portable mortgage loan
A mortgage loan that can be 'moved' to a new property without a discharge penalty.
When you 'move' a portable mortgage loan to a new property, you aren't really moving it at all.
A mortgage is an interest registered against a property, not against the owner, so it is legally impossible to take the mortgage with you when you sell, because it stays behind with the property.
What really happens when you move a portable mortgage loan is this: the lender allows you to discharge the existing mortgage loan on the property when you sell, then gives you a new mortgage loan with the same terms for your new property, all without charging a discharge penalty.
The end result is as if you had 'moved' your mortgage loan to the new property, but legally it is an entirely new mortgage loan.
When 'moving' a mortgage loan to a new property, some borrowers may request a blended mortgage loan if the cost of the new property requires them to borrow additional money.