Mortgage Porting in Ontario

Is porting a mortgage a good idea?

When porting makes good sense:

• You have a fixed-rate closed mortgage with a very favourable rate compared to current market rates; by porting you keep that rate for the remaining term instead of breaking the mortgage and possibly paying a large prepayment penalty.
• Your moving timeline aligns well (i.e., you can sell your current home and buy the new home within the lender’s porting window) so you can execute the port smoothly.
• Your income, credit and debt situation remain strong enough to re-qualify for the new mortgage (even though you are porting).

When porting might not make sense:

• Current interest rates are significantly lower than your existing rate. In that case, breaking your mortgage and taking a new one at the lower rate may outweigh the penalty cost.
• You’re moving to a property significantly more expensive, needing a large top-up of funds at today’s (perhaps higher) rate — that could erode the benefit of your old lower rate.
• Your financial/credit situation has changed negatively since you obtained the original mortgage: the lender may decline the port or impose less favourable terms.

Do you need a down payment when porting a mortgage?

When you choose to port your mortgage (i.e., transfer your current loan to a new property) the requirement for a down payment doesn’t disappear — you still must satisfy the minimum down-payment rules that apply to any home purchase in Canada.

For example:

• For a property up to $500,000 you need a 5% down payment; from $500,000 to $1,499,999 the portion above $500,000 requires at least 10%; for $1.5 m+ it’s 20%.
• If you’re using equity from your current home sale as part of the down payment, that’s fine — many borrowers do this when porting.
• If your new purchase closes before the sale of your current home (or you need extra bridging), you may need bridge financing or extra cash to cover the down payment.

The key is coordinating your sale and purchase so the down payment is covered (possibly via proceeds or through bridge financing) and meeting your lender’s criteria.

What are the rules for porting a mortgage?

Portability Clause & Mortgage Product Eligibility

• Not all mortgages are portable. Many lenders restrict portability to fixed-rate closed mortgages. Variable-rate products (or certain “no-frills” deals) may not be portable.
• You must check your original mortgage agreement (or ask your lender) to confirm whether it is portable.

Re-qualification

• Although you are porting, the lender treats the new mortgage as a fresh application in many respects. They will typically verify your income, credit score, debt ratios, and appraise the new property.
• If you are borrowing more than your current mortgage balance (port-and-increase), you will certainly need to meet full qualifying criteria.

Timing / Closing Window

• The sale of your existing home and the purchase of your new property must usually occur within a specific window (commonly 30-120 days) for the port to be valid.
• Some lenders offer “delayed” or “reverse” port options (buy first, sell later) under certain conditions (often with bridge financing).

Loan Amount – Same, Increase, or Decrease

• Straight port: carry the same mortgage principal, rate, and term to the new property.
• Port & increase: you need more funds for the new purchase; you keep the existing balance at the old rate, borrow the additional funds at today’s rate, and often the lender blends the two into a new effective rate.
• Port & decrease: you borrow less on the new property. The portion you don’t port may trigger a penalty for early repayment of that portion.

Property & Insurance Considerations

• Your new property must meet the lender’s standard criteria (type, value, location, condition).
• If your existing loan had default insurance (because you had <20% down), you’ll need to check how that insurance porting or top-up works.

Fees & Penalties

• A successful port often avoids the major prepayment penalty on the amount you carry over. But the lender may still charge admin or appraisal fees.
• If you don’t complete the port within the allowed window, you may lose the ability to port and face conventional penalties.

Are there downsides to porting?

Potential downsides include:

• Missed opportunity for a lower rate: If market rates have dropped since you took your current mortgage, keeping your old higher rate may cost you more in long-term interest than you save on penalty avoidance.
• Tighter timing: The window to close your sale and purchase is limited; if things go off schedule (delayed sale, buyer falls through, financing hiccup) you risk losing the port and triggering penalties.
• Qualification risk: Even though you’re already a borrower, you may still need to requalify. If your credit, debt load or income changed, you might not qualify for the full amount you anticipated.
• Blended or higher rate on additional funds: If you need to borrow more than the amount you have outstanding (port & increase), the extra funds (and perhaps the blended rate) may reduce your overall interest-savings.
• Administrative/insurance quirks: Porting may involve additional appraisals, legal fees, or insurance top-up fees (especially if the mortgage was insured and you are adding funds or moving to a higher value property) that may reduce the financial benefit.
• Less flexibility with product change: When you port, you often stay with the same lender and product. If you were hoping to switch lender, negotiate a new product with more flexibility, or refinance to a new amortization term, that may be harder or more costly.

Do you have to pay a deposit when porting a mortgage?

In the context of a home purchase paired with a mortgage port, yes — there is often a deposit (earnest money) required when making an offer on the new property. This is standard for any home purchase, and the porting doesn’t eliminate that requirement.

Here’s how it plays out:

• When you submit an offer on the new home, you’ll typically need to include a deposit cheque or trust deposit in the purchase contract — this shows good faith and secures the purchase.
• Because you’re coordinating a sale of an existing home and purchase of a new home for a port, you’ll want to ensure you have liquidity or proceeds available for the deposit.
• If your sale of the existing home hasn’t yet closed, and the purchase closes first, you may need bridge financing or to have savings ready, so you don’t jeopardize the deposit. (Many lenders/ brokers warn about this scenario.)
• The deposit is distinct from the mortgage down payment — the deposit funds go toward your purchase price, and then when the mortgage funds at closing, that deposit is applied to the purchase price or down payment as contractually agreed.

How to Port Your Mortgage

Porting your mortgage means transferring your existing home loan – including its current interest rate and remaining term – from your old property to a new one​. This option is typically available when you sell your current home and buy a new home around the same time. The key advantage is that you avoid breaking your mortgage contract and therefore usually avoid hefty prepayment penalties​. In other words, you get to keep your low interest rate (if it’s lower than today’s rates) on your new property, potentially saving thousands in interest.

Key steps to port your mortgage in Ontario:

1. Check Portability: First, confirm that your current mortgage is portable. Most lenders in Canada offer portability on fixed-rate closed mortgages, but many variable-rate mortgages cannot be ported​. Also, some low-rate “no frills” mortgages may not allow porting, so review your mortgage agreement or ask your lender/broker.
2. Plan Your Timing: Lenders impose a time limit to complete the port. You typically have 30 to 120 days (varies by lender) between selling your old home and purchasing your new one​. This window can be tight, so plan your sale and purchase closings strategically. If the dates don’t line up exactly, you may need bridge financing (a short-term loan) to cover the gap.
3. Requalify for the New Mortgage: Even though you’re porting, you must apply for a new mortgage on the new property and meet the lender’s qualifications (income, credit, debt ratios) just as you did originally​. The new home will also need to be appraised and approved by the lender. Porting isn’t automatic – it’s essentially applying for a continuation of your loan on a different home.
4. Determine Your Mortgage Needs: Figure out if your new home requires a larger mortgage, a smaller mortgage, or the same balance. This will determine if you need a straight port, a port-and-increase, or a port-and-decrease (explained below with each lender). If you need to borrow more, your lender will either “blend and extend” your rate or add a second loan segment at the new rate. If you need less, you might have to prepay a portion of your loan (possibly incurring a penalty on that portion, depending on prepayment privileges).
5. Complete the Port: Work with your lender (or better yet, a mortgage broker) to execute the port. Once your old home sale closes, the mortgage is paid off temporarily – often the lender will charge a penalty at this point, but then waive or refund it once your new mortgage on the new property is funded within the allowed timeframe​. Your lawyer will arrange for the new mortgage to be registered on title of the new home. Be prepared to pay standard legal fees and possibly a small processing or appraisal fee on the new mortgage​.

Porting a Mortgage CIBC

CIBC allows most of its personal mortgages to be ported in Ontario, with the exception of its Variable Flex Mortgage (a type of variable-rate product)​. If you have a CIBC fixed-rate closed mortgage, you can port it to a new property and retain the same interest rate and remaining term on your new mortgage​. CIBC’s policy is customer-friendly in that they will waive or reimburse the prepayment charge (penalty) in full or part when you port, since you are not really breaking the mortgage but continuing it on a new home.

Here are CIBC’s porting options and requirements:

• Straight Port: You move your entire remaining mortgage balance to the new home with no changes. The new mortgage will have the same principal balance, interest rate, and term remaining as your old one​. This is the simplest scenario – effectively just transferring security from one property to another.
• Port and Increase: If your new home needs a larger loan, CIBC allows a port with an increase. You keep your existing mortgage balance at the old rate, and borrow the extra amount needed at CIBC’s current rate for a comparable term. These two parts are combined into one mortgage with a blended interest rate that is a weighted average of the old and new rates​. Your term for the entire mortgage will usually match the remaining term of the original loan. This blend-and-extend option lets you top up your mortgage without paying a penalty, and still benefits from your original low rate on the initial balance.
• Port and Decrease: If you’re downsizing and won’t need the full mortgage amount on the new home, you can port a smaller amount. In this case, you’ll be paying down a portion of the mortgage when you sell. CIBC will charge a prepayment penalty on the portion you paid off, but they may waive or refund part of it based on the size of your new mortgage​. The amount you do port keeps the same rate and term as before. Essentially, CIBC rewards you for staying with them by reducing the penalty proportional to the new mortgage balance.
• Delayed (Reverse) Port: CIBC is flexible with timing by offering up to 120 days for a port in certain cases​. A delayed port, also called a reverse port, is when you purchase the new property before your current mortgage is paid off/sold. CIBC will advance the new mortgage up to 120 days before your old one is discharged​.
•  You might need bridge financing for down payment or closing costs in the interim, but this feature means you can still port even if your buy and sell don’t happen on the same day.

Eligibility: To port with CIBC, you’ll need to qualify financially for the new mortgage (income, credit, etc.) and the new property must meet CIBC’s lending criteria (property value, condition, and so on). Porting is available for both new purchases and even if you move the mortgage to another property you already own (as long as that property has no mortgage or line of credit on it currently)​.

Note that CIBC requires the new mortgage to fund within the allowed window (90 days for variable flex replacement​ and generally within 120 days for fixed ports) to refund any penalties.

Prepayment Penalty: If done correctly, a port at CIBC means you don’t actually pay a penalty – any temporary penalty charged is refunded. However, if you cannot complete the port in time or decide not to follow through, the penalty from selling your home remains payable. CIBC’s penalties on fixed mortgages are the greater of IRD or 3-months’ interest, so porting saves you from that cost.

Blend-and-Extend: CIBC does allow blending rates and effectively extending your term in the process of a port-increase. While CIBC’s documentation doesn’t use the phrase “blend-and-extend,” their port and increase achieves a similar outcome – your interest rate is blended and you continue with the remaining term. If you wanted a longer term, you might have to discuss options with CIBC (they might allow converting to a new longer term, but typically the port keeps the same term length). This is a nuanced area where getting advice is valuable.

Turkin Mortgage tip: CIBC’s multiple porting options can be a bit complex to navigate on your own. For instance, deciding whether to blend your rate or how to handle a partial decrease can be confusing. Our experts at Turkin Mortgage can liaise with CIBC on your behalf, ensuring you maximize any penalty waivers and get the most favorable blended rate. We’ll also help you understand the fine print (like that 120-day window) so your port goes smoothly.

Porting a Mortgage RBC

RBC Royal Bank offers portable mortgages and is quite accommodating to borrowers who need to move. If you have an RBC fixed-rate mortgage, you can “port” your existing interest rate and terms to your new home​.

This means if you love your rate, you don’t have to lose it just because you’re moving. RBC allows you to port the mortgage balance and avoid penalties on that amount, as long as you close your new purchase within their required timeframe (often around 90 days, though RBC may discuss timelines case-by-case).

Port and Increase (Blend): RBC acknowledges that when people move, they often upgrade to a more expensive home. If you need a larger mortgage for the new property, RBC will let you add new money to your mortgage and blend your rates. You keep your current mortgage amount at its existing rate, and the extra funds are lent at the current market rate. RBC may either blend these into a single rate or, commonly, they add a second RBC Homeline Plan® segment for the new funds​.

In practice, the result is similar: you get an overall interest rate somewhere in between your old and new rates, yielding a favorable blended rate and lower payment on the new funds than taking a separate new mortgage​. The exact mechanics (single blended mortgage vs. two segments) will depend on RBC’s product offering, but either way, you maintain the benefit of your original low rate on your original balance.

Port and Decrease: If your new home requires a smaller loan, RBC allows a port with a decrease as well. In this scenario, any portion of the mortgage you pay off when you sell could be subject to a penalty. RBC’s policy states that “normal prepayment rules apply” for a port decrease​.

This means you might use your prepayment privilege (e.g. lump-sum payment up to 10-20% without penalty) to cover part of the difference, but if the drop is larger than your allowed prepayment, you’ll pay a penalty on the excess. The remaining balance that you do carry over will continue at the same rate and term. Essentially, RBC won’t charge a penalty on the amount you port, but any non-ported portion is treated like a prepayment.

Avoiding Penalties: For any amount that is ported, RBC does not charge a prepayment penalty​.

You are effectively not breaking that portion of the mortgage. This can save you a significant sum; depending on how much time was left on your term, an IRD penalty could be many thousands of dollars, which porting sidesteps. RBC even provides tools like a prepayment charge calculator to help clients weigh the costs​– a hint that porting is often encouraged if it saves money.

Process and Timing: To port with RBC, you’ll need to apply for a new mortgage approval on the new property (RBC will check that you still qualify and that the property meets their standards). Typically, the sale of your old home and purchase of the new should close within a set window (often 90 days) to make the port seamless. RBC may allow some flexibility; for example, with bridge financing, you could buy first and sell shortly after. It’s important to coordinate with your RBC mortgage specialist to meet any deadlines. RBC charges a processing fee for porting (this may cover things like the appraisal on the new property)​, and you’ll still have legal fees for the new mortgage setup, just as any home purchase financing would.

Blend-and-Extend: RBC does permit a form of blend-and-extend. If you port and increase your mortgage, you might start a new term on the blended mortgage. In many cases, RBC will synchronize the term of the new portion with the old one’s remaining term. However, if you prefer to lock in longer, RBC might allow you to effectively refinance into a brand new term that covers both amounts (this would be more like an early renewal with a blend). According to a NerdWallet example, when you port and blend with RBC or similar lenders, “you’d also start a new term” for the combined mortgage. This detail can be tricky, so it’s something to clarify with RBC. Starting a new term can be advantageous if you want to avoid having to renegotiate in just a year or two, but it also means you’re committing to the blended rate for a longer period.

Turkin Mortgage tip: RBC’s porting process is robust but can be confusing, especially with options like Homeline Plan segments and decisions about term lengths. At Turkin Mortgage, we can help you navigate RBC’s offerings to ensure you make the best choice. We’ll help calculate whether a blend-and-extend with RBC truly saves you money versus other alternatives. Our guidance can be crucial if you’re balancing selling and buying dates or trying to maximize your prepayment privileges on a port decrease. We speak the bank’s language – so you don’t have to.

Port Mortgage Scotiabank

Scotiabank also allows mortgage porting on its residential mortgages in Ontario, with features to accommodate both increasing and decreasing loan amounts. If you have a Scotiabank fixed-rate closed mortgage, you may transfer your remaining balance and term to a new property, or even combine your existing balance with additional funds and extend your term​. In other words, Scotiabank explicitly offers a blend-and-extend option when porting.

Key points on Scotiabank’s porting process:

• Porting Basics: You can port your mortgage to a new home and maintain the same interest rate on the existing balance. If you’re just moving the exact same loan amount over, your rate and remaining term stay intact on the new property (much like other banks’ straight port). This is great if you have a low rate you want to keep until your term ends.
• Blend-and-Extend (Additional Funds): If your new purchase requires borrowing more, Scotiabank will blend your current rate with the rate for the new funds, and in their case, they extend the term as well​.
• For example, if you have 2 years left at 2.5% and you need more money, Scotia might offer to blend that 2.5% with their current rate on the additional amount, and perhaps give you a new 5-year term on the combined mortgage. The new blended rate will fall somewhere between your old rate and the current market rate, based on the proportions. This ensures you don’t lose your favorable rate on the original chunk. Scotia’s documentation describes the new interest rate as “a blending of the rate you were paying… and the rate applicable to the extended term of the new loan and the additional amount.”​. You will have to sign a new mortgage agreement for this, since the term is being extended.
• Port and Decrease: If you need a smaller mortgage for the new home (say you’re downsizing or brought a larger down payment), Scotiabank allows that as well. In this case, after selling your old home, you would only port over the amount needed for the new home. Any portion of your old mortgage that you don’t port is effectively prepaid, which could trigger a penalty. However, Scotiabank, like others, often lets you avoid or reduce penalties if you replace the mortgage concurrently. In fact, Scotia notes that if you pay off your mortgage in full and take a new one with them at the same time, you may qualify for a prepayment charge reduction​. In practice, that means Scotia will likely waive the penalty on the portion equal to the new mortgage amount. You might still pay a penalty on any excess amount that isn’t carried over unless it falls within your prepayment privileges.
• Timeframe: Scotiabank typically requires the new purchase to close within a set period after the sale of the old property to consider it a port (this is generally the standard 90 days, though exact timing isn’t published publicly). It’s best to aim to close the new mortgage as soon as possible after discharging the old one. If the closings are on the same day, even better (that’s effectively concurrent). If not, communicate closely with Scotiabank – they may treat anything within a few months as a port, especially if they’ve pre-approved your new mortgage and flagged it as a port in their system.
• Eligibility and Requalification: Just like any lender, Scotia requires that you apply and qualify for the new mortgage when porting​. They’ll assess your income and credit to ensure you can carry the debt on the new property. The new property must also meet Scotia’s lending guidelines. If your financial situation has changed (e.g., lower income or higher debts), there is a risk you might not qualify to port the entire amount – in such cases, consulting a broker is essential to explore solutions (such as porting part of it, or other lenders).

Blend-and-Extend Option: It’s worth noting that Scotiabank’s approach to blending often involves extending your term. This can be advantageous because you lock in that blended rate for a new full term (e.g., 5 years), providing rate certainty. On the other hand, if you only had a short time left on your old mortgage, extending means committing longer (which could be good or bad depending on rate movements). Make sure the blended rate and term make sense for you. Scotia will calculate the blended rate based on current posted or discounted rates and your remaining term. Some borrowers have noted that certain banks, possibly including Scotia recently, handle the “increase” by effectively creating a second component rather than a true blend in one loan. However, Scotia’s official terms explicitly mention blending and extending as a feature​.

Prepayment Penalty: If done seamlessly, you should not pay a full penalty when porting with Scotia. Either the penalty is waived because you closed concurrently, or it’s refunded after the fact, or reduced proportionally. Always confirm with the bank how they handle the logistics. Often, the sequence is: old mortgage is paid out (penalty initially charged), new mortgage is funded (qualifying replacement), then penalty is rebated. Make sure to get that in writing or confirmed by your Scotia representative. If there is a gap between closings, ask if you can have a letter confirming the port to avoid the penalty, or if you must pay it and then get a refund.

Turkin Mortgage tip: Scotiabank’s porting program is useful but can involve some “fine print” calculations (like how exactly the blended rate is determined, or how a partial port penalty is calculated). At Turkin Mortgage, we stay on top of these policy details. We can communicate with Scotiabank on your behalf to ensure you understand your blended rate offer and any fees. If Scotia’s current offer doesn’t satisfy you, we can even compare what another lender might do – but our goal is to help you make the port as cost-effective as possible. We’ll guide you through the requalification and make sure no detail is missed, so you can move homes with peace of mind.

First National Porting Mortgage

First National is one of Canada’s largest non-bank mortgage lenders, and they do allow mortgage porting for their clients. If you have a First National mortgage on your current home, you can apply to port it to a new property in Ontario and continue with the same rate and terms rather than breaking the mortgage. First National emphasizes that by porting, you “don’t have to break your mortgage early,” which helps you avoid potential prepayment charges​. Additionally, porting a mortgage can be a seamless transition for those looking to move within the market without incurring extra costs. This flexibility can be particularly advantageous when compared to options offered by other private mortgage lenders in Toronto, which may not provide the same level of convenience. By choosing to port, clients can maintain their financial stability while adapting to new living arrangements.

Here’s what to expect when porting with First National:

• Eligibility: Porting is typically available on First National’s fixed-rate mortgages (closed terms). As with banks, if you have a variable-rate mortgage with First National, portability might not be offered; instead, you’d incur the 3-month interest penalty for breaking it. Always check your mortgage commitment – it will state if the mortgage is portable. You must also be buying a new home (it can be anywhere in Canada, not just Ontario, as First National lends countrywide). The new purchase should occur within a defined timeframe after selling your old home. While First National doesn’t publicly specify the timeframe, industry practice for many lenders is around 30-90 days.
• Requalification: You will need to reapply for a mortgage approval on the new property. First National will assess your credit, income, and the property details. Because First National is a lender accessed through mortgage brokers, you likely worked with a broker to get your original mortgage – it’s wise to involve the broker again now (for example, Turkin Mortgage can work with First National on your behalf). The new property will require an appraisal and must meet First National’s guidelines (property type, value relative to the loan, etc.).
• Port and Increase: First National understands that your financing needs may change with a new home. If you need a bigger mortgage than your current balance, First National can work with you to adjust your mortgage amount upward​. They will effectively lend you additional funds. The mechanism can vary – they might offer a blended rate on a new term for the combined amount, or they might structure it as a second mortgage tranche. Many monoline lenders (non-banks) prefer to blend into one new mortgage to keep things simple. The blended interest rate would be between your old rate and the current rate for the new funds, similar to the process at banks. You would typically start a new term when you do this (often aligning with a fresh 5-year term or whatever term you choose for the new money).
• Port and Decrease: If you need a smaller amount on the new home, you can choose to port a portion of your mortgage. Suppose you have a $400,000 mortgage and the new house only needs $300,000 in financing – you could port $300k. For the $100k difference, you’d be paying that off, which could incur a penalty. First National doesn’t explicitly publish how they handle this, but generally they may require you to pay the IRD/3-month interest on the $100k that’s not ported (minus any allowable prepayment privileges). Since First National typically allows certain lump-sum prepayments (often 15% annually)​, you might cover some of that $100k penalty-free, and pay a penalty on the rest. It’s a bit technical, and definitely a case where a broker’s guidance is helpful to minimize costs (for example, timing part of the payout on an anniversary date to use your prepayment allowance).
• Assumptions vs. Porting: First National notably advertises that buyers of your current home have the option to assume your mortgage​. This is slightly different from porting, but it’s related. An assumable mortgage means the person buying your home could take over your First National mortgage (with First National’s approval). That could help you avoid a penalty because your mortgage isn’t being broken – it’s continuing with a new borrower. Meanwhile, you could start a brand-new mortgage for your new home. However, assumption requires finding a buyer who wants your exact mortgage terms and who qualifies to assume it. It’s relatively rare in practice, but it’s good to know First National permits it. If assumption doesn’t happen, then porting is your way to avoid the penalty by moving the mortgage to your new property yourself.
• Timeframe and Process:While exact days aren’t published, expect that First National will treat the port as valid only if the new mortgage funds within a short period of paying off the old one. Because First National is a lender often accessed via brokers, the process might involve your broker informing First National that you intend to port, and getting a approval for the new property ahead of time. First National will issue a new mortgage commitment for the ported mortgage. It’s crucial to coordinate closing dates closely. If your sale closes and you don’t have a new purchase ready in time, the porting opportunity could be lost and the penalty would stand. Some clients try to close both transactions on the same day or within a week or two to be safe.

Prepayment Penalty: In a successful port, you avoid paying the prepayment penalty on your existing mortgage (aside from possibly any reduced portion if the mortgage amount decreased). This is a significant saving – First National’s penalty on fixed mortgages is typically an IRD calculation or 3 months’ interest, similar to banks. By porting, you sidestep that on the amount ported. Always get clarity on whether you need to pay the penalty upfront and get reimbursed, or if they can waive it outright. Many lenders will initially charge it on payout and then refund it upon funding of the new mortgage, so plan your cash flow accordingly (you might need funds to cover the penalty for a short period).

Turkin Mortgage tip: Porting with a lender like First National is a bit different than with a big bank, mainly because communication flows through a mortgage broker. The team at Turkin Mortgage has extensive experience with First National’s processes. We can coordinate everything – from securing your new approval to making sure First National knows your intent to port – so that you aren’t hit with an unnecessary penalty. We’ll also help you exploit any prepayment privileges to reduce balances if needed, and ensure the timing aligns. Our goal is to let you “keep it simple,” just as First National encourages​, by handling the complex parts for you.

TD Mortgage Porting Rules

TD Canada Trust provides the option to port mortgages as well, with some specific rules to note. TD’s definition of porting is moving your mortgage to another property while keeping the same mortgage balance, term, and interest rate​. This means if you have a TD mortgage and you move, TD can let you carry on with that mortgage on your new home, avoiding a payout penalty.

Important aspects of TD’s porting policy:

• Only Fixed-Rate Closed Mortgages are Portable: TD (like most lenders) generally allows porting only on closed fixed-rate mortgages. If you have a TD variable-rate mortgage, or certain special TD products, you likely cannot port and would have to break the mortgage (paying the 3-month interest penalty). A Reddit discussion confirmed that TD’s portability is only valid for fixed rate mortgages​. So, if you’re planning a move and currently have a variable with TD, talk to a Turkin Mortgage advisor about strategies (one might be converting to a fixed rate before porting, though that comes with considerations).
• Porting Process: With TD, you will need to apply for a new mortgage on the new property and qualify under TD’s lending guidelines. Provided you qualify, you can port the balance of your existing mortgage at the same rate and with the same term remaining. TD will allow you to increase the mortgage amount if needed for the new home​. The way TD typically handles an increase is via a blend. They might blend the interest rates and possibly align the term, or they might create a second component (similar to RBC’s approach). TD’s materials emphasize the concept of porting as keeping your term and rate, which suggests that if you add money, they might keep your old portion intact and give you the extra as a separate segment at a current rate. The combined effect is like a blended rate, though you’d see it as two sub-loans under a TD Home Equity FlexLine structure, for example.
• Time Limit: TD requires the sale and purchase to happen in a tight window for porting. While TD doesn’t publicly advertise the exact timeframe, you should assume it’s in line with industry norms (often 90 days or less). Many borrowers try to coordinate same-day closings for convenience. If that’s not possible, consult TD early – they may approve your port and temporarily charge a penalty which is refunded when the new mortgage funds. It’s critical not to exceed their allowed gap, or you lose the ability to port.
• Prepayment Penalty Avoidance: If executed properly, porting with TD means you don’t pay a prepayment charge on the amount ported. TD’s website notes porting “saves you money by avoiding early prepayment charges.”​. That said, if you decrease the mortgage (borrow less on the new home), any amount not ported would be subject to TD’s prepayment penalty. TD’s penalty on a fixed mortgage is the greater of 3 months’ interest or IRD. So, for example, if you had a $300k mortgage and only needed $250k for the new house, you might face a penalty on that $50k difference (unless you can use TD’s prepayment privileges to cover some of it). TD typically allows 15% annual prepayment without penalty – if timing aligns, you might prepay some before porting to minimize any leftover.
• Blend-and-Extend: TD doesn’t explicitly use the term “blend-and-extend” in customer-facing materials, but in practice, they do offer blended rates for additional funds, and you often can choose to start a new term. For instance, TD might offer you to blend your existing rate with the current rate and extend your term back to, say, 5 years on the new mortgage (this would be essentially a refinance, though, and might involve a slightly different process). Alternatively, TD could let your original term continue ticking down for the ported portion and just have the new money on its own term. The approach can vary, so it’s something to clarify with the TD representative at the time. Turkin Mortgage can help you negotiate this – sometimes extending to a longer term at blend can smooth out your payments or secure your rate longer, which might be beneficial.

Other TD Considerations: When porting, TD will require a standard appraisal on the new property and you’ll need to cover legal fees for discharging the old mortgage and registering the new one (as with any mortgage move). There might be a small porting fee or “assignment fee.” Also, if your original mortgage was insured (CMHC/Sagen), and you increase the loan, you’ll pay mortgage default insurance on the new money (just like any lender). TD’s portability applies across Canada, so moving from one province to another is usually fine, as long as TD lends in that area and the property fits their criteria.

Turkin Mortgage tip: With TD, details matter – missing the allowed porting window or miscommunicating could result in a surprise penalty. Our Turkin Mortgage advisors frequently work with TD and can ensure your porting application is handled correctly. We’ll help you get pre-approved for the new purchase under the porting arrangement, so you know exactly how much you can port and how much extra you might borrow. We also double-check the timing so that you truly “move” your mortgage without a hitch. If any issues arise (like needing extra time or your qualifications have changed), we’re there to find solutions – whether with TD or by exploring other lenders – always aiming to save you money and stress.

Mortgage Porting Calculation

Porting a mortgage can save you money, but it’s important to understand how to calculate the costs or savings to see if it’s the right move. Here are the key components to consider in a mortgage porting calculation:

• Prepayment Penalty if You Don’t Port: First, determine the cost of breaking your mortgage if you were to not port. This is usually the prepayment penalty. For fixed-rate mortgages, this penalty is typically the Interest Rate Differential (IRD) or three months’ interest, whichever is higher. For example, if you have a 5-year fixed and rates are now lower than when you got it, the IRD could be large. If rates are higher now, often the three months’ interest is the penalty (since IRD might be zero in rising rate scenarios). Use your lender’s online calculator or ask for a payout quote. This penalty can easily be tens of thousands of dollars if you have a large balance and a long time left on your term​. Porting the mortgage is attractive largely because it can wipe out this cost. Essentially, when you port, you’re continuing the loan, so the lender doesn’t charge you for breaking it​ (except possibly on any portion you don’t carry over).
• Difference in Interest Rates (Savings or Cost): Calculate the difference between keeping your current interest rate versus getting a new mortgage at today’s rates. For instance, if your existing rate is 2.8% and the current rates for a new mortgage are 5.0%, porting means you keep 2.8% on your existing balance – a huge interest savings yearly on that amount. Even if you need extra funds at 5.0%, it’s only on the new money. You can estimate a blended rate if you’re adding funds: it will be weighted by the proportions of old and new balances. For example, imagine you have $200,000 left at 2.8% and you need $100,000 more at 5.0% for the new home. Your blended rate for the $300,000 could be roughly (2.8% * 2/3) + (5.0% * 1/3) = 3.533% (approximately). Many lenders will calculate this precisely; some might give you slightly better if the terms are extended. You can use online blend-and-extend calculators​ or simply let the lender tell you the new payment. The key is that 3.533% on $300k is much better than, say, 5.0% on $300k would have been – that difference in interest is part of your savings from porting.
• Blending Costs: Note that the new portion borrowed will be at the current market rate. Some lenders might not do a true blend but rather keep two sub-loans. In any case, you’re paying the going rate on the new money. That’s not really a “cost” of porting; it’s just the cost of needing more funds. The savings of porting is that you didn’t have to put the entire mortgage at the new higher rate. If you were downsizing and porting less, then you don’t have new funds, you’re actually returning some money – in that case, your interest cost likely stays the same (or you have a smaller balance at the same rate, so interest paid is less in absolute terms).
• Fees and Miscellaneous Costs: Porting isn’t free of all costs. You should factor in any administrative fees your lender charges for porting (some charge ~$200 for paperwork, some charge nothing explicit). You will have to pay for a home appraisal on the new property in many cases (a few hundred dollars, though some lenders/Brokers like Turkin might cover this as part of service). Also include legal fees – when you move, your lawyer/notary will be handling the discharge of the old mortgage and registration of the new one. This is often similar in cost to any purchase with a new mortgage, typically $1,000–$1,500 in Ontario for legal work. If you weren’t porting and just broke the mortgage, you’d still pay legal fees for a new mortgage with another lender, so it’s usually a wash, but worth noting.
• Default Insurance Considerations: If your current mortgage was high-ratio (you had <20% down and paid CMHC/Sagen insurance), and you port that mortgage insurance to the new purchase, you don’t pay it again on the ported amount. However, if you increase the loan, you’ll pay insurance premium on the new money. That premium could be 4% of the new amount (if adding a lot and still under 20% down) or some blended rate if your overall loan-to-value changes. This is a cost to consider in your move. Porting doesn’t avoid that, because any new funds are subject to whatever insurance rules apply. Some folks calculate that if they don’t port and switch lenders, they might have to pay a full new insurance premium on the whole loan – but if they port with the same lender, often the insurance on the original amount can just carry over, and you only pay on the difference. This nuance can be discussed with your broker or lender to ensure you budget for it.
• Savings Over Remaining Term: One way to frame the calculation is: How much interest will I pay over the remaining term if I port versus if I took a new mortgage? Suppose you have $300k at 2.8% with 3 years left. Porting means over the next 3 years, you keep that rate (on whatever portion ported). Breaking and renewing at, say, 5% means paying 5% for those 3 years on the whole balance. The difference in interest expense over 3 years, plus the penalty you’d pay if you broke, is your potential savings by porting. In many cases in the current environment, this runs in the tens of thousands of dollars saved by porting​. If current rates are lower than your rate (the opposite scenario), you would calculate if the interest saved by going to a lower rate outweighs the penalty you have to pay – sometimes it might, which would argue against porting. It really is a math exercise.
• Example Calculation: Let’s do a quick hypothetical:
  • Remaining balance: $400,000 at 3.0% fixed, 2 years left.
  • Break penalty (IRD): $8,000 (just an example from a penalty calculator).
  • New home needs additional $100,000, and 5-year market rate is 5.5%.
  • Option A (Port and Blend): Port $400k at 3.0% for remaining 2 years. Add $100k at 5.5% for 2 years (or possibly 5 if extending term). Blended rate for 2-year term might be around 3.8% on $500k (if just to term)​. After 2 years, you’ll have to refinance the whole amount at market rates (unknown future rates). Penalty paid: $0 (since ported, aside from maybe a small one on any un-portable portion which we’ll assume none in this case). Interest cost for 2 years: roughly $500k * 3.8% * 2 = $38,000 (simplified, not accounting amortization).
  • Option B (Break and New Mortgage): Pay $8,000 penalty. Take a new $500,000 mortgage at 5.5% for 5 years (or even for 2 years, but let’s say 5 for comparison). Interest cost for first 2 years: roughly $500k * 5.5% * 2 = $55,000. Plus the $8,000 penalty = $63,000 out of pocket in two years.
  • In this scenario, Option A (porting) saved approximately $25,000 in just two years (and potentially more if we consider the whole 5-year term difference). Clearly porting was beneficial. Every scenario will differ, but this illustrates the kind of analysis to do.
• Consider Future Flexibility: One small caveat – when you port, you are keeping an older mortgage contract. If that contract has less flexibility or you were hoping to change something (like get a Home Equity Line of Credit, or change the term length), porting might limit you in the short run. Some people choose to pay a penalty to get a different product or lender. Those non-monetary factors can be part of your decision too, though the calculation is primarily about dollars saved or spent.

In summary, calculating the benefit of porting involves comparing the penalty cost and new interest costs of breaking versus the blended interest costs and minor fees of porting​. If you’re not comfortable doing this math, don’t worry – that’s exactly where Turkin Mortgage can assist. We routinely perform these analyses for our clients. We’ll present you with a clear breakdown: “If you port, it will cost/save you approximately X. If you don’t, it will cost Y.” This professional insight helps you make an informed decision with confidence.

Mortgage Porting Example

Let’s walk through a realistic example of porting a mortgage to see how the process might play out in practice.

Scenario: Imagine a couple, John and Emily, who own a home in Ontario. They have an existing mortgage of $300,000 with a fixed rate of 2.75%. There are 3 years remaining in their 5-year term. They got a job relocation and need to move to a bigger house in another city. They found a new house for purchase price $600,000. They plan to put $100k down from their sale proceeds, which means they’ll need a $500,000 mortgage for the new home.

John and Emily’s current lender is RBC. Current 5-year fixed rates are around 5.25%. If they were to break their mortgage entirely and get a new one, they’d face a hefty interest rate jump and a penalty. RBC calculated their prepayment penalty to break the $300k mortgage now would be about $9,000 (an IRD charge, since 3 years remain and rates have risen, RBC uses posted rates to calculate). John and Emily are understandably keen to avoid paying $9,000 if they don’t have to.

They speak with their RBC mortgage specialist (and also loop in a Turkin Mortgage advisor for a second opinion). RBC confirms that their mortgage is portable and that they can port the $300k at 2.75% to the new property, as long as the new purchase closes within 90 days of selling their current home. The new home requires a $500k mortgage, so they will do a port-and-increase for the extra $200k. RBC agrees to blend the interest rate for the new $500k mortgage.

Here’s how it unfolds:

• Requalification: John and Emily get pre-approved with RBC to ensure they qualify for the larger $500k loan. Since their incomes have gone up since their first purchase and they have good credit, they pass the stress test and are approved. The new property is appraised and meets RBC’s lending criteria (it’s in a good location, resale freehold house, etc.).
• Sale and Purchase Coordination: They list their current home and find a buyer. They negotiate the closings such that the sale of their current home and the purchase of the new home happen on the same day. This makes porting easiest – on closing day, the lawyer will use the sale proceeds to pay off the old mortgage, and within minutes, advance the new mortgage on the new house. RBC will port the mortgage in one coordinated transaction, so no penalty is actually charged at all (the mortgage isn’t sitting paid off for any length of time – it’s transferred over). In case the dates didn’t line up, RBC had a process to charge the $9k penalty on sale then refund it once the new mortgage funded a week later, but John and Emily avoided that hassle by aligning the dates.
• Blend-and-Extend Details: RBC offers them a choice: They can keep the remaining 3-year term for the whole $500k (meaning in 3 years, both the old and new portions would come up for renewal), or they can extend to a new 5-year term on the $500k at a blended rate. John and Emily discuss with Turkin Mortgage which option is better. Keeping 3 years would mean they have a low rate on $300k for 3 more years, but the $200k portion would also only be locked for 3 years at whatever blended rate RBC calculates for a 3-year term. Extending to 5 years would lock in a bit higher blended rate for longer. Given interest rate uncertainty, they decide to stick with the remaining term (3 years) for now, since that gives them flexibility sooner and they plan to aggressively pay down some mortgage in those years.
• Blended Rate Outcome:RBC calculates the blended rate for a 3-year term on $500k. The original $300k is at 2.75% with 3 years left. The additional $200k will be at RBC’s current 3-year rate (say RBC’s 3-year rate is 5.00%). The weighted average comes to around 3.70%for the combined $500k. (The math: (300k/500k * 2.75%) + (200k/500k * 5.00%) = 3.70% approximately.) RBC agrees to that blended rate for the new 3-year term on the entire mortgage. John and Emily are pleased – 3.70%is much better than the 5.25%they’d have paid on a brand new mortgage. Their monthly payments do increase (because their mortgage balance increased to $500k), but not as sharply as they would have with a full break.
• Closing Day: On closing day, RBC “ports” the $300k. The lawyer registers a new $500,000 mortgage on the new house at 3.70% for 3 years. The old mortgage is officially closed out with no penalty. John and Emily move into their new home, relieved that they didn’t have to come up with $9,000 for a penalty or face the higher interest costs.
• Aftermath: Over the next 3 years, they benefit from the low blended rate. They even decide to use RBC’s prepayment privileges to put $10k extra per year toward principal (which they might not have afforded if the rate was 5%+). When the 3-year term is up, their mortgage balance is lower thanks to these prepayments and regular payments. At that point, they can negotiate a new term. If rates are still high, they at least deferred that pain by 3 years; if rates come down, they’ll be in great shape to maybe blend downwards or refinance.

Savings: By porting, John and Emily saved the $9,000 penalty and also saved on interest. If they had broken the mortgage, they would have started a new $500k at 5.25% for 5 years. Roughly, their interest in the first 3 years would have been much higher. We can estimate: at 5.25%, $500k would incur about $78k of interest over 3 years (simple calc). At 3.70%, $500k incurs about $55.5k over 3 years. That’s a ~$22,500 interest savings over three years, plus the $9,000 avoided penalty. So total benefit is in the ballpark of $31,500. Even after accounting for some closing costs and a modest appraisal fee, the net gain is substantial. This example illustrates why porting can be so advantageous when rates have risen.

The role of Turkin Mortgage in the example: Let’s say John and Emily were initially unsure about porting. A Turkin Mortgage broker could have run these numbers for them and demonstrated the savings. Additionally, the broker would ensure RBC processes the port correctly. In one instance, having a broker means if anything went wrong (imagine RBC initially gave a higher blended rate or there was any confusion), the broker steps in to fix it. In our scenario, everything went well, but John and Emily had peace of mind knowing an expert was overseeing the steps. They could focus on packing and moving, while Turkin Mortgage coordinated the financing details with RBC.

This fictional case study shows the typical journey: check portability, get approved for new purchase, decide on how to structure any increase, time the closings, and seamlessly transition the loan. Every situation has its wrinkles – maybe your income is lower now, or the closings can’t align perfectly, or you’re switching provinces – but the core idea is that porting can make a move far more cost-effective. And with professionals guiding you, even complex situations (like bridging a gap between sale and purchase) can be managed so that you still reap the benefits of porting.

How long does porting a mortgage take?

The timeline for porting depends heavily on coordination of your sale, purchase, and lender processing. Based on industry practices (and as referenced by lenders) here are typical timeframes and factors:

• Many lenders allow 30 to 120 days between the closing of your existing home sale and the new home purchase for the port to remain valid.
• Some lenders offer a “delayed port” or “reverse port” if you purchase first and then sell. For example, one lender allows up to 120 days before the old mortgage is discharged.
• From the moment you decide to port: you’ll need to engage your lender/broker, submit application for the new property, get appraisal, requalify, then coordinate the closing. Each of those steps can take days to weeks depending on documentation, lender workload, and your situation.

Therefore, ideally you should plan the process well in advance:

1. Confirm that your current mortgage is portable (check product, clause).
2. Get pre-approval or at least lender indication that you can port to the new property.
3. Align the closing dates for sale of old home and purchase of new home.
4. Ensure all documentation (income, credit, property) is prepared.

In practice: If everything aligns (you’ve already found your new home, have sale pending for your old home, lender is responsive), the actual “porting” leg (approval + closing) might be completed in a few weeks. But because you’re combining it with a home sale and purchase, you often need to allow several weeks to a couple months of lead time.

Why Choose Turkin Mortgage as Your Partner for Porting a Mortgage

Porting a mortgage involves many moving parts – from understanding each lender’s rules to timing the sale and purchase just right. This is where Turkin Mortgage becomes an invaluable partner. We pride ourselves on being professional yet empathetic, and completely customer-focused. When you’re in the thick of selling one home and buying another, stress can run high. Our role is to shoulder the financing complexities on your behalf and provide clear, supportive guidance so you can make sound decisions with confidence.

Here’s why Turkin Mortgage is the ideal partner for your mortgage porting journey:

• Expertise with Lender Policies: We have deep knowledge of how different lenders handle porting – whether it’s CIBC’s 120-day port window, RBC’s blend-and-extend options, Scotiabank’s procedures, or nuances with monoline lenders like First National. Mortgage porting rules can change and often are tucked in fine print. Our team stays up-to-date on any policy updates and knows the eligibility criteria cold. We will immediately identify which of your current lender’s policies matter for your situation (e.g., if your mortgage is variable and not portable, we’ll strategize alternatives). This expertise ensures you won’t be caught off guard by a rule you didn’t know about.
• Personalized Strategy and Advice: Porting isn’t an all-or-nothing decision. Maybe porting only part of your mortgage and refinancing the rest elsewhere would actually save you more, or perhaps taking a hybrid approach is best. We analyze your unique financial picture and future plans. Our advice is tailored to you – we might recommend porting and blending with your current lender, or if that’s not optimal, we can secure a new mortgage that accomplishes your goals better. In every case, our aim is to minimize interest costs and penalties while ensuring you get the funds you need for your new home. We present the options in clear terms, without jargon, so you feel comfortable with the path you choose.
• Seamless Coordination: A successful port often comes down to timing and execution. Turkin Mortgage acts as your project manager for the mortgage. We coordinate with all parties – your current lender, the lawyer, the realtor (for closing dates) – to make sure that the porting process goes smoothly. For example, if you need bridge financing because your purchase closes a week before your sale, we’ll arrange that with the lender and explain how it works. If the lender requires documentation quickly, we’ll help you gather and submit everything promptly. Our supportive approach means you’re never left wondering what’s happening; we keep you informed every step of the way.
• Penalty Avoidance and Cost Minimization: One of our primary goals is to help you avoid unnecessary penalties. If there’s a way to structure your move so that you pay little to no penalty, we will find it. This could include guiding you on using prepayment privileges before porting, scheduling closing dates strategically, or even negotiating with the lender to waive a fee. We’ve saved clients thousands of dollars by catching details that might be overlooked. For instance, if a lender’s port period is 60 days and a client’s new home closes on day 65, we might intervene to get an exception or find a workaround. Our experience and relationships with lenders can be the key to such solutions.
• Blend-and-Extend Optimization: If your port involves blending rates, Turkin Mortgage will scrutinize the offered blended rate and term. We ensure the lender isn’t padding the rate unfairly, and we’ll explain exactly how they arrived at the number. If something looks off, we’ll challenge it on your behalf. Moreover, we help you decide on term length – sometimes starting a fresh 5-year term at a blended rate is wise; other times, keeping the remaining term is better. Our solution-oriented approach means we look for the outcome that saves you money and fits your life plans (maybe you expect to move again in 3 years, so why extend to 5? We take such factors into account).
• Emotional Support and Clarity: Moving homes is not just a financial transaction, it’s a life event with emotional stakes. We understand that. Turkin Mortgage advisors strive to be empathetic and supportive. We listen to your concerns – whether it’s fear of double mortgage payments, or confusion about jargon like “IRD” or “blended rate” – and we address them with patience and clarity. Our goal is that you feel less stress knowing a professional is handling the heavy lifting. We translate the industry-speak into plain language. By being in your corner, we turn what can be a daunting process into a more reassuring experience.
• One-Stop Shop for Comparison: While we often can make porting with your existing lender the most painless route, as a brokerage, we also have the ability to compare other lenders’ offers. Perhaps your bank’s porting offer is just okay, and another lender is willing to give you a fantastic rate that justifies paying a small penalty. We will do that comparison shopping for you, so you have full information. Our allegiance is to you, the client, not any particular bank. In the end, if porting is the best, we help you do that. If not, we help you secure a new mortgage elsewhere. Either way, you win by getting the best deal possible.

Choosing Turkin Mortgage means choosing a partner who will treat your goals as our own. We measure our success by your satisfaction – did we make your move easier? Did we save you money? Did we set you up for future financial success? Our professional yet friendly team ensures that from the first conversation to the day you get the keys to your new home (and beyond), you feel taken care of. Turkin Mortgage becomes your advocate in the mortgage world, helping you port your mortgage efficiently or find an even better solution if needed.

When it comes to porting a mortgage in Ontario, the bottom line is: you don’t have to navigate the complexities alone. With Turkin Mortgage by your side, you’ll have the guidance of experts who are supportive, knowledgeable, and dedicated to finding the best outcome for you. We handle the technicalities, you enjoy the savings and the smooth transition to your new home. Let us be your partner in this journey – we’re here to make porting (or any mortgage move) a positive and rewarding experience.

FAQ

Can you port your mortgage without selling?

Yes — in some cases, you can port your mortgage before selling your existing home, through what’s called a delayed or reverse port.

Do you get credit checked when porting a mortgage?

Yes — you should expect that your lender will perform a re-qualification check which typically includes a credit review. Porting is not simply “move the mortgage as is” without any review.