If you locked in a low mortgage rate a few years ago, you might feel stuck. Your family needs more space, your commute has changed, or life circumstances demand a move. But walking away from that fantastic rate feels painful when today’s rates sit significantly higher. The good news? You do not have to choose between your financial advantage and your next chapter. Canadian homeowners have options that let them keep a low mortgage rate while still making the move they need.

At Kiani & Co., we work with buyers and sellers navigating exactly this situation. Led by Sarah Kiani, Realtor, our team helps clients across Burlington, Oakville, and Hamilton make smart moves without sacrificing their financial position. In this guide, we explain the strategies that can help you hold onto your low mortgage rate while transitioning to your next home.

Understanding the Current Rate Environment

The Bank of Canada has held its policy rate at 2.25% since October 2025. On June 10, 2026, the Governing Council announced it would maintain this rate amid economic uncertainty and rising energy prices. Most major banks have set their prime rate at 4.45%, which means variable mortgage rates currently range from approximately 3.3% to 4.5%, depending on the lender discount. Fixed rates for a five-year term typically range from 3.9% to 5.0%.

If you secured a fixed rate between 2020 and early 2022, you likely locked in somewhere between 1.5% and 2.5%. That difference adds up significantly. On a $500,000 mortgage with a 25-year amortization, moving from a 2% rate to a 4.5% rate increases monthly payments by approximately $660. Over a five-year term, that totals roughly $40,000 in additional interest.

Waiting for rates to drop dramatically is not a reliable strategy. Most economists expect the Bank of Canada to hold steady through 2026, with some forecasting modest increases if inflation pressures persist due to global energy prices. The next rate announcement is scheduled for July 15, 2026. Rather than putting your life on hold, consider the tools available to keep your low mortgage rate while making your move.

Porting Your Mortgage: Keep Your Low Mortgage Rate Intact

Porting is the most direct way to keep your low mortgage rate when moving. It allows you to transfer your existing mortgage, including your current rate and remaining term, from your old property to your new one.

Here is how it works. When you sell your current home and purchase a new one, you ask your lender to move your existing mortgage to the new property instead of paying it off and starting fresh. Because you are not breaking your contract, you avoid prepayment penalties entirely. Your rate, balance, and remaining term carry over.

Most major Canadian lenders, including RBC, TD, Scotiabank, CIBC, and BMO, offer portable mortgages on their standard fixed-rate products. However, some deeply discounted or promotional mortgages do not include portability. Check your mortgage contract or speak with your lender to confirm whether your mortgage qualifies.

Key considerations for porting:

Your new property must qualify under your lender’s current guidelines. You will need to meet their income and credit requirements, and the property itself must pass their appraisal process.

Timing matters. Most lenders give you a porting window of 30 to 120 days between closing on your sale and closing on your purchase. Plan your transaction dates carefully to stay within this window and preserve your low mortgage rate.

Blend and Extend: When You Need More Money

What if your new home costs more and you need to borrow additional funds? Porting alone will not cover the difference. This is where a blend and extend strategy becomes valuable.

With a blended mortgage, your lender combines your existing low mortgage rate with the current market rate on the additional funds. The result is a weighted average rate that falls between the two, giving you a better overall rate than if you had to refinance entirely at today’s prices.

Example: Suppose you owe $400,000 at 2.2% and need an additional $200,000 for your new home. Your lender offers the new money at 4.8%. Instead of paying 4.8% on the entire $600,000, your blended rate might work out to approximately 3.1%. That saves you significant money over the term compared to taking a fresh mortgage at today’s full rate.

The exact calculation depends on your lender’s formula and the remaining term on your existing mortgage. Ask your mortgage specialist to run the numbers for your specific situation. In many cases, the blended approach lets you upsize while preserving much of the advantage from your low mortgage rate.

Downsizing? You Can Still Port

Porting is not just for buyers moving up. If you are downsizing to a smaller home, you can often port your mortgage to preserve your rate. However, if your new mortgage amount is smaller than your current balance, you may face a prepayment penalty on the difference.

For example, if you owe $500,000 but only need $350,000 for your new home, you are effectively paying off $150,000 early. Your lender may charge a penalty on that portion. The penalty calculation varies by lender and mortgage type, so review your terms carefully.

Even with a partial penalty, keeping your low mortgage rate on the remaining balance often makes financial sense. Run the numbers with your mortgage professional to compare the total cost of porting versus breaking your mortgage entirely.

Understanding Prepayment Penalties

If porting is not an option, breaking your mortgage becomes necessary. Many homeowners fear massive penalties, but the reality depends on your mortgage type and current market conditions.

Fixed-rate mortgages typically calculate penalties using the greater of three months’ interest or the Interest Rate Differential (IRD). The IRD compares your contract rate to current rates for a similar term. Here is the important point: when current rates are higher than your locked-in rate, the IRD calculation often produces a lower number. In today’s environment, many homeowners breaking a low mortgage rate find their penalty defaults to the three-month interest option, which is often more manageable than expected.

Variable-rate mortgages usually carry simpler penalties, typically three months’ interest. This makes them easier to break if circumstances require it.

Some lenders will refund or waive your penalty if you take a new mortgage with them within 30 to 90 days. If you must break your mortgage, ask about this option before assuming you will lose the full penalty amount.

When Life Demands a Move

Sometimes waiting simply is not an option. Your family is growing and you need more space. You have accepted a job in a new city. A relationship has ended and you need to restructure your living situation. These transitions happen regardless of the interest rate environment.

The strategies above, including porting, blending, and strategic penalty management, give you tools to navigate these transitions without surrendering your financial position entirely. You do not have to choose between moving forward with your life and protecting your low mortgage rate. With careful planning, you can often do both.

Work with a mortgage professional who can review your specific contract, calculate your options, and help you structure a transaction that minimizes cost. Combine that expertise with a knowledgeable real estate team who understands timing, negotiation, and market conditions, and you can make your move with confidence.

Ready to Make Your Move?

If you are weighing a move but worried about losing your low mortgage rate, start by understanding your options. Review your mortgage contract for portability provisions. Speak with your lender or a mortgage broker about porting and blending. Then connect with a real estate professional who can help you navigate the transaction.

At Kiani & Co., we help clients across Burlington, Oakville, and Hamilton make strategic moves that align with their financial goals. Whether you are upsizing, downsizing, relocating, or navigating a life transition, we provide the guidance you need.

Explore current listings through our home search, or reach out to our team to start the conversation. Your next chapter does not have to wait, and your low mortgage rate does not have to disappear.

Frequently Asked Questions

Can I port my mortgage to a different lender?

No. Porting transfers your mortgage to a new property within the same lender. If you want to switch lenders, you will need to break your existing mortgage and take a new one, which may involve penalties.

How long do I have to port my mortgage?

Most lenders offer a porting window of 30 to 120 days between closing on your sale and closing on your purchase. Confirm the specific timeline with your lender before planning your transactions.

What if I need more time between selling and buying?

If you exceed your lender’s porting window, you may lose the ability to transfer your rate. In some cases, lenders offer extensions or bridge financing options. Discuss your timeline with your mortgage specialist early in the process.

Should I wait for rates to drop before moving?

That depends on your circumstances. Most forecasts suggest the Bank of Canada will hold rates steady through 2026, with some economists predicting modest increases if energy-related inflation persists. A significant rate drop is not guaranteed. If your life requires a move, the tools above can help you proceed without sacrificing your current rate entirely.