In France, when you sell your home to buy another one, a question often comes up: is it possible to keep your current mortgage, particularly its interest rate, rather than taking out a new one? This is precisely what mortgage loan portability theoretically makes possible. However, this mechanism remains uncommon in France, and its operation should be fully understood before relying on it as part of a sale-and-purchase project.
In Summary
- Portability is a contractual clause, provided for when the mortgage is signed, which allows the terms of a mortgage loan (particularly its interest rate) to be transferred to a new property.
- This clause remains rare: few French banks actually offer it, and no law requires them to do so in 2026.
- Even when the clause exists, the bank always retains the freedom to accept or refuse the transfer at the time of the sale.
- Since the outstanding principal is often lower than the price of the new property, an additional loan at a different interest rate is almost always necessary.
What Is Mortgage Loan Portability?
A Simple Definition
Mortgage loan portability refers to the possibility of transferring the terms of an existing loan (remaining term, interest rate, borrower insurance) to the purchase of a new property as part of a sale-and-purchase transaction. In practical terms, instead of paying off the old mortgage and taking out an entirely new one, the borrower keeps all or part of the original financing, including the interest rate obtained initially, which can prove particularly advantageous if market rates have since increased.
How Does It Work in Practice?
In practice, the transaction takes place in two stages that must follow one another within a limited period: the sale of the current property, followed by the acquisition of the new home. The outstanding principal on the initial mortgage is transferred to the new property, provided that the latter has a comparable use (main residence most of the time) and that its price is at least equal to the amount transferred. Before undertaking this process, it is useful to know the precise value of the current property: a free property valuation makes it possible to anticipate the amount that will be released from the sale and therefore the portion of financing that will need to be supplemented.
A Clause That Is Still Rare in Practice
It is important to know this before starting a property search: portability is by no means automatic. No provision of the Consumer Code requires a French bank to offer this clause, and in practice, few institutions actually include it in their standard mortgage offers. Some banks display it in their general terms and conditions without ever really implementing it, while others simply do not mention it. A bill aimed at making this clause standard was introduced, but its proceedings were suspended and nothing yet requires banking institutions to offer it. Therefore, one should not assume that a mortgage is portable: this must be verified on a case-by-case basis.
Conditions for Benefiting from Portability
A Clause Provided for from the Start of the Contract
The first prerequisite, which is often overlooked: the transferability clause must have been negotiated and included in the mortgage offer when the initial loan was taken out. It is impossible to add it later, once the contract has been signed. If this clause does not appear in the original contractual documents, portability is simply excluded, regardless of the bank's willingness.
A Maximum Period Between the Sale and the New Purchase
Portability requires a rapid sequence between the resale of the old property and the acquisition of the new one. Contracts generally provide for a maximum period, often around six months, between the two transactions. Once this period has elapsed, the benefit of the clause may be lost, which requires fairly tight organization of the property project, particularly if the purchase depends on finding a property that meets one's criteria.
The Bank's Approval Is Never Guaranteed in Advance
Even when the clause exists and the deadline is respected, the bank remains free to accept or refuse the transfer. On this occasion, it reassesses the borrower's situation (income, debt ratio, any payment incidents) as well as the characteristics of the new property. Portability is therefore never an automatic right: it is a contractual possibility subject to a new assessment of the application.
The Advantages of Portability
Keeping an Interest Rate Obtained Several Years Ago
The main advantage of portability is obvious when interest rates have increased since the initial loan was taken out: a borrower who obtained a low interest rate a few years earlier has every reason to keep it rather than borrow again under current conditions, which may be less favorable.
Avoiding Certain Costs Associated with a New Mortgage
Transferring an existing mortgage can also make it possible to avoid, or limit, certain costs usually associated with setting up a new loan, such as part of the application fees. However, this advantage should be put into perspective in light of the limitations described below, which often reduce the overall financial benefit of the transaction.
The Limitations and Pitfalls to Know
An Initial Amount That Is Often Insufficient
In the vast majority of cases, the outstanding principal on the old mortgage is lower than the price of the new property, particularly if the project involves moving upmarket. An additional loan must then be taken out to finance the difference, with this second loan being negotiated at the interest rates prevailing at the time, generally different from those of the initial mortgage. The overall interest rate of the transaction thus becomes a combination of the carried-over old rate and the new rate on the additional financing, which mechanically limits the expected gain.
Guarantee Costs to Be Reconstituted
Another often underestimated point: the security associated with the initial mortgage (mortgage, guarantee or lender's lien) must be reconstituted on the new property. This generates new guarantee costs, which are added to the notary fees associated with the purchase and must be included in calculating the actual cost of the transaction before choosing it over a new conventional mortgage.
Portability or Alternatives: What to Choose?
Paying Off the Mortgage and Taking Out a New One
This is the most common scenario in France, particularly because portability remains rarely available. The borrower pays off the existing mortgage at the time of the sale (with, where applicable, early repayment penalties) and takes out a new mortgage under market conditions to finance the new purchase. This solution is simpler to implement, but means losing the benefit of a more favorable older interest rate.
Renegotiating or Refinancing the Mortgage
Without any direct connection to a change of property, renegotiation with one's bank or refinancing by another institution makes it possible to adjust the terms of an existing mortgage, for example to lower an interest rate that has become uncompetitive. These solutions do not replace portability for a sale-and-purchase project, but they may be relevant outside this context, or as a complement to broader consideration of financing.
Practical Advice for Checking Your Portability Clause
Before considering a sale-and-purchase transaction based on this mechanism, it is essential to carefully review the mortgage offer and loan agreement, looking for a clause explicitly mentioning the “transferability” or “portability” of the mortgage. If in doubt, a call to the bank's customer service department or advisor can clear up any ambiguity. It is also recommended to request a detailed simulation incorporating any potential additional loan and guarantee costs, in order to objectively compare this option with taking out a new mortgage. To refine the project, relying on a local Capifrance property advisor helps coordinate the sale and purchase schedule, while consulting the our property listings makes it possible to identify now properties compatible with the budget and deadline imposed by the portability clause.
Conclusion
Mortgage loan portability remains an attractive option on paper, but it remains marginal in French banking practice: it requires a clause negotiated from the outset, a tight schedule between the sale and purchase, and above all the renewed approval of the bank. In most sale-and-purchase projects, an additional loan or a new conventional mortgage proves necessary, which must be anticipated in the overall budget. Getting support to assess the property, structure the schedule and compare financing scenarios remains the best way to approach this transaction with peace of mind.
FAQ
Are All Mortgages Portable?
No. Portability depends solely on the existence of a transferability clause included in the mortgage agreement when it is signed. If this clause was not provided for originally, it is impossible to obtain it afterwards, regardless of the bank.
Can the Bank Refuse Portability Even If the Clause Exists?
Yes. The portability clause offers a possibility, never an automatic right. The bank reassesses the borrower's application and the characteristics of the new property at the time of the transfer, and may refuse the transaction if it considers it too risky.
What Happens If the New Property Costs More Than the Outstanding Mortgage on the Old Property?
This is the most common case. An additional loan must then be taken out to finance the difference, with this second loan being negotiated at the rates prevailing at the time of the transaction, distinct from those of the transferred initial mortgage.
Does Portability Save on Notary Fees?
No, it has no impact on the notary fees associated with purchasing the new property. It can, however, make it possible to avoid certain costs associated with setting up a new mortgage, while itself generating guarantee costs that must be reconstituted on the new home.
How Can I Tell Whether My Mortgage Agreement Contains a Portability Clause?
You need to review your original mortgage offer and loan agreement for the terms “portability” or “transferability”, and, if in doubt, contact your bank directly for written confirmation.
Is There a Deadline to Respect Between the Sale and the New Purchase?
Yes, contracts providing for a portability clause generally set a maximum period, often close to six months, between the sale of the old property and the acquisition of the new one. This period varies depending on the institution and must be checked in the contractual terms.
Author
Frédéric Rémy – Director of Sales Performance
A real estate professional with several years of experience within the Capifrance network, I would like to share essential advice with you to help you successfully complete your property project with our advisors.
