As interest rates rise and moving costs become a challenge, many homeowners are looking for smarter ways to transition into a new property—without losing their current mortgage deal. That’s where portable mortgages come in. They allow you to transfer your existing mortgage to a new home, keeping your rate and terms intact.

But how do portable mortgages actually work—and are they right for you?

Let’s break it down.

What Is a Portable Mortgage?

A portable mortgage allows you to “port” or transfer your existing mortgage—along with its interest rate, remaining balance, and terms—to a different property. In other words, you don’t have to break your mortgage or apply for a brand-new one, which can help you save on fees and avoid higher interest rates.

* Keep your current interest rate

* Avoid prepayment penalties

* Skip starting the mortgage process all over again

It’s especially valuable when interest rates today are higher than when you first bought your home.

How Portable Mortgages Work: Step by Step

Here’s how the process usually goes:

1. Sell your current home

2. Buy a new property (often within a set timeframe—typically 30–120 days)

3. Transfer your existing mortgage to the new home

4. Requalify with your lender (to ensure you still meet income and debt requirements)

5. Adjust terms if needed (such as extending the mortgage amount if the new home costs more)

When Does Porting Make Sense?

A portable mortgage can be ideal when:

Situation. Why Porting Helps

Interest rates have increased. Keeps your low rate

You’re mid-term on your mortgage. Avoids penalties for breaking it

You plan to move soon Keeps financing simple

You don’t want to restart a 30-year term. Keeps same maturity date

However, porting may not be worthwhile if current rates are lower than your existing one.

What If the New Home Costs More?

If the new property is more expensive, your lender may allow a blend-and-extend mortgage—part of your loan keeps your original rate, while the extra amount is financed at the current rate. This leads to a blended interest rate, which is still often cheaper than taking an entirely new mortgage.

Pros and Cons of Portable Mortgages

- Advantages

• Keep your current interest rate

• Avoid penalties for breaking your mortgage

• Easier transition between homes

• Shorter approval process

- Potential Drawbacks

• Not all mortgages are portable

• You must requalify with the lender

• Must move within the lender’s allowed time frame

• New home must meet lender requirements (condition, value, location)

Are Portable Mortgages Common in the U.S.?

While portable mortgages are more common in Canada and the U.K., some U.S. lenders may offer similar options under different names—such as assumable mortgages or mortgage transfers. If you’re planning a move, it’s worth asking your lender whether portability is available or if another financing strategy can help you keep your existing rate.

Is a Portable Mortgage Right for You?

A portable mortgage is best for homeowners who:

• Have a favorable interest rate

• Plan to move before the mortgage term ends

• Want to avoid prepayment penalties

• Are financially stable enough to requalify

Speaking to a mortgage advisor is essential—they can compare porting vs. refinancing vs. taking on a new loan to ensure your next move is financially smart.

In a market with high mortgage rates and affordability challenges, portable mortgages offer flexibility and savings—especially for homeowners who don’t want to give up their favorable rate. If you’re planning a move in the next year or two, understanding how porting works may open the door to your next home—with less financial stress.

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor, MA