Love Your Low Mortgage Rate? Here's How You May Keep It When You Move
Mortgage Porting: Can You Keep Your Low Rate When You Move?
f you locked in a 4% mortgage rate a few years ago, giving it up now when rates hover around 7% can feel like a financial setback. But what if you need to sell your home and buy another?
That’s where mortgage porting comes in. Common in Canada and the U.K., porting lets you transfer your existing mortgage rate to a new property. While rare in the U.S., it’s worth asking your lender. If porting isn’t available, they may offer alternative strategies to help you secure a lower rate on your next mortgage.
- Mortgage porting lets you transfer your existing loan and interest rate to a new home—preserving favorable terms.
- This option is common in Canada and the U.K., but remains rare in the U.S..
- If porting isn’t available, ask your lender about rate-reduction alternatives, such as assumable mortgages, shorter loan terms, or buying points.
Key Takeaways
How Mortgage Porting Works
Mortgage porting lets you transfer your existing loan and its interest rate to a new home. You’ll need to reapply and requalify, just as you did originally. If your financial profile has worsened, approval may be more difficult.
Here’s how it works: you sell your current home, use the proceeds to pay off the remaining mortgage, and your lender reissues the loan for your new property at the same rate.
If your new home costs more, your lender may offer a second loan to cover the difference typically at a higher interest rate.
Alternatives to Mortgage Porting: How to Secure a Better Rate
If you're a U.S. homeowner, your lender likely doesn’t offer mortgage porting but there are other ways to lock in a more favorable rate:
- Assume the seller’s mortgage: If the seller has an assumable loan with a low rate, taking it over may be smarter than applying for a new mortgage at today’s higher rates.
- Choose a shorter loan term: In May 2025, 30-year fixed mortgages averaged 7.11%, while 15-year fixed loans were closer to 6.11%. Though monthly payments are higher, you’ll save significantly on interest over time.
- Explore adjustable-rate mortgages (ARMs): ARMs may offer lower initial rates, especially with teaser periods. But in May 2025, ARMs averaged 7.5%, slightly above fixed rates—so compare carefully.
- Make a larger down payment: Putting more money down can reduce your interest rate and overall loan cost, since you’re borrowing less.
- Buy mortgage points: Points are prepaid interest, typically reducing your rate by 0.25% per point. For example, paying two points could lower your rate by 0.50%.
Improving your credit score is one of the most effective ways to qualify for a better mortgage rate. Lenders use credit scores to assess risk so the higher your score, the more likely you are to receive lower interest rates, better loan terms, and reduced fees.
Even small improvements like paying down credit card balances, avoiding new debt, and correcting errors on your credit report can make a noticeable difference in your loan offers. It's a smart move before applying for any new mortgage.
The Bottom Line
Mortgage porting is still rare in the U.S., but that doesn’t mean you’re stuck with today’s higher rates. There are several alternative strategies from assumable loans to shorter terms and point-buying that can help you secure a better deal.
Above all, shop around. Mortgage rates and terms can vary widely between lenders, and comparing offers is one of the most effective ways to save thousands over the life of your loan.
