Real Estate

Mortgage Break or Port

  • Last Updated:
  • May 6th, 2020 12:16 am
[OP]
Deal Addict
Feb 9, 2013
1832 posts
985 upvotes
Mississauga

Mortgage Break or Port

Mortgage Break or Port
Last edited by jdu0ng on Mar 23rd, 2021 10:08 am, edited 1 time in total.
6 replies
Newbie
Apr 29, 2020
90 posts
334 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
2056 posts
1386 upvotes
Toronto
You should be able to port it.
Deal Fanatic
Jul 4, 2004
6925 posts
3512 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 Expert
Feb 29, 2008
17293 posts
14685 upvotes
Tarrana & The Ri…
Port. Lets just say, I'll never break a fixed mortgage again. It's a lot of money.
Deal Fanatic
Apr 5, 2016
5765 posts
4187 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.
Sr. Member
Oct 11, 2016
859 posts
379 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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