Porting mortgage default insurance in Canada: CMHC's rules

What default insurance is

Mortgage default insurance protects the lender, not you, if a mortgage is not repaid. If your mortgage is insured, a premium was paid for that insurance when the mortgage was set up. Porting the insurance means carrying that coverage over to a mortgage on your next home instead of paying for it again from scratch.

When porting costs no additional premium

CMHC's page "CMHC Portability" sets three conditions for straight portability:

The amortization of the new loan cannot exceed the remaining amortization of the original loan. Amortization is the total time to pay the loan off.
The new loan-to-value (LTV), the mortgage as a share of the property's value, is equal to or less than the current LTV of the existing property.
The new loan amount is equal to or less than the current outstanding balance.

If the new loan meets all three conditions, CMHC charges no additional premium.

When you borrow more on the new home

If you need to borrow more on the new home, CMHC charges an additional premium, with a credit for the premium you already paid. The credit depends on the time from your original closing to the new insurance request:

within 6 months: 100% credit;
within 12 months: 50% credit;
within 24 months: 25% credit.

CMHC says the insurance is portable beyond 2 years, but a premium credit will not apply.

What insurance portability means for an Ontario homeowner

If you are selling and buying while your mortgage is insured, portability can save part or all of a new premium. The premium-credit clock runs from your original closing, not from your renewal.

CMHC's page also sets a deadline for using portability: "The insurance request using the portability feature must be received within 6 months of the original property's closing date." Before you set closing dates for your sale and purchase, ask your lender which closing date the portability deadline counts from. The new mortgage is still subject to lender approval.

What CMHC's portability rule does not cover

Porting the mortgage itself. Moving the insurance does not move the mortgage: whether you can carry your rate and term to a new home depends on your lender's terms. Many lenders allow porting within their own time limits, so ask yours what its limits are.
Other insurers. CMHC's rules cover CMHC-insured mortgages; other mortgage insurers set their own portability rules, which we have not checked here. Your lender can tell you which insurer covers your mortgage.
Uninsured mortgages. If your mortgage was never insured, there is no insurance to port.

Sources

CMHC — CMHC Portability, no page date shown (©2026), checked 2026-10-26.

What to do next

If you are moving and your mortgage is insured, start at Can your bank do better and we'll compare porting with a new mortgage, subject to lender approval. Or use our call-me-back form and we will go through the timing with you.

Common follow-up questions

Does porting the insurance mean I avoid a prepayment penalty?

Not on its own. The prepayment penalty depends on your mortgage contract. If your lender lets you port the mortgage itself, you may not need to break the mortgage; if you do break the mortgage, a penalty generally applies. See prepayment penalties.

What if more than two years have passed since closing?

CMHC says the insurance is still portable beyond 2 years, but no premium credit applies. CMHC's page gives no further detail, so ask your lender how it will treat porting your insurance after two years.

How do I know whether CMHC insures my mortgage?

Ask your lender, or check your mortgage documents. If another insurer covers your mortgage, that insurer's own rules apply.

This page is general information for Ontario readers, not financial, legal or tax advice. Public rules on this page were checked on 2026-10-26; your mortgage contract governs. Every mortgage is subject to lender approval.