How do lenders assess my financial situation during portability?
Lenders check your income, credit history, and debt ratios to make sure you can comfortably handle the mortgage.
They also evaluate the new property's value to determine the (/glossary/loan-to-value) (LTV) ratio. Lenders must follow OSFI's guidelines on responsible mortgage lending from Guideline B-20.
Key Points
Lenders check your credit, but your credit score isn't the only thing they consider.
Your GDS and TDS ratios are important to show what you can comfortably afford for your mortgage.
The lender will need to confirm the value of the property, and may require an inspection or appraisal.
Keep all your documents organized, including proof of income and your purchase agreement.
Lenders carefully manage risk when approving your mortgage portability.
Technical Research Verification
Our systems synchronized 3 data points and regulatory frameworks to verify this technical brief.
Related Questions
How does the stress test differ for fixed vs. variable in 2026?
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%.
Why are 3-year fixed rates dominating the 2026 market?
Borrowers are hesitant to lock in for 5 years at current levels, but find 1-2 year rates too expensive.
Fixed vs. Variable Comparison Table
Fixed locks a 5-year rate with IRD penalty risk; variable floats with prime and typically caps break fees at 3 months interest.
What is the 'IRD' penalty risk for 5-year fixed borrowers?
The Interest Rate Differential (IRD) can cost tens of thousands if you break a fixed mortgage when market rates have dropped.