Definition
Portability is a contractual feature allowing the borrower to 'port' their mortgage to a new property when selling their current one.
**Typical conditions**: - Portability window: 30-90 days between sale and purchase (variable window depending on lender) - Same financial institution mandatory (cannot port to another lender) - The new property must meet the lender's criteria - The borrower must re-qualify (income, credit) for the new amount
**Simple portability vs. port + increase**: - **Simple portability**: same amount transferred → identical rate - **Port + increase**: existing portion at current rate + additional portion at market rate → calculated blended rate
**Advantages**: - No prepayment penalty - Retention of a historically favorable rate - Particularly valuable in a rising rate environment
**Limitations**: - Availability limited to same institution - Short portability window (difficult if variable transaction timelines) - If new property costs less → impossible to reduce amount by porting (balance must be repaid — penalty on excess)
**Verification before choosing a lender**: Portability must be confirmed in writing in the mortgage contract. Some alternative and monoline lenders do not offer it, or with very restrictive conditions.