Portable Mortgages: What They Are, Why Buyers Are Talking About Them, and Whether They Could Ever Come to the U.S.

Portable Mortgages: What They Are, Why Buyers Are Talking About Them, and Whether They Could Ever Come to the U.S.

By Alicia Sanchez — Realtor®, The TJK Team

If you’ve talked with homeowners recently, you’ve probably heard a familiar phrase: “I’d move — but I don’t want to give up my interest rate.”

In today’s higher-rate environment, that hesitation is shaping buyer behavior across the U.S. That’s why a concept common in other countries — portable mortgages — is now being discussed here, even though it does not currently exist in the American housing system.

So what is a portable mortgage, why are buyers paying attention now, and is there any real chance it could come to the U.S.? Let’s break it down.

What Is a Portable Mortgage?
A portable mortgage allows a homeowner to transfer their existing mortgage — including the interest rate and remaining term — from one home to another when they move.

Instead of paying off their current loan and taking out a new mortgage at today’s rates, the borrower ports their mortgage to a new property, assuming they still qualify.

• Portable mortgages are not currently available in the United States.
  
  
• They are widely used in other countries, especially Canada and the United Kingdom.
  
  

Why Buyers Care So Much Right Now
Interest rates are the driving force behind this conversation. Many homeowners locked in historically low rates between 2020 and 2022 and now face significantly higher rates.

• Homeowners feel rate-locked into their current homes
• Fewer listings and fewer move-up buyers
• More people staying put longer than planned

How Portable Mortgages Work in Other Countries

Canada
One of the best-known examples of mortgage portability. Most mortgages are shorter-term fixed loans, often five years, and borrowers frequently move before the term ends.

• Borrowers can port their mortgage to a new home within a set time window.
  
  
• If the new home costs more, buyers may add a second loan at a blended rate.

United Kingdom
In the UK, mortgages are closely tied to the borrower rather than the property. Borrowers must requalify, and the new home must meet lender criteria.

If approved, the existing rate and terms transfer to the new property, supporting homeowner mobility.

The Benefits Seen in Countries With Portable Mortgages

• Protection from rate shock when moving
  
  
• Greater housing mobility during life changes
  
  
• Fewer penalties and break fees
  
  
• Healthier transaction flow in housing markets
  
  
• Easier relocation for work or family needs

Are Portable Mortgages Being Considered in the U.S.?
While portable mortgages are not available in the U.S., they are now being discussed at federal policy levels. The Federal Housing Finance Agency (FHFA) has acknowledged it is evaluating ideas to address housing affordability and the rate lock-in effect.

This does not mean portable mortgages are imminent, but it does signal that the concept has entered serious policy conversations.

Why It’s Hard to Implement in the U.S.
The U.S. mortgage system relies heavily on 30-year fixed-rate loans, mortgage-backed securities, and loans being sold on secondary markets.

Once a mortgage is securitized, changing the collateral becomes extremely complex, which makes true portability difficult under the current system.

Could It Ever Happen Here?
Widespread portability would require significant structural change. More realistic near-term outcomes include expanded assumable loan awareness, hybrid financing options, or new products aimed at reducing rate lock effects.

What Buyers and Homeowners Should Know Right Now

• Portable mortgages are not currently an option in the U.S.
  
  
• They help explain tight inventory and reduced housing mobility
  
  
• Understanding your loan terms and alternatives is critical when planning a move

Final Thought

Portable mortgages may not exist in the U.S. today, but the fact that they are being discussed highlights a growing demand for flexibility in housing finance. Looking at how other countries handle mobility offers perspective on where the conversation may go next.

Sources

• Federal Housing Finance Agency (FHFA) — housing policy discussions
• Bank of Canada — Mortgage Market Structure
• UK Financial Conduct Authority — Mortgage Portability Guidance
• Government of Canada — Housing & Mortgage Policy
• Investopedia — Portable Mortgages Explained
• OECD — International Housing Finance Comparisons