Portability
It lets you carry your mortgage — rate, term, and balance — to a new property, without breaking the contract and therefore without a penalty. The lender requalifies the borrower and appraises the new property: the clause is not an automatic right.
The blend and extend
If the new property costs more, the lender adds an amount, often at a different rate. The resulting mortgage then carries two rates, and maturities may be harmonized or kept separate depending on the lender.
Assumability
It lets the buyer of your property take over your mortgage on existing terms, if they qualify. Attractive when your rate is below market, it becomes a genuine selling point.
The deadlines are tight
Most clauses impose a window between the sale and the new purchase, often short. Missing it forfeits the benefit and triggers the penalty. Closing dates must be planned accordingly.
What is not covered
A move to another province, a different use — a rental building rather than a home — or a property the lender refuses as security can all exclude portability, even where the clause exists in the contract.
Negotiate it up front
These clauses are compared when choosing a mortgage, not three years later. A marginally lower rate without portability costs far more if you move mid-term.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.