Homeowner Guide · Updated 2026
Mortgage Renewal, Switching & Porting
Written by the Turner Realty Team · Reviewed August 2026
Your mortgage renewal isn't a formality — it's a real opportunity to shop your rate, and the rules around switching, porting, and breaking a mortgage early are more flexible than most homeowners realize. Here's the current framework, in plain terms. This is general information, not financial advice; confirm current numbers with a mortgage professional before making a decision.
The 21-Day Renewal Disclosure Rule
Federally regulated lenders (banks, and federally regulated trust/loan companies) are legally required to send you a renewal disclosure statement at least 21 days before your mortgage matures. That statement has to spell out your renewal terms, and the lender can't sneak in a change that increases your cost of borrowing between the day you receive it and the day the mortgage actually renews.
Switching Lenders at Renewal — Without the Stress Test
Since November 2024, a straight switch to a different federally regulated lender at renewal is exempt from the higher stress-test qualifying rate. To count as a straight switch:
- You're switching at renewal — not breaking your mortgage mid-term.
- Your remaining amortization doesn't increase.
- Your loan amount doesn't increase, aside from up to $3,000 to cover transaction costs.
- You're not pulling out additional equity.
Meeting these conditions doesn't mean the new lender skips underwriting entirely — they'll still assess your income and debt ratios under normal lending standards, just qualifying you at your actual contract or market rate instead of the higher stress-test rate. If you want to increase your loan amount, extend your amortization, or refinance mid-term, the regular stress test still applies.
Porting a Mortgage When You Move
"Porting" means taking your existing mortgage's rate, term, and conditions with you to a new property, instead of breaking your current mortgage contract and starting over. A few things worth knowing before you count on it:
- It's a lender feature, not a legal right. Not every mortgage product is portable — check with your lender before assuming you can.
- You generally stay with the same lender and have to requalify for the new mortgage under current underwriting rules, including the standard stress test.
- "Blend and extend" is the usual mechanism when the new property needs a bigger mortgage — the lender blends your ported rate with a current-market rate on the additional funds, producing one new blended rate.
- There's usually a timing window between selling your old home and closing on the new one to still qualify for porting — commonly cited as roughly 30 to 120 days, though this is set by your lender's own policy, not a regulated figure, so confirm the actual window with your lender.
How Prepayment Penalties Are Calculated
Breaking a mortgage before its term ends (outside of a straight renewal switch) usually triggers a penalty, and how it's calculated depends on your mortgage type:
| Mortgage type | Penalty |
|---|---|
| Variable-rate | 3 months' interest |
| Fixed-rate | The greater of 3 months' interest, or the Interest Rate Differential (IRD) |
3 months' interest is straightforward: your outstanding balance times your monthly interest rate, times 3. IRD is more involved — broadly, it's the gap between your current contract rate and a comparable current rate, applied to your balance over your remaining term. There's no single standardized IRD formula used across all lenders, so the same mortgage broken at two different banks can produce genuinely different penalty quotes. Your lender is required to disclose your penalty on your annual mortgage statement and provide a specific quote on request — ask for the number directly rather than trying to estimate it yourself.
Common Questions
How much notice does my lender have to give me before my mortgage renews?
By federal regulation, a bank or federally regulated lender must send you a renewal disclosure statement at least 21 days before your maturity date. Between the day you receive that statement and the day your mortgage actually renews, the lender can't make any change that increases your cost of borrowing. That 21-day window is a legal floor, though — most brokers recommend starting to compare rates around 120 days before renewal, well ahead of when your existing lender's letter arrives.
Can I switch lenders at renewal without requalifying under the stress test?
In many cases, yes. Since November 2024, a straight switch to a different federally regulated lender at renewal — no increase in your loan amount or remaining amortization — is exempt from the higher stress-test qualifying rate; the new lender still underwrites the loan, just qualified at your actual contract rate instead. This exemption is specific to a straight renewal switch, though; if you're also increasing your loan amount, extending your amortization, or refinancing mid-term, the regular stress test still applies.
What does it mean to "port" a mortgage?
Porting means taking your existing mortgage's rate and terms with you when you sell one home and buy another, instead of breaking your mortgage and starting fresh. It's a feature some lenders offer, not a legal right — you generally need to stay with the same lender and requalify under current rules. If your new mortgage needs to be larger, the lender typically blends your old rate with a current-market rate on the extra funds. There's usually a window between selling and buying (commonly cited as roughly 30 to 120 days, though this varies by lender) to still qualify for porting.
How is a mortgage prepayment penalty calculated?
It depends on your mortgage type. A variable-rate mortgage typically charges 3 months' interest to break early. A fixed-rate mortgage charges whichever is greater: 3 months' interest, or the Interest Rate Differential (IRD) — roughly, the gap between your contract rate and a current comparable rate, applied to your balance over your remaining term. There's no single standardized IRD formula across lenders, so the same mortgage can produce different penalty quotes at different banks. Your lender is required to give you a specific penalty quote on request.
Is it actually worth shopping around at renewal instead of just accepting my lender's offer?
The numbers suggest most people already do some comparing, and it's worth doing. Recent federal research found 48% of mortgage holders personally compared lenders at renewal and another 36% had someone (like a broker) shop on their behalf — only 20% didn't compare at all. Notably, 13% of mortgage holders didn't realize negotiating their rate or terms was even an option. Since your existing lender's renewal offer isn't necessarily their best offer, a quick comparison costs little and can meaningfully change your rate.
Coming Up to Renewal?
Whether you're weighing a straight switch, thinking about porting to a new home, or just want to know what your options actually are before your lender's letter arrives, a Turner Realty agent can point you toward a mortgage professional to run the real numbers.
This guide provides general information only and is not financial advice. Mortgage terms, lender policies, and regulatory rules can change. Confirm current details with your lender or a licensed mortgage professional before making a decision.