Porting vs breaking
your mortgage —
which saves more when you move?
Port your mortgage to skip the break penalty. Break it if today’s lower rates more than pay for that penalty. The only way to know is to run both numbers — which is exactly what we do before you move.
Four factors that
decide the choice.
Port to avoid the penalty. Break when today’s rates more than cover it. The deciding factor is always the comparison in dollars.
Port avoids the break penalty entirely
Porting carries your existing mortgage to your new home — same rate, same terms — so you don't discharge it and don't trigger a break penalty. Breaking a fixed mortgage triggers the greater of 3 months' interest or the IRD, which can run into five figures at the major banks.
The right rate depends on the spread
Porting keeps your current rate — blended with today's rate if you borrow more for a pricier home. Breaking gives you today's rate on the whole balance. If today's rates are materially lower than yours, breaking can more than pay for the penalty.
Porting requires your transactions to align
Lenders give you a porting window — some require simultaneous closing, others allow up to 120 days between sale and purchase. If your timelines don't fit, porting may not be possible. Breaking aligns cleanly to your new purchase close date.
Breaking frees you to shop the whole market
A port keeps you with your current lender as-is. Breaking lets you move to any lender — potentially one with a better rate, lower fees, or features that fit your situation. If your lender's terms are mediocre, breaking may add real value beyond the rate.
How to decide
before you move.
Penalty first, savings second, decision last. That order matters — especially on fixed mortgages where the IRD can be substantial.
Understand your current mortgage
Know your remaining balance, current rate, maturity date, and lender. These determine your break penalty and whether your lender's port window actually fits your sale and purchase dates.
Compare both options in dollars
Penalty to break versus interest saved at today's rate on the full balance — that one comparison decides it. We estimate your IRD (often larger at big banks due to posted-rate discounts) and model both paths before you commit.
Get pre-approved for the right structure
Whether you port or break, you'll re-qualify on the new property. We prepare your file for the lender whose terms best match your situation — sometimes the same lender, sometimes a better one.
Which is right
for you?
Tap any situation below to see how we approach it.
If you’re…Moving up, and your current rate beats today's rates
Moving up, and your current rate beats today's rates
Keep your good rate on the existing balance and blend in the new money at today's rate. You protect your rate and skip the penalty entirely.
Model my portIf you’re…Rates have dropped sharply since you signed
Rates have dropped sharply since you signed
The savings from today's lower rate on your whole balance can exceed the penalty — especially on a variable, where the penalty is just three months' interest. We compare in dollars.
Run the comparisonIf you’re…Your sale and purchase can't close within the porting window
Your sale and purchase can't close within the porting window
If your timelines don't fit your lender's porting window, porting may not be possible at all. Breaking aligns cleanly to your new purchase close date.
Check my optionsIf you’re…You want to switch lenders or consolidate debt
You want to switch lenders or consolidate debt
Porting keeps you with your current lender as-is. Breaking lets you shop the whole market and restructure — weigh that freedom against the cost of the penalty.
Explore my optionsIf you’re…You're downsizing to a less expensive home
You're downsizing to a less expensive home
You can only port the balance the new purchase requires. If your mortgage is larger than the new price allows, you'll pay a partial penalty on the excess. We model both paths before you decide.
Run my numbersIf you’re…Your lender has restrictive port terms or you no longer requalify
Your lender has restrictive port terms or you no longer requalify
Not all mortgages are freely portable. If your lender's port conditions are onerous, or you can't pass the stress test on the new property, breaking and shopping the market may be the only practical path.
Start my applicationPort your mortgage
vs. break & refinance.
Every factor that matters — penalty, rate, timing, and lender freedom — in a single comparison.
- ✓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
- ✓Today's rates are well below your current rate
- ✓Porting isn't practical (timing, requalifying, or poor port terms)
- ✓You want to switch lenders or restructure significantly
- ✓The rate savings clearly exceed the penalty
| Factor | Port your mortgage | Break & refinance |
|---|---|---|
| Break penalty | Avoided | Paid (fixed: usually the greater of 3 months' interest or the IRD) |
| Your rate | Kept (blended if you borrow more) | Today's rate on the whole amount |
| Best when rates are | Similar or higher than yours | Much lower than yours |
| Borrowing more for a pricier home | Blend-and-extend at a mixed rate | All at today's rate |
| Requalifying | Usually required for the new property | Required — it's a new mortgage |
| Timing | Must port within the lender's window (same day to ~120 days) | Aligns to your new purchase close |
| Switch lenders? | No — stays with current lender | Yes — free to shop the market |
| Typical default move | Port when rates are flat or up | Break when rates are well down |
Common questions,
clear answers.
Penalty math, blended rates, lender choice, and timing — answered plainly.
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 (which varies by lender), 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, especially at big banks that compare against their posted rate minus your original discount, 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.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a mortgage specialist in your city
Whether you're porting your mortgage or breaking to capture a lower rate, having a licensed broker run both numbers before you decide can save you thousands. Find a specialist in your city who knows your local market.