Do You Need a Down Payment When Porting a Mortgage?

The short answer: yes — you still need a down payment when porting a mortgage.
The good news is that it usually comes directly from the sale proceeds of your current home once it closes.

Understanding how porting a mortgage works can save you thousands in penalties and help you move smoothly from one property to the next.

Here’s what you need to know.

What Is Porting a Mortgage?

Porting a mortgage means transferring your existing mortgage — including the interest rate, term, and lender — to a new property.

You’re essentially taking your current loan and “porting” it to the next home you buy.
This option is typically available when:

• You’re moving and using the same lender,
• Your mortgage product allows portability, and
• You still meet your lender’s qualification criteria.

Even though it’s the same mortgage, your lender must still review your income, credit, and the new property to make sure everything qualifies.

How Does Porting a Mortgage Work?

Here’s how it works in practice:

1. You sell your current home.
   Your existing mortgage will be paid out from the sale.
2. Your equity becomes your new down payment.
   After paying off your current mortgage, legal fees, realtor commissions, and any debts being cleared, the remaining proceeds are used as your down payment on the new property.
3. You buy your next home.
   Your lender transfers your mortgage terms to the new property and re-approves you for the new loan amount.
4. If closing dates don’t align, bridge financing can help.
   This short-term financing lets you access your equity early if your purchase closes before your sale.

Example:
You sell your home for $720,000 and owe $500,000 on your mortgage. After fees and expenses, you have about $190,000 in proceeds.
If your next home costs $800,000 and you want to put 20% down ($160,000), you can use that equity for your down payment and still have funds left over for moving costs or upgrades.

That’s the practical side of how porting a mortgage works — your old mortgage moves with you, your equity becomes your down payment, and bridge financing can smooth the transition.

Down Payment Rules When Porting

The minimum down payment rules in Canada are the same whether you’re buying your first home or porting an existing mortgage:

• 5% on the first $500,000 of the purchase price
• 10% on the portion between $500,000 and $1,499,999
• 20% on homes priced $1.5 million or more

If you put less than 20% down, the mortgage must be insured by CMHC, Sagen, or Canada Guaranty. The insurance premium is added to your mortgage.

Amortization rules:

• Insured mortgages are typically capped at 25 years,
• Conventional (20% down or more) mortgages can go up to 30 years,
• As of 2024, first-time buyers purchasing new builds can qualify for insured 30-year amortizations.

Port and Increase vs. Port and Decrease

When you port your mortgage, one of two things happens:

1. Port and Increase

You’re buying a more expensive home and need a larger mortgage.

• You keep your old rate for the existing balance.
• The additional funds are added at today’s rates.
• The lender blends the two into one overall rate (called a blended rate).

2. Port and Decrease

You’re buying a less expensive home and borrowing less than before.

• You may need to pay a partial penalty on the amount you’re not transferring.
• However, keeping your old rate usually still saves money overall.

Your mortgage broker will calculate both options and show which one makes the most sense for your situation.

How Much Does It Cost to Port a Mortgage?

In most cases, porting a mortgage is free.
However, there can be small costs involved depending on your lender and timing:

• Administrative or appraisal fees: typically $0–$400
• Bridge financing costs: only if closing dates don’t align
• Legal fees: if a new registration or discharge is required

The real savings come from avoiding prepayment penalties, which can often be thousands of dollars if you break your mortgage instead of porting it.

If your new home’s value or mortgage size changes significantly, your broker will compare both options — porting vs. breaking — to ensure you make the most cost-effective move.

How to Port Your Mortgage Successfully

If you’re planning to move, here’s how to port your mortgage smoothly:

1. Check your lender’s porting window.
   Most lenders allow 30–120 days between the sale of your current home and the purchase of your new one.
2. Get pre-qualified early.
   Even when porting, you must still requalify based on your income, debts, and credit.
3. Ask about bridge financing.
   This covers any gap between your closing dates so your down payment is available on time.
4. Compare both scenarios.
   If rates have dropped since you first got your mortgage, it may be cheaper to break and start fresh instead of porting.

Your mortgage broker will help you calculate all scenarios before you commit.

Common Questions

Do I pay land transfer tax when porting a mortgage?
Yes. Porting doesn’t avoid land transfer tax since you’re still buying a new property.

Can I port if my income has changed?
You’ll need to requalify, but your broker can help present your file in the best possible way.

What if my new home costs less?
That’s a “port and decrease.” You may pay a small penalty on the difference, but it often still saves money.

Can I switch lenders while porting?
No. Porting only applies with the same lender. If you switch, it’s considered a new mortgage.

Final Thoughts

Porting your mortgage can be an excellent way to save money and avoid penalties when moving to a new home.
Your equity becomes your down payment, and your existing rate and term can move with you — provided you still qualify.

Understanding how porting a mortgage works before you list your home will help you plan the timing, down payment, and financing strategy with confidence.

Ready to Get Pre-Qualified?

Click Apply Now to start your secure pre-qualification — it only takes a few minutes and won’t affect your credit.

Once submitted, we’ll:

• Review your current mortgage details,
• Confirm your eligibility for porting,
• Calculate your available equity and exact down payment amount, and
• Compare whether porting or a new mortgage will save you more.

Start your pre-qualification today and make your next move with confidence.