Portability (Mortgage)

Mortgage portability is a lender-specific feature that allows a borrower to transfer their existing mortgage — including its current interest rate and remaining term — from a property being sold to a new property being purchased. This can be advantageous when the existing rate is lower than prevailing market rates at the time of the move. The feature is governed by the terms of the individual mortgage contract rather than by a specific BC statute, so borrowers should review their mortgage agreement carefully.

Under the Real Estate Services Act (RESA) and the rules administered by the British Columbia Financial Services Authority (BCFSA), licensees must act in the best interests of their clients and provide accurate information within their competence. Because mortgage portability involves detailed lender-specific financing terms, a licensee who is not also a licensed mortgage broker must be careful not to provide mortgage advice beyond their scope, and should refer clients to a qualified mortgage professional. BCFSA guidance clarifies the boundaries between real estate licensee and mortgage broker activities.

Property Transfer Tax (PTT) is assessed on the fair market value of the property being acquired, not on the financing method used, so porting a mortgage does not exempt a buyer from PTT obligations under the BC Property Transfer Tax Act. PTT is calculated at 1% on the first $200,000 of fair market value, 2% on the portion between $200,000 and $3,000,000, and 3% on the residential portion above $3,000,000, with an additional 2% on the residential portion exceeding $3,000,000. Any applicable exemptions, such as the First-Time Home Buyers' Program (full exemption up to $835,000), are assessed independently of the mortgage structure.

Lenders typically impose a specific window — often ranging from a few days to 90 days or more — within which the sale of the existing property and the purchase of the new property must close in order for portability to be approved. These timelines are set by individual lender policies and are not prescribed by BC statute. Borrowers should confirm the exact porting window with their lender well in advance of listing their property to avoid losing the benefit.

When the new property requires a larger mortgage than the existing balance, the lender may offer a 'blend and extend' arrangement, where the ported amount retains its original rate and the additional (top-up) amount is advanced at the current market rate, resulting in a blended rate for the combined mortgage. The specific blending formula and any administrative fees are determined entirely by the lender's policies and the mortgage contract. BC borrowers should obtain written disclosure of the blended rate calculation before agreeing to the top-up.

When a mortgage is ported to a strata lot purchase in BC, the lender will typically require current strata documentation as part of its underwriting process, including the Form B Information Certificate issued under the Strata Property Act (SBC 1998, c. 43), which discloses strata fees, special levies, and bylaw information. The lender may also review the depreciation report and the status of the contingency reserve fund to assess the financial health of the strata corporation. These strata-specific due diligence steps apply regardless of whether the financing is new or ported.

A lender's willingness to accept portability to an ALR property depends on its own lending criteria and the property's permitted uses under the Agricultural Land Commission Act (SBC 2002, c. 36), as ALR properties face restrictions on subdivision and non-farm use that can affect marketability and security value. Lenders typically conduct a new appraisal and title review for any ported mortgage regardless of land classification. Borrowers considering an ALR property should consult the Agricultural Land Commission directly regarding applicable use restrictions.

The First-Time Home Buyers' Program exemption under the BC Property Transfer Tax Act is assessed based on the buyer's eligibility status and the fair market value of the property acquired — it is not affected by the type of financing used, including whether a mortgage is ported. As of 2026, the full exemption is available on properties with a fair market value up to $835,000, with a partial exemption available up to a higher threshold; consult the current BC Ministry of Finance guidance for the exact partial-exemption ceiling. A ported mortgage neither enhances nor diminishes eligibility for this exemption.

When personal financial and identifying information is collected, used, or disclosed by real estate licensees, mortgage brokers, or lenders in connection with a port transaction, British Columbia's Personal Information Protection Act (PIPA) requires that collection be limited to what is necessary, that individuals be notified of the purpose, and that appropriate consent be obtained. Parties involved in the transaction must maintain reasonable security safeguards for that information. Any unsolicited commercial electronic communications related to the transaction must also comply with Canada's Anti-Spam Legislation (CASL).

When a borrower dies, their mortgage obligations and any portability rights become part of their estate, which is administered under the Wills, Estates and Succession Act (WESA) of BC by the executor or administrator. Portability is a personal contractual right and whether it can be exercised by the estate or transferred to a beneficiary depends entirely on the lender's mortgage contract terms, not on WESA itself. The estate's representative should contact the lender promptly to determine whether the portability feature remains available within any applicable deadlines.