and sell locally use porting. Having a local realtor who coordinates lenders and closing dates makes the process smooth.
Q: How can Tony help with porting in Georgetown?
A: Tony has local lender relationships, understands Georgetown closing timelines, and will coordinate appraisals, lawyers, and lenders to keep your move on track. Contact Tony for a written porting cost comparison and local strategy.
If you want a precise, no-nonsense cost comparison for your move in Georgetown, email tony@sousasells.ca or call 416-477-2620. Get the numbers. Make the smart move.
