On The Market

This Could "Break" the Housing System as We Know It

Nov 25, 2025
The discussion dives into portable mortgages, an intriguing idea that could let homeowners carry low rates to new homes. Examining Canada’s model, the potential disruption of the U.S. system sparks debate. While portability could benefit existing homeowners, it may also lead to higher fees and unpredictable rates. Experts weigh the pros and cons, questioning if lenders would embrace such a change. Will government incentives make this dream a reality, or will it just complicate the current mortgage landscape?
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INSIGHT

What Portable Mortgages Actually Mean

  • Portable mortgages let borrowers carry low rates to a new purchase but require blending when borrowing more.
  • They sound appealing but change loan dynamics and don't mirror U.S. 30-year fixed mortgages.
INSIGHT

Canada's Model Differs Widely

  • Canadian portable mortgages are usually five-year fixed loans with hefty prepayment penalties.
  • That structure protects lenders and makes portability far less valuable than U.S. 30-year fixes.
INSIGHT

Securitization Undergirds U.S. Rates

  • U.S. mortgages are securitized and sold as MBS to investors like pension funds and hedge funds.
  • This securitization lowers rates by standardizing loans and creating investor predictability.
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