Understanding transferable mortgages

A portable (or assumable) mortgage allows you to transfer the terms, rate, and provisions of your existing mortgage to a new property when you move. This feature can be extremely valuable in certain market conditions.

Benefits of Mortgage Portability

Rate protection: If you obtained a low interest rate and rates have since risen, portability allows you to keep that favorable rate when you move.

Avoid penalties: Transferring your mortgage to a new property can help you avoid prepayment penalties that would otherwise apply if you broke your mortgage term.

Continuity: Maintain your existing payment schedule and amortization timetable without interruption.

Important considerations

Not all mortgages are transferable and conditions apply. The new property must be eligible under your lender's current criteria, and if you borrow more for the new property, the additional amount will be at current rates. The timing is also crucial – most lenders require the sale and purchase to close within a specified period (usually 30 to 90 days).

Discuss portability options with your mortgage professional when shopping for your mortgage to ensure this flexibility is available if you need it.