The idea of ”portable mortgages,” loans that homeowners can move from one property to another, is gaining national attention as policymakers consider new tools to alleviate the country’s housing affordability and mobility challenges.
The Federal Housing Finance Agency (FHFA), led by Secretary Bill Pulte, announced in late 2025 that it is “actively evaluating” the feasibility and risks of mortgage portability. The proposal was one of three made available to the public at the end of 2025, along with a 50-year mortgage and a crypto-backed mortgage.
While portable mortgages are common in Canada, they are virtually non-existent in the United States. In the United States, mortgages are tied to individual properties and packaged into mortgage-backed securities, a structure that makes portability difficult today.
If adopted, homeowners would be able to move into a new home and keep their existing mortgage rate, balance, and term instead of taking out a new loan, perhaps at a higher interest rate. Supporters say the conversion could free up housing stock and make it easier for people to move. But experts warn that portability could widen the gap between low-interest homeowners and first-time buyers and disrupt the way the U.S. mortgage system works.
What is a portable mortgage?
A portable mortgage allows a borrower to transfer their current mortgage (including interest rate, balance, and term) from their existing home to a new home.
Example: If a homeowner with a 3% fixed rate mortgage wants to buy another home, they can “port” that mortgage instead of refinancing at today’s higher interest rates.
The main benefits of mortgage portability are:
Maintain your current interest rate May be able to avoid prepayment penalties if applicable Maintain the same terms and amortization Work with the same lender
Important note: While portability is widely available in Canada, U.S. mortgages are typically not portable. Although there is no formal program or rollout schedule, federal regulators are currently studying the idea in response to record low levels of mobility and housing supply constraints.
Why portable mortgages are back in the spotlight
The renewed interest in portability comes as the U.S. housing market faces:
High interest rates, keeping buyers on the sidelines Historically low liquidity as homeowners avoid forgoing pandemic-era rates Chronic inventory shortages, especially in major cities
Supporters argue that allowing homeowners to keep interest rates low could help alleviate the “lock-in effect,” a term used to describe millions of households feeling unable to move in the face of significantly higher mortgage costs.
Main arguments in favor of portability:
Freeing up inventory: Many homeowners remain “locked in” with cheap pandemic-era mortgages (often less than 4%). Allowing these loans to be ported could free up housing supply at a time when inventory is desperately needed. Lower transaction costs: Sellers avoid prepayment penalties and buyers with existing loans avoid high interest rates. New mobility: People can relocate for work or lifestyle reasons without fear of losing favorable mortgage terms.
That said, various stakeholders have expressed serious concerns.
The structure of US mortgage-backed securities relies on each mortgage being tied to a specific property. Achieving portability requires reinventing the system, which critics argue is “incompatible” with existing securitization models. Portability could benefit current homeowners with low interest rates and widen the gap between “high interest rate” sellers and first-time buyers. Even if portability were adopted, there is no guarantee that it would improve overall affordability. Real estate prices may rise and demand may surge as buyers with cheap financing bid aggressively.
Chen Zhao, head of economic research at Redfin, noted that portability faces severe legal and financial barriers.
“Portable mortgages face significant legal hurdles because making a mortgage portable changes the underlying value of the mortgage for MBS investors. Even if the hurdles are overcome, this change would benefit existing homeowners and not improve affordability for first-time homebuyers because they do not have existing mortgages with ultra-low interest rates.”
Zhao added that portability would do little to improve affordability for the market segment most affected by rising housing costs, as first-time buyers already lack low-interest mortgages.
What FHFA evaluates
Federal officials are considering portability in response to a historically depressed housing market. Their reviews include:
Whether portability can free up inventory by encouraging more homeowners to sell How portability interacts with mortgage-backed securities and investor expectations Whether lenders can implement portability without raising interest rates on new loans The potential impact on first-time buyers who do not benefit from portability Whether portability can reduce local economic friction by encouraging relocation
Although no program has been announced, FHFA has indicated continued research and early consultation with industry partners.
How portability (if adopted) could change the US housing market
If portable mortgages were to become available in the United States, the implications could be significant.
More existing homes on the market: Many homeowners who have been reluctant to sell due to low mortgage rates may feel comfortable moving. Home prices may rise: Porters bring cheaper loans (lower interest rates) to the market, making them more competitive than buyers taking out new high-interest loans, potentially causing prices to rise. Increased competition between porters and new buyers: Renters and first-time home buyers will find it harder to compete, potentially reducing affordability for new entrants. Mortgage market under stress: If many mortgages are not paid off, the structure of mortgage-backed securities could be disrupted, leading to higher interest rates and stricter credit standards.
In other words, while portable mortgages may alleviate the “lock-in” problem and encourage more housing transfers, they do not automatically solve affordability or undersupply issues and may themselves create new distortions.
Who benefits (or doesn’t benefit) when portability becomes available within the United States?
Winner candidate:
Homeowners with pandemic-era mortgage rates between 2% and 4% Sellers looking to move but want to avoid refinancing penalties Buyers upgrading to a more expensive home
People who could lose/people to watch out for:
First-time buyers competing with low-interest borrowers Renters without access to low-interest financing Buyers in the new construction market where builders can increase prices if demand increases Borrowers quickly become reliant on the equity in the building
What happens next and what homeowners should look out for?
FHFA and U.S. regulators are studying how such a program could be constructed, but portability is currently only a suggestion, not a guarantee. Even if approved, it would likely take years to implement and would require major changes to the way mortgage loans are securitized, underwritten, and sold.
In the meantime, homeowners should:
Monitor policy announcements from FHFA and Congress Consult with lenders and mortgage brokers about portability eligibility and implications Compare portability, refinancing, and new mortgages (including long-term costs and short-term benefits)
Policymakers continue to study mortgage portability, and the coming months could determine whether the U.S. adopts a system that could reshape the way Americans move, buy and finance homes.
