Portability (Mortgage)

Mortgage portability is a contractual feature—governed by the lender's mortgage terms, not BC statute—that permits a borrower to transfer an existing mortgage, including its interest rate and remaining term, from one property to another when moving. The Property Transfer Tax Act, RSBC 1996, c. 378, may still apply to the new property purchase, and the Land Title Act, RSBC 1996, c. 250, governs the discharge and re‑registration of the mortgage charge. Verify current lender‑specific portability rules and timelines with your lender or mortgage broker, as these are contract‑based, not statutory. Verify current details with a BC lawyer, notary, or licensed tax professional before acting.

No. Portability is a voluntary contractual feature; no BC or federal statute mandates that lenders include it in residential mortgage agreements. The Financial Consumer Agency of Canada (FCAC) requires federally regulated lenders to disclose prepayment and portability options clearly, but does not compel them to offer portability. Verify current details with a BC lawyer, notary, or licensed tax professional before acting.

Many lenders permit a port‑and‑increase (or "blend‑and‑extend"), allowing you to carry over your existing rate on the original principal and take a second advance at current rates for the additional funds needed; the combined interest rate is then blended. These terms are lender‑specific and contractual, not governed by BC statute. Verify current details with a BC lawyer, notary, or licensed mortgage professional before acting.

Yes. Porting a mortgage does not exempt you from Property Transfer Tax under the Property Transfer Tax Act, RSBC 1996, c. 378; PTT is calculated on the fair‑market value of the new property at the standard rates—1% up to $200,000, 2% on the portion from $200,000 to $2,000,000, 3% on the portion from $2,000,000 to $3,000,000, and 5% above $3,000,000 (as of 2026‑07‑27 — verify current)—unless you qualify for the First‑Time Home Buyer or Newly Built Home Exemption. Additional PTT under Part 2 of the PTTA may apply if you are a foreign entity or taxable trustee (as of 2026‑07‑27 — verify current). Verify current details with a BC lawyer, notary, or licensed tax professional before acting.

Porting requires the full discharge of the mortgage charge from the old property's title under the Land Title Act, RSBC 1996, c. 250, and simultaneous registration of a new mortgage charge on the new property; the lender treats this as a contractual transfer of the debt obligation and interest‑rate terms. The sale proceeds from the old property typically fund any shortfall or are applied to satisfy the existing principal, and any top‑up is advanced at closing on the new property. Verify current details with a BC lawyer, notary, or licensed mortgage professional before acting.

Time limits are set by the lender's mortgage contract, not by BC statute; most lenders require that the sale of the old property and the purchase of the new property close within 30 to 120 days (as of 2026‑07‑27 — verify current) to qualify for portability. Missing the lender's deadline may trigger prepayment penalties under the mortgage agreement. Verify current details with a BC lawyer, notary, or licensed mortgage professional before acting.

Yes, many lenders permit porting when downsizing, but you may be required to prepay the difference between the old principal and the new lower principal, which can trigger an interest‑rate differential (IRD) penalty or three‑months' interest penalty on the prepaid amount, as set out in your mortgage contract. These penalties are contractual, not regulated by BC statute. Verify current details with a BC lawyer, notary, or licensed mortgage professional before acting.

Porting a mortgage does not itself affect PTT exemption eligibility; however, if you previously owned an interest in a principal residence anywhere in the world, you are not a "first‑time home buyer" under the Property Transfer Tax Act, RSBC 1996, c. 378. The full exemption applies to properties up to $835,000 (as of 2026‑07‑27 — verify current) and a partial exemption to properties up to $860,000 (as of 2026‑07‑27 — verify current), provided all other conditions in the PTTA are met. Verify current details with a BC lawyer, notary, or licensed tax professional before acting.

No. Portability means the existing borrower transfers their own mortgage to a new property they are purchasing; assumption means a buyer takes over the seller's existing mortgage on the same property, subject to lender approval. Both are contractual arrangements; neither is governed by specific BC consumer‑protection statutes beyond general contract and disclosure principles under federal financial‑institution rules (FCAC). Verify current details with a BC lawyer, notary, or licensed mortgage professional before acting.

Review your signed mortgage commitment letter and mortgage terms; portability clauses and any associated fees, timelines, and top‑up rules are contractual and disclosed in these documents. The Financial Consumer Agency of Canada (FCAC) provides educational resources on prepayment and portability for federally regulated lenders. Verify current details with your lender, mortgage broker, BC lawyer, or notary before acting.