What porting a mortgage means
Porting lets you take your existing mortgage — rate, term, and balance — and move it to the home you are buying. Because you are not breaking the contract, you avoid the prepayment penalty, which matters most if you hold a low fixed rate you would hate to lose.
Porting is generally only available on closed mortgages and must be done within your lender's time window around the sale and purchase closing dates.
Blending when you need a bigger mortgage
If your new home costs more and you need to borrow additional funds, the lender combines your existing rate with the current rate on the new money. This is a 'blend and extend' (which also resets your term) or a 'blend to term.'
The result is a single blended rate that sits between your old rate and today's rate — usually cheaper than breaking the mortgage and starting fresh at current rates.
What bridge financing solves
Bridge financing is a short-term loan that lets you close on your new home before the sale of your old one completes. It advances the equity tied up in your current property so your down payment is available on time.
It is typically used for a gap of a few days to a few months, secured against your existing home, and repaid as soon as that sale closes.
What bridge financing costs
Expect to pay interest at a higher rate than your mortgage (often prime plus a few points) for the bridge period, plus a modest administration or legal fee. Because the term is short, the total dollar cost is usually small.
To arrange a bridge loan, lenders generally require a firm, unconditional sale agreement on your current home so they know exactly when and how the loan will be repaid.