Short answer
No. Mortgage-insurance portability may allow an eligible insured loan to carry insurance treatment to a replacement property. Contract portability is the lender’s permission to move your mortgage terms. One can be available while the other fails.
Why this becomes a closing problem
A client paid a default-insurance premium on the first purchase and assumes the old lender, rate and insurance will all transfer automatically. The insurer, lender, loan increase, property and timing each need separate approval.
A practical example
You sell an insured home and buy a higher-priced property. The lender may submit a portability request to the insurer and request insurance only on the increased loan amount, depending on eligibility. That does not prevent the lender from rechecking income, credit, debts, property condition and closing dates.
How the lending routes may differ
- Insured A route: ask the lender to confirm both contract portability and insurer portability, including any premium on increased funds.
- Conventional A or alternative/B route: may be considered if the new loan has at least 20% equity or the insured route does not fit, subject to that lender’s policy.
- MIC or private lender: insurance portability generally is not the solution; these are separate equity-based or short-term contracts.
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
- Who insured the original mortgage?
- Does the insurer’s permitted timing match the lender’s porting window?
- Is there an insurance premium on the increased loan?
- Does the new property meet both lender and insurer requirements?
Rajiv’s practical view
Have your broker verify the mortgage contract and the insurance certificate as two separate files. CMHC material applies to CMHC-insured transactions, not every conventional, alternative, MIC or private mortgage.
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.
Continue your research
Review renewal and switching guidance · Review closing-problem guidance · Explore the Mortgage Knowledge Centre
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.
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Rajiv Verma, Mortgage Broker · Ontario