Take Your Mortgage With You: How Portable Mortgages Make Moving Easier

Understanding Portable Mortgages

When you’re planning to sell your current property and purchase a new one, a portable mortgage can be a powerful tool. This option allows you to transfer your existing mortgage terms—rate, balance, and amortization—to your next home, potentially saving on penalty fees and still benefiting from a favorable interest rate.

How Portability Works

Porting a mortgage isn’t automatic—you’ll need lender approval. Generally, the process involves:

1. Notifying your lender of intent to port at least 30–60 days before closing.
2. Undergoing a credit check and income verification for the new property.
3. Confirming the new home’s appraisal value meets lender requirements.
4. Completing paperwork to adjust your mortgage balance if you need to borrow extra.

Advantages & Considerations

• Pros: Avoid early repayment penalties, lock in existing rate, and simplify the refinance process.
• Cons: Might need a top-up if the new home costs more, or pay interest rate differential.
• Fees: Some lenders charge a portability fee—usually a small percentage of the mortgage balance.
• Approval: Subject to credit score, income stability, and property condition.

“Borrowers who port their mortgage can save thousands in penalty fees compared to breaking their contract.”

Is Porting Right for You?

Next Steps

1. Compare lender portability offers and fees.
2. Consult with a mortgage advisor to project costs vs. benefits.
3. Gather income documents and request a pre-approval transfer.
4. Finalize sale and purchase timelines to align closings seamlessly.

Porting can simplify your move and keep you on track with your financial goals.

With the right planning, a portable mortgage may be the solution to smooth out your real estate transition and preserve favorable financing terms.

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