Should you buy your next Markham home before or after your mortgage renewal?If your renewal is close, timing can save money. Options include porting your mortgage to the new home and blending in extra funds, breaking the mortgage and paying a penalty, or buying after renewal. Porting can avoid a penalty but usually has a limited window between sale and purchase. On fixed mortgages, breaking early often costs the greater of three months’ interest or the interest rate differential. After the Bank of Canada raised its rate to 2.5% on October 28, 2026, compare every option with real quotes before you list or offer.
Many Markham owners thinking about a bigger home are also a year or less from renewal. The mortgage and the move are connected, and good timing can protect thousands of dollars.
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, encourages move-up buyers to speak with their lender or broker before listing, so the sale, purchase and mortgage are planned together.
Your options
| Option | How it works | Watch for |
|---|---|---|
| Port | Move your existing mortgage and rate to the new home | Time limit between closings; lender approval of new home |
| Port and increase | Port, then borrow more at a blended rate | Blended rate depends on current rates |
| Break and replace | Pay the penalty, take a new mortgage | Penalty cost, especially on fixed rates |
| Wait for renewal | Buy after your term ends | Market and rates may change while you wait |
| Bridge financing | Short-term loan when closings do not line up | Interest and fees |
Porting basics
Many fixed-rate mortgages can be ported, but rules vary. Lenders often require the sale and purchase to close within a set window, and you must qualify for the new home. If you need more money, the lender usually blends your current rate with today’s rate on the new portion. Ask for the porting terms in writing.
Moving up with a renewal coming?
Michael John Lau can help plan your sale and purchase around your mortgage.
Book a consultationSearch Markham homesPrefer to talk? Call the Kaizen Real Estate Team at (647) 370-8885.
Penalties
Variable mortgages usually carry a penalty of about three months’ interest. Fixed mortgages often charge the greater of three months’ interest or the interest rate differential, which can be much larger at big banks. Ask your lender for the exact payout figure before deciding.
Rates after October 28, 2026
The Bank of Canada raised its policy rate to 2.5% on October 28, 2026. Variable rates and lines of credit follow prime, and the lowest five-year variable rate was expected to rise from about 3.45% to 3.70%, while the best five-year fixed rate was about 4.34%. A lower rate you already hold can be worth keeping through porting.
Switching at renewal
Since November 21, 2024, borrowers who switch lenders at renewal with the same amount and amortization no longer need to pass the stress test. A move with a larger mortgage is treated as new borrowing and is qualified normally. See the Markham mortgage renewal guide.
Coordinating the sale and purchase
- Match closing dates, or allow a short gap covered by bridge financing.
- Consider a sale of property condition if you buy first. See sell first or buy first.
- Get a rate hold, often up to 120 days, on any new borrowing.
Before you list or offer
- Get your mortgage terms, porting rules and payout penalty in writing.
- Get a pre-approval for the new purchase.
- Compare porting, breaking and waiting with real numbers.
- Plan closing dates with your REALTOR® and lawyer.
Ultimately, the decision is yours. The goal is to make sure you have all the information before you move.
The best move-up plan treats the mortgage as part of the move. Call the Kaizen Real Estate Team at (647) 370-8885 or book a consultation.
Frequently asked questions
Can I port my mortgage to a new home?
Often yes, especially with fixed rates. Lenders set a time window and you must qualify for the new home.
What is a blended rate?
When you port and borrow more, the lender blends your current rate with today's rate on the extra amount.
How much is the penalty to break a mortgage?
Usually about three months' interest on variable mortgages, and the greater of three months' interest or the IRD on fixed.
Should I wait for renewal before buying?
It can avoid a penalty, but the market and rates may change. Compare the cost of waiting with the penalty.
Do I need the stress test if I switch lenders at renewal?
Not for a straight switch with the same amount and amortization, since November 21, 2024.
How did the October 2026 rate hike affect move-up buyers?
Variable rates and lines of credit rose with prime, so a lower existing rate may be worth porting.
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® with the Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. Licence #4784577. Call (647) 370-8885. Rate decision and mortgage rates are as reported by MoneySense with Ratehub (October 28, 2026). The renewal switch rule is from OSFI (effective November 21, 2024), as reported by Ratehub. Porting and penalty rules vary by lender. Speak with a licensed mortgage professional. This article is general information only and is not financial, legal or tax advice. Not intended to solicit buyers or sellers currently under contract with another brokerage.
