Can I transfer a mortgage to a new property?

Can I transfer a mortgage to a new property?

Want to move and keep your mortgage — without paying a fortune? Here’s exactly how to transfer a mortgage to a new property and protect your rate.

Quick answer: yes — sometimes

You can transfer a mortgage to a new property when your lender allows mortgage portability or when the loan is assumable. That sounds simple. Reality is: it depends on your mortgage type, lender rules, equity, and timing.

Keywords: Financing & Mortgages, transfer mortgage, portable mortgage, mortgage portability, mortgage assumption, mortgage refinance.

When you can transfer a mortgage

• Portable mortgage: Many Canadian and U.S. lenders offer portability. It lets you move your existing mortgage and rate to a new home. You keep the term and interest rate. You avoid early-break penalties.
• Assumable mortgage: Some government-backed loans and older products are assumable. The buyer takes over payments and the rate.

When you can’t (or shouldn’t)

• Lender doesn’t allow portability. Some lenders deny portability or limit it to specific products.
• Insufficient equity. If the new property costs more than the old one, you’ll need extra funds or a second mortgage.
• Required requalification. Lenders often recheck income, credit, and debt ratios before approving portability.

Practical steps to transfer a mortgage to a new property

1. Call your lender early. Ask if your mortgage is portable. Ask about the process, fees, and timeline.
2. Get a payoff statement and portability terms in writing. Confirm if you keep the exact rate and term.
3. Compare costs. Calculate penalties, closing costs, appraisal fees, and any new mortgage insurance.
4. Re-qualify or top-up. If the new house costs more, ask about topping up the mortgage or adding a second mortgage. Expect credit checks.
5. Lock dates. Align sale closing and purchase closing to avoid bridging credit or interim financing.
6. Use a pro. A mortgage broker or experienced real estate agent reduces surprises and accelerates approvals.

Real-world tradeoffs — what most agents don’t tell you

• Saving your rate can beat current market rates, but topping up can raise your amortization and monthly payment.
• Portability approvals can take weeks. Don’t assume it’s instant.
• Lenders may require an appraisal and legal changes. Factor those costs.

Bottom line: be deliberate

Transferring a mortgage to a new property can save you thousands in interest and penalties — if you plan. If the lender allows mortgage portability or your loan is assumable, act fast, get terms in writing, and compare alternatives like refinancing.

For a clear plan tailored to your situation, contact Tony Sousa. He’s a local mortgage-savvy realtor who navigates lenders, timelines, and negotiation so you avoid costly mistakes.

Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca

Want a mortgage transfer checklist or a quick qualification call? Reach out now.