How a port works
The existing balance and rate move to the new home. If you need more money, the additional amount is blended at current rates, producing a single weighted rate across the whole mortgage.
Timing rules matter
Lenders allow a limited number of days between the sale closing and the purchase closing. Miss the window and the port dies, and you pay the penalty.
- Confirm the lender's port window before setting closing dates
- You must requalify on income and credit
- The new property has to meet lender guidelines
- Some products are not portable at all - check your agreement
Port versus break and switch
Sometimes paying the penalty and taking a lower market rate beats porting an older, higher rate. The comparison is arithmetic: penalty cost against interest saved across the remaining term.
Start early
Bring the port up before you list, not after your offer is accepted. Requalifying takes documents, and a surprise there changes what you can buy.
Frequently asked questions
- Do I requalify to port?
- Yes. Income, credit, and the new property are all reviewed.
- Can I increase the amount?
- Usually, with the new money blended at current rates.
- What if I buy before I sell?
- Bridge financing can cover the overlap while the port completes.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.