Mortgage Portability Quebec 2026: Keep Your Low Rate When You Move
Selling your home to buy a bigger one, but your 2.89% mortgage rate is way better than today’s rates? With mortgage portability, you can transfer your advantageous rate to your new property and save up to $14,584 over 3 years. Here’s how it works under OSFI guidelines and major Canadian bank policies in 2026.
What Is Mortgage Portability?
Portability is a clause in your mortgage contract that allows you to move your existing loan—with its rate and terms—from one property to another. When you sell and buy simultaneously, you avoid breaking your mortgage and paying the prepayment penalty.
Under OSFI (Office of the Superintendent of Financial Institutions) guidelines, federally regulated lenders must apply the stress test on the additional portion of the loan, but the ported portion generally keeps its original rate.
How Blend-and-Extend Works
If your new property costs more, you’ll need additional financing. Instead of breaking the entire mortgage, your lender can blend the old balance at your existing rate with the new amount at the current market rate. The result is a weighted average rate lower than the market rate.
Major Canadian banks (RBC, TD, BMO, National Bank, Desjardins) almost all offer this option in 2026. Monoline lenders, however, may not. Check your contract or consult a mortgage broker.
Requirements for Porting Your Mortgage
First, the portability clause must be present in your current mortgage contract. Second, the sale and purchase must generally close on the same day (some banks allow 30 to 120 days). Third, you must qualify for the additional amount under the lender’s current criteria, including the stress test on the new portion. Finally, the property must remain in Canada.
Calculation: Portability vs Breaking the Mortgage
Scenario: $350K mortgage at 2.89% (signed 2023), 3 years remaining. Buying new $500K property (20% down = $400K mortgage).
Option A — Break + new loan
- Prepayment penalty: $8,500 (interest rate differential, 3 years remaining)
- New rate: 3.69% fixed 5-year on $400,000
- Monthly payment: $2,063/mo (25-year amortization)
Option B — Port + blend
- Port $350,000 at 2.89%
- Additional $50,000 at 3.69%
- Blended rate: ~3.02% (weighted average)
- Monthly payment: $1,894/mo
Total savings with portability:
- $169/mo × 36 months = $6,084 in reduced payments
- Penalty avoided: $8,500
- Total: $14,584 in your pocket
When Portability Isn’t Worth It
If current rates are equal to or lower than your existing rate, breaking the mortgage and starting fresh may be more advantageous. Similarly, if you’re very close to the end of your term (less than 6 months), the penalty will be low and you could get a better overall rate by simply renewing.
An independent mortgage broker can calculate both scenarios in detail for your specific situation. Never accept your bank’s renewal offer without comparing. For a deeper understanding of penalties, see our guide on mortgage renewal in 2026.
Steps to Port Your Mortgage
First, check your current mortgage contract for the portability clause. Second, contact your lender as soon as you list your home. Third, get pre-approved for the additional amount needed. Fourth, coordinate closing dates for both transactions to respect the required timeline. Fifth, have an independent broker review the blended offer to confirm it’s the best option.
To compare fixed vs variable options for the blended portion, check our article on fixed vs variable mortgages in 2026.
Major Bank Policies in 2026
RBC and TD generally allow a 90 to 120-day window between sale and purchase. National Bank and Desjardins are often more flexible with up to 120 days. BMO typically requires both transactions to close on the same day. Each institution has its own qualification criteria for the additional amount. A mortgage broker can navigate these differences for you.
How much can you borrow for your new property?
Calculate your borrowing capacity including blend-and-extend scenarios.
Calculate my borrowing capacity →