Portable Mortgage: What It Is, How It Works

What Is a Portable Mortgage? 

A portable mortgage is a home loan that you essentially transfer from one property to another while keeping the same lender and terms, including your interest rate, without facing any penalties or fees. Mortgage porting is more common in Canada and the United Kingdom, but it isn’t widely used in the United States. Learn more about what portable mortgages are and how they work.

How Portable Mortgages Work

Portable mortgages need to include a portability clause. This allows you to transfer your mortgage to another property while keeping your original lender and terms.

Most mortgages in the U.S. are only approved for individual properties. This means that if you move, you’ll have to apply for a new mortgage with a new interest rate, repayment terms, and potentially a new lender. In this case, homeowners typically sell their home and use the proceeds to pay off their current mortgage before getting a different one for a new property. Similarly, porting a mortgage can only take place if you’re selling your old home and buying a new one.

When you port a mortgage, you technically pay off your existing loan and take out a new one, but you get to keep your loan terms, interest rate, and lender. You’ll still need to apply and qualify if you want to port your current mortgage.

Can You Port Your Mortgage in the United States?

Canadian and U.K. mortgages often have portable clauses, but these clauses aren’t common in the U.S.

Mortgage interest rates have been near 6.5% to 7% in 2024—more than double what they were early in the pandemic. With rates that high, many homeowners—even those who want to move—may not see a benefit in leaving their homes and losing their lower interest rate with a new mortgage.

A portable mortgage would allow homeowners to sell their homes while keeping their favorable interest rates and still buy a new house. But because portable mortgages aren’t common in the U.S., they’re unlikely to influence U.S. housing market trends. 

Alternatives to a Portable Mortgage

If you don’t have a portable mortgage and can’t get one, there are other options. 

Most borrowers who are currently paying their mortgage and selling their home will use the proceeds sale to pay off that mortgage. Then they will take out a new home loan when they buy their new house.

But there are other ways to move your mortgage to another property:

• Mortgage assumption: An assumable mortgage is when you transfer your current mortgage to the buyers of your home when you sell it. Not only do they get your home, they also get your debt. Both parties, as well as the financial institution managing this mortgage, have to agree to this transfer.
• Mortgage servicing transfer: A mortgage servicing transfer is when your current mortgage lender sells your mortgage agreement to another lender. Nothing about your agreement changes—you’ll still have the same interest rate, repayment terms, and monthly payment. But who you make those payments to will change. Most people going through a mortgage servicing transfer don’t need to do anything except possibly set up payments with a new servicer.

The Bottom Line

Portable mortgages, which can be transferred from one property to another, aren’t common in the U.S. but are more common in other countries, such as Canada and the U.K. Whether a portable mortgage is right for you will depend on the terms of the mortgage and your personal financial situation. Consider consulting with a financial professional for more guidance on your specific situation.