Which mortgage feature permits a borrower to transfer their mortgage without incurring a penalty to a new property?

Portability is the feature that allows a borrower to transfer their mortgage from their current property to a new property without incurring a penalty. This can be particularly beneficial for homeowners who want to move without needing to pay off their existing mortgage first, which could involve significant costs.

When a mortgage is portable, the borrower can keep their existing mortgage terms, including the interest rate and other features, thus avoiding the hassle of refinancing. This feature can be advantageous in a rising interest rate environment, as it allows the borrower to maintain a potentially lower rate that they secured when they first obtained the mortgage.

In contrast, assumption involves allowing a new buyer to take over the existing mortgage terms, which does not apply if the original borrower is moving to a new property. Modification refers to changing the terms of the existing mortgage, and equity transfer usually involves moving equity from one property to another, but does not necessarily address the transferability of the mortgage itself.