In a volatile market where interest rates are bouncing between headlines and household budgets, many Toronto homeowners are clinging to one thing: their low-rate mortgage. But what happens when life changes — a new job, a growing family, or the need to relocate — and it’s time to move?

At The Mortgage Division, we’re seeing a growing interest in mortgage portability — a lesser-known strategy that allows borrowers to transfer their current mortgage (and its terms) to a new property. In today’s uncertain rate environment, this isn’t just a handy feature — it’s a power move.

What Is Mortgage Portability?

Mortgage portability lets you transfer your existing mortgage — including your interest rate, remaining term, and balance — to a new home, without breaking your current mortgage contract.

Think of it as bringing your “old deal” to your “new address.”

Why It Matters Now

Let’s say you locked in a 5-year fixed mortgage at 2.25% in 2021. Fast forward to 2025 — that same rate may now be nearly impossible to find. If you sell and buy a new home without portability, you’ll have to break your mortgage and refinance at today’s higher rates. That’s a double hit: prepayment penalties and increased monthly payments.

Who Should Be Thinking About It?

  • Homeowners with 1–3 years left on their fixed-term mortgage

  • Growing families looking to upsize

  • Downsizers who want to cash out equity, not overpay on interest

  • Real estate investors eyeing a portfolio shift

The Hidden Catch: Not All Mortgages Are Portable

Here’s where it gets tricky — not every lender allows portability, and the terms vary wildly. Some lenders give you a strict 30-day window between selling and buying. Others require you to buy a “like” property or won’t port if you’re downsizing.

That’s why working with an independent brokerage like The Mortgage Division is crucial. We know which lenders offer flexible portability and which ones are more bark than bite.

Bonus Strategy: Blend & Extend

Some lenders also offer a “blend and extend” option — where you can keep part of your old rate and blend it with the current market rate. It’s not always advertised, but it’s a smart way to soften the blow of rising rates without completely losing your old deal.

Final Word

Portability isn’t just a feature — it’s leverage. In a high-rate world, it can save you thousands, keep your financial momentum intact, and make moving a strategic decision instead of a financial setback.

If you’re thinking of moving in the next 1–2 years, now’s the time to review your mortgage strategy with an expert. At The Mortgage Division, we help you move smarter — not just move.