Can I port my mortgage to a new home in Ontario, and how does it work?

You may be able to port your mortgage, but only if your mortgage is eligible, so check with your lender first. Porting lets you transfer your existing mortgage to a new home when you sell and buy, and keep your existing rate and terms. It avoids breaking the contract and taking out a new mortgage. Your mortgage contract decides whether and how this works for you.

If the new home costs less than your mortgage amount, you may pay a prepayment penalty. Breaking a closed mortgage instead usually costs the higher of three months' interest on the balance or the interest rate differential, plus a possible administration fee. With an open mortgage, you can prepay without a penalty.

Timing windows, blended rates and whether you must qualify again depend on your lender and your mortgage contract, so ask your lender and have a lawyer review the paperwork before you commit. Mortgaging a matrimonial home generally needs the other spouse to join in or consent, unless an exception applies. This can still apply after separation if the home was the family residence at the time of separation.