Real Estate

Mortgage Break or Port

  • Last Updated:
  • May 6th, 2020 12:16 am
[OP]
Deal Addict
Feb 9, 2013
1806 posts
760 upvotes
Mississauga

Mortgage Break or Port

I'm currently living in a condo, and plan to purchase and move to a townhouse later this year. I am currently with BMO on 2 of 5 yr fixed term. If I sell my condo to purchase the townhouse, does this mean I need to break my mortgage? I've heard about being able to port your mortgage, am I eligible to do this in my situation and how does it work?
6 replies
Newbie
Apr 29, 2020
76 posts
311 upvotes
Last time I switched houses, it was simply a matter of porting the mortgage over to the new house. I think if you were to break it, you would have to pay the exorbitant fees associated with breaking a mortgage.

I kept with the same bank so it was a relatively painless process that they should be able to explain to you pretty quickly.

This is something that happens all of the time, shouldn't be a big deal. Just shoot your mortgage broker an email and inquire about the details.
Deal Addict
Nov 24, 2013
1243 posts
651 upvotes
Toronto
You should be able to port it.
Deal Fanatic
Jul 4, 2004
5959 posts
2047 upvotes
Ottawa
Yes, check your mortgage contract but paying off a mortgage early has very significant penalties. However if it was a CMHC insured mortgage, it might be capped at 3 months penalty.

Call your bank but you shouldn't have any problems porting it (and extending if necessary) for a new property. That said, it can be more complicated if the dates don't quite coincide.
Deal Guru
Feb 29, 2008
13868 posts
10128 upvotes
Port. Lets just say, I'll never break a fixed mortgage again. It's a lot of money.
Deal Fanatic
Apr 5, 2016
5036 posts
3569 upvotes
Calgary/Vancouver
You can port it over but the mortgage balance has to be exactly the same. If you need a higher balance, you can blend and extend which will blend your current rate with the new rate. Won't be the lowest rate but saves you the prepayment penalty.
Current Fido and Rogers customer.
Ex Koodo customer.
Sr. Member
Oct 11, 2016
564 posts
210 upvotes
the key here is that your mortgage is "fixed" If it was variable, the penalty is a heck of a lot less...3 months interest + discharge fees. As others have said, breaking a fixed mortgage can cost you dearly. I broke a fixed mortgage with a month to go...it wasn't horrible..but still was pricey. I had 90 days to get another property to port it (RBC.)

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