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Port vs Break

Porting vs breaking your mortgage: which is cheaper when you move?

When you sell and buy a new home mid-term, you can usually 'port' your existing mortgage — carry the same rate and terms to the new property — and skip the break penalty. But porting isn't always the cheapest option: if today's rates are much lower, or your timing and numbers don't line up, breaking and refinancing can win. Here's how to run the comparison.

Port = keep your rate, skip penaltyBreak = pay penalty, get today's rateBlended rate if you need more moneyTiming windows matterWe run both numbers
5-star rated| FSRA #13737| 5-min pre-qualification

Written by the Mortgage Squad Advisors Editorial Team · Reviewed by the Principal Broker, FSRA #13737 · Updated June 2026

The short answer

Port your mortgage if your current rate is similar to or lower than today's rates — you keep your rate, avoid the break penalty entirely, and simply move the mortgage to your new home. If you need to borrow more for the new place, the lender 'blends' your existing rate with today's rate on the new money. Break your mortgage instead if today's rates are significantly lower than your current rate — the interest you'd save can exceed the penalty — or if porting isn't practical (tight closing timelines, you don't requalify, or the lender's port terms are poor). The only way to know is to compare the penalty against the rate savings in dollars, which is exactly what we do before you move.

At a glance

Which one is built for you?

A

Port your mortgage

Transfer your existing mortgage — same rate, same terms, remaining balance — to the home you're buying. No break penalty. Most common when moving mid-term.

Best for
  • Your current rate is similar to or below today's rates
  • You want to avoid the break penalty entirely
  • Your purchase and sale timing line up within the lender's window
  • You still qualify under current rules for the new property
B

Break & refinance

Discharge your existing mortgage (paying the penalty) and take a brand-new mortgage at today's rate on the new home — sometimes with a different lender.

Best for
  • Today's rates are well below your current rate
  • Porting isn't practical (timing, requalifying, poor port terms)
  • You want to switch lenders or restructure significantly
  • The rate savings clearly exceed the penalty
Side by side

The full comparison

FactorPort your mortgageBreak & refinance
Break penaltyAvoidedPaid (3 months' interest or IRD)
Your rateKept (blended if you borrow more)Today's rate on the whole amount
Best when rates areSimilar or higher than yoursMuch lower than yours
Borrowing more for a pricier homeBlend-and-extend at a mixed rateAll at today's rate
RequalifyingUsually required for the new propertyRequired — it's a new mortgage
TimingMust port within the lender's window (often 30–120 days)Aligns to your new purchase close
Switch lenders?No — stays with current lenderYes — free to shop the market
Typical default movePort when rates are flat/upBreak when rates are well down
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How porting actually works

A port lets you move your existing mortgage — its rate, its terms, and the remaining balance — from the home you're selling to the home you're buying, so you don't trigger a break penalty. Most fixed mortgages in Canada are portable, but the mechanics matter: porting usually requires you to requalify for the mortgage on the new property under current rules (including the stress test), and the sale and purchase have to close within the lender's porting window — often somewhere between 30 and 120 days, sometimes same-day.

Porting shines when your current rate is as good as or better than today's. You're essentially carrying a deal you already like onto your next home and sidestepping a penalty that could run into the thousands. If your home purchase and sale are well-timed and you still qualify, porting is usually the path of least cost and least friction. See our mortgage porting page for the full walkthrough.

When you're buying a more expensive home: the blend

Most movers trade up, which means the new mortgage needs to be bigger than the one you're porting. Lenders handle this with a blended rate: your existing balance keeps its current rate, and the additional money you borrow is priced at today's rate, producing a single weighted-average rate on the combined amount (sometimes called blend-and-extend if the term is also lengthened).

This is generally a good deal when your existing rate is attractive — you protect that rate on most of your balance and only pay today's rate on the new portion. But run the numbers: if today's rates are higher than yours, the blend pulls your overall rate up, and if they're much lower, you might do better breaking entirely and taking the lower rate on the whole amount. The blend is a middle path, and whether it beats breaking depends on the spread between your rate and today's, plus how much extra you're borrowing.

When breaking beats porting

Porting avoids a penalty, but avoiding a penalty isn't the same as getting the best outcome. Breaking your mortgage and taking a fresh one can win in several cases:

• Rates have dropped a lot. If today's rate is well below your current rate, the interest you'd save over the remaining term can be larger than the break penalty — especially on a variable, where the penalty is just three months' interest. Our penalty estimate versus the rate savings tells the story. • Porting isn't practical. Maybe your sale and purchase can't close within the porting window, you no longer requalify, or your lender's port terms are restrictive. • You want to switch lenders or restructure — consolidate debt, change amortization, or move to a lender whose features suit you better. A port keeps you where you are; breaking frees you to shop the whole market.

The decisive number is always the same: penalty to break versus dollars saved on rate and structure.

The one comparison that decides it

Strip away the jargon and the choice reduces to a single side-by-side: the cost of porting (which is mostly your blended rate if you're borrowing more, plus any timing constraints) versus the cost of breaking (the penalty, offset by the savings from today's rate on the full balance). Sometimes porting is obviously cheaper; sometimes a big rate drop makes breaking the clear winner even after the penalty.

The trap is deciding on instinct — 'I'll just port to avoid the penalty' — without checking whether a lower market rate would more than pay for that penalty. We model both paths in dollars, factoring your exact penalty (we estimate the IRD on fixed mortgages, which can be large at the banks), the rate spread, and your timing, then show you the cheaper route. If you're moving, talk to us before you commit to either — the right call is worth thousands. Read our porting explainer to go deeper.

Your situation

Which is right for you?

Moving up, your rate beats today's

Usually: Port (blended)

Keep your good rate on the existing balance and blend in the new money. You protect the rate and skip the penalty.

Rates have dropped sharply since you signed

Usually: Break & refinance

The savings from today's lower rate on your whole balance can exceed the penalty — especially on a variable. Compare in dollars.

Tight closing timelines between sale and purchase

Usually: Often break

If you can't close within the porting window, porting may not be possible. Breaking aligns cleanly to your new purchase date.

You want to switch lenders or consolidate debt

Usually: Break

Porting keeps you with your current lender as-is. Breaking lets you shop the market and restructure — weigh that against the penalty.

FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

Is it better to port or break my mortgage when I move?
Port if your current rate is similar to or lower than today's rates — you keep your rate and avoid the break penalty. Break if today's rates are much lower than yours (the interest savings can exceed the penalty) or if porting isn't practical due to timing, requalifying, or poor port terms. The deciding factor is always the penalty to break versus the dollars you'd save on rate and structure.
Does porting a mortgage avoid the penalty?
Yes — that's the main appeal. Porting transfers your existing mortgage to your new home, so you don't discharge it and therefore don't trigger a break penalty. You typically still have to requalify for the mortgage on the new property and complete the move within the lender's porting window (often 30–120 days), but you carry your rate and terms forward without the penalty.
What is a blended mortgage rate?
When you port and need to borrow more for a pricier home, the lender combines your existing balance (at your current rate) with the new money (at today's rate) into a single weighted-average, or 'blended,' rate. It's a good deal when your existing rate is attractive, since you only pay today's rate on the additional amount. If today's rates are much lower than yours, breaking entirely may still beat the blend.
Can I switch lenders when I move?
Not by porting — a port keeps the mortgage with your current lender. If you want to change lenders (to get a better rate, different features, or to restructure), you'd break your current mortgage and take a new one, paying the penalty. Whether that's worth it depends on how much you'd save with the new lender versus the cost of the penalty. A broker can compare both for you.
How do I know which is cheaper?
Compare two numbers: the all-in cost of porting (mostly the blended rate if you're borrowing more) versus the cost of breaking (the penalty, minus the interest you'd save at today's rate on the full balance). On fixed mortgages the penalty can be a large IRD, so estimate it carefully. Don't default to porting just to avoid a penalty — sometimes a lower market rate more than pays for breaking. We model both in dollars before you decide.

Keep exploring

Mortgage portingPenalty calculatorBlend & extend calculatorRefinancingMortgage renewalBuying your next homeBank vs brokerPorting explainedHow penalties (IRD) work
See all mortgage comparisons

Still deciding? We’ll model both.

We’ll run your real numbers both ways and show you the payment, the risk, and the break cost — no obligation, no credit check to start.