Can I transfer a mortgage to a new property?
Can you take your current mortgage with you when you move in Georgetown, Ontario — and keep your rate, term, and low payments? Read this first: transferring a mortgage is possible, but only if you know the steps, the lender rules, and how to avoid surprise costs.
Quick, blunt answer
Yes — many Canadian mortgages are portable. That means you can move your mortgage from your current home to your new property in Georgetown without breaking the mortgage and paying heavy penalties. But portability isn’t automatic. Lenders set rules. You must qualify for the new property. And if the new home costs more, you’ll need extra financing.
This guide tells Georgetown home sellers exactly how mortgage portability works, what to expect, how to plan your closing dates, and how to use portability to save money.
Why this matters for Georgetown sellers
If you sell a house in Georgetown and buy another, the last thing you want is a surprise mortgage penalty or a higher rate. Porting a mortgage can preserve a low interest rate and a favorable term. That can save you thousands over the life of the loan.
Local insight: Georgetown’s market moves fast. Listing, negotiating, inspections — all on tight schedules. If you know how mortgage portability works, you control timing. If you don’t, you risk rushed financing, bridge loans, and unnecessary costs.
Key terms you must understand
- Mortgage portability: Moving existing mortgage terms (rate, remaining balance, and remaining amortization) from the home you sell to the home you buy with the same lender.
- Top-up: When the new property costs more than the mortgage balance you’re porting, you borrow extra money from the lender.
- Blend-and-extend (blend/extend): Lender mixes your existing rate with a new rate for the extra amount or remaining mortgage and offers a new term.
- Assumable mortgage: A buyer takes over the seller’s mortgage. This is different from porting because the buyer replaces the seller as borrower.
- Prepayment penalty / break cost: Fee charged if you break a closed mortgage instead of porting it.
Step-by-step: How to port a mortgage in Georgetown (do this in this exact order)
- Contact your lender before listing. Ask if your mortgage is portable and get the lender’s portability rules in writing. Some mortgages are portable only under certain conditions.
- Confirm time limits. Lenders often require that the purchase and sale close within a specific period (commonly 30–120 days). Put these timelines in writing.
- Run numbers before you list. Know your mortgage balance, interest rate, amortization, and how much equity you’ll have after the sale.
- Get conditional pre-approval for the new property. Even if you’re porting, the lender will underwrite your new purchase. Get pre-approval to avoid surprises.
- If the new property costs more, decide your strategy:
- Top-up: Ask lender for a top-up to cover the price difference and closing costs.
- Blend-and-extend: Lender may mix rates on the existing balance and the new money.
- Second mortgage: Use a second lender for the extra amount.
- Align closing dates with your buyer’s closing. Porting works best when sale and purchase closings occur on or about the same day.
- Arrange bridge financing if needed. If timings don’t match or you need temporary funds, a bridge loan can fill the gap. Understand bridge interest rates and fees.
- Finalize paperwork with your lawyer and lender. Your lawyer handles title transfers, discharge of the old mortgage (if required), and registration of the new mortgage.
What lenders check when you port your mortgage
- Income and credit: Lenders will re-verify your income and credit score.
- Property value: The bank will appraise the new property.
- Debt service ratios: Your gross debt service (GDS) and total debt service (TDS) ratios must qualify for the new property.
- Terms and conditions: Some closed mortgages have portability with conditions; others don’t.
Common money traps and how to avoid them
- Surprise break fees: If your mortgage isn’t portable, you’ll pay a break fee. Avoid this by confirming portability in writing before listing.
- Price gap: If your new home costs more and you can’t get a top-up, you may need a second mortgage or larger down payment. Get quotes early.
- Misaligned closings: If you sell before you buy, you may need temporary housing or bridging. Negotiate closing dates carefully and plan contingencies.
Practical Georgetown examples (real, simplified numbers)
Example A — Same price, same lender
- Current mortgage: $400,000 at 2.5% with 18 years amortization
- New house price: $400,000
Result: Port mortgage, keep rate and amortization. Minimal paperwork and no break fee.
Example B — New home costs $75,000 more
- Current mortgage to port: $350,000
- New purchase price requires $425,000 mortgage
Result options: - Request a $75,000 top-up from same lender. Lender may offer blend-and-extend on the extra amount.
- If lender refuses to top-up, arrange a second mortgage or larger down payment.
Example C — Mortgage is not portable
- Current mortgage has no portability clause. Breaking it now incurs a penalty of $10,000.
Result: Compare penalty vs. market benefit of a lower rate on a new mortgage. Don’t guess — get the exact break fee from the lender.
Timing strategy for Georgetown sellers
- Aim to have a firm purchase agreement before listing, if possible. That minimizes the risk of being without a home.
- Use conditional offers with realistic closing windows aligned to your lender’s portability period.
- If you expect the new home to be more expensive, line up top-up approval early.
When portability is NOT the best move
- New mortgage rates are significantly lower than your current rate and save more after paying a break fee.
- Your lender’s top-up terms or blend-and-extend are unfavorable compared to market options.
- You want a different mortgage structure (shorter amortization, different payment schedule).
How a local realtor and mortgage specialist team up to protect your sale
A realtor who knows lenders — and a mortgage broker who knows portability — will keep closings aligned, request portability in writing, and negotiate bridge financing if needed. That reduces risk and ensures the selling process in Georgetown runs smoothly.
Call to action — a practical offer
If you’re selling in Georgetown and want to move without paying avoidable mortgage penalties, call me. I’ll coordinate with lenders and your lawyer to map the exact costs, get written portability confirmation, and time the closings to protect your equity.
Contact: Tony Sousa, Local Georgetown Realtor
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
FAQ — The answers Georgetown home sellers need
Can any mortgage be transferred to a new property?
No. Many Canadian mortgages are portable, but not all. Check your mortgage contract and ask your lender. If portability isn’t available, find out the exact penalty for breaking the mortgage.
How long does it take to port a mortgage?
The administrative part is fast, but lender underwriting and appraisal add time. Plan for 2–6 weeks between conditional approval and firm closing. Align sale and purchase closings within your lender’s portability window.
What if the new house is pricier than my mortgage balance?
You have options: request a top-up from your lender, take a second mortgage, or increase your down payment. Top-ups may be blended with your current rate or given at a new rate.
Will my lender approve porting if my income changed?
Lenders re-verify income and credit. Significant negative changes can lead to refusal. Get pre-approval first to minimize surprises.
Are assumable mortgages the same as portable mortgages?
No. Assumable mortgages let a buyer take over your mortgage. Portability keeps you as the borrower and transfers your mortgage to your new purchase.
Do I need a lawyer to port a mortgage?
Yes. Your lawyer handles discharge and registration, ensures funds move correctly, and protects your legal interests.
What if the lender says no to top-up?
Get alternatives: a mortgage broker may find a lender willing to top-up or offer a second mortgage. Also compare break-fee cost vs. refinancing with another lender.
Will portability save me money?
Often yes — especially if your current rate is lower than today’s rates. But every situation differs. Get exact numbers on penalties, top-up terms, and new rates before deciding.
What documents will the lender ask for?
Typical documents: recent pay stubs, proof of down payment, recent mortgage statement, IDs, and property information. Expect an appraisal on the new property.
What’s the smartest first move?
Call your lender and get portability rules and penalties in writing. Then contact a local realtor and mortgage broker. Don’t list until you have a clear plan.
Final word
Porting a mortgage can be the simplest, cheapest path to your next home — but only if it’s handled correctly. Georgetown sellers who plan early, confirm portability in writing, and coordinate closing dates avoid costly surprises.
If you want a clear, written plan that shows exact costs, timelines, and lender conditions for your move in Georgetown, email me at tony@sousasells.ca or call 416-477-2620. I’ll walk you through the numbers and coordinate with lenders so you keep more of your equity.
