Sell before the term ends: repay vs port
Compare ending a mortgage with the possibility of transferring it to another property.
The key difference
Selling before a closed term ends may trigger a prepayment charge. Porting may let you transfer a mortgage to another property, subject to the lender’s conditions. Do not assume that a portable mortgage guarantees approval for the next property.
| Consideration | Repay and end the mortgage | Explore porting |
|---|---|---|
| Obtain from the lender | A dated payout statement showing the charges. | Written portability rules, deadlines, and approval requirements. |
| Uncertainty to resolve | The charge applicable on the actual payout date. | Whether the new property and borrowing amount qualify. |
Questions to take to the lender
- What happens if the sale and purchase dates do not line up?
- Compare the complete transaction costs rather than only the advertised rate.
Explore the published products
Sources and scope
General information for comparing options. Product terms and individual eligibility must be confirmed with the lender.
Continue exploring
Renew with your lender vs switch lenders
Compare a renewal offer against switching costs and another lender’s conditions.
HELOC vs mortgage refinance
Compare revolving access to equity with changing the mortgage borrowing arrangement.