Rule

Can I port my mortgage when I move and avoid the penalty?

Short answer

Possibly, but a portable mortgage is not a guaranteed transfer. Your current lender normally has to approve you again, approve the new property and complete both transactions inside its permitted timing window. If any part fails, the mortgage may be paid out and the contract penalty may apply.

Why this becomes a closing problem

You sold your home believing the mortgage would move with you. Then the lender asks for updated income, a new appraisal or a closing-date change. The client discovers too late that ‘portable’ described a feature, not an unconditional approval.

A practical example

Assume you have $420,000 remaining at an attractive fixed rate and buy another home. The lender may let you move that balance to the new property, but it will still review your current employment, credit, debts, sale agreement, purchase agreement and new property. A job change or unacceptable property can stop the port even though every payment on the old mortgage was made on time.

How the lending routes may differ

  • A lender: often the best starting point when the existing contract is portable and the borrower and property still meet policy.
  • Alternative/B lender: may help if income or credit no longer fits the existing A lender, but moving away can trigger the old lender’s penalty.
  • MIC or private lender: may cover a short closing or qualification gap when equity and a credible exit exist; it does not preserve the old contract automatically.

Policy boundary: Porting, bridge periods, qualification, fees and property acceptance are lender and contract decisions. A regulator’s consumer information does not require every lender to approve the same structure.

Questions to ask before committing

  • Is my exact mortgage product portable?
  • How many days may pass between the sale and purchase closings?
  • Will the lender refund a penalty after the port completes, and by what deadline?
  • Do I need a new appraisal and full income qualification?

Rajiv’s practical view

Request the lender’s written porting conditions before making a firm purchase commitment. Compare the port with a complete outside-lender option, including the penalty and all fees.

Before making a firm offer or changing closing dates, confirm the full structure in writing. A pre-approval or verbal discussion is not the same as final approval of the borrower, property, sale, bridge amount and lawyer instructions.

Moving dates or mortgage terms do not line up?

Share your sale date, purchase date, existing mortgage balance and the problem you are trying to avoid. Rajiv can compare the current lender’s port with A, alternative/B, MIC or private options where appropriate.

Request a mortgage strategy session

Rajiv Verma, Mortgage Broker · Ontario

Sources and context

Read the primary source

Source checked
2026-09-08
Effective
2026-09-08
Next review
2026-12-08
Assumptions and limitations
General Ontario education. Portability, bridge financing, qualification, property acceptance, fees and timing vary by lender, insurer and contract. Examples are illustrative, not approvals, legal advice or quotes.

Source checks are snapshots, not a guarantee that rules have remained unchanged. Individual circumstances and lender policies vary.

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