06/23/2025
Since one of my clients recently encountered some unexpected issues while trying to port her mortgage from one property to another, I thought it might be helpful here to point out why the porting process is not as "automatic" as some mortgage companies would have you believe. Several common problems can complicate or even prevent the process:
First, you must re-qualify. Lenders require you to go through a full mortgage qualification process again, including employment verification, a new credit check, and a review of your financial situation. If your income, debts, or credit score have worsened since your original approval, you may not qualify.
The new property may not meet lender criteria: Lenders will assess the new property for value, condition, and type. If it doesn’t meet their guidelines (e.g., it’s on leased land, age-restricted, rural, or has unique features), your porting request could be denied.
Tight timelines: Most lenders give a limited window (typically 30–120 days) to complete the sale of your old home and the purchase of your new one. Coordinating these dates can be challenging, and missing the deadline means you’ll likely face penalties or have to arrange new financing.
Additional borrowing complications: If you need a larger mortgage for your new home, you may have to negotiate a blended rate (combining your old and new rates), or take out a second mortgage at a higher rate. Some lenders only allow you to port the exact same amount, requiring you to cover any difference yourself.
Down payment and bridge financing issues: You still need a down payment for the new property, and if you buy before selling your old home, you may need bridge financing. Not all lenders offer this, and lack of access can halt the porting process.
Fees and penalties: Even when porting, you may face administrative fees, valuation costs, or prepayment penalties (sometimes refunded later). If you’re porting an insured mortgage and need to increase the amount, you may also pay top-up insurance premiums.
Not all mortgages are portable: Some products, especially variable-rate mortgages or those with special features (like a HELOC), may not be eligible for porting.
Lender restrictions and regional limitations: Some lenders restrict porting to certain property types or geographic areas, and credit unions may not allow porting out of province.
In practice, more than 60% of people who try to port their mortgage are unable to do so, mainly due to these complications. Careful planning, understanding your lender’s requirements, and consulting with a mortgage advisor can help you avoid costly surprises.
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