Updated: Aug 4, 2021
Many home loans have the option of taking your loan with you when you move. This is known as loan portability. Loan portability allows you to transfer your existing loan to your new property without having to go through the hassle of refinancing and the inconvenience of closing one loan and having to apply for a new one. It also means you can keep the features and facilities you already have set up with your loan, such as online banking or a linked offset account.
How does loan portability work?
When you port your home loan to your new property, you will be transferring the current balance and interest rate as well as any attached features such as a linked offset account to your new home. Instead of the loan being secured against your old home, it will instead be secured against your new home.
What are the benefits of porting your home loan?
The process is generally much quicker than applying for a new loan and you can avoid potential upfront costs involved with applying for a new loan. When you port your home loan you could also switch your loan from fixed to variable (or variable to fixed) and may also be able to top up your loan with extra funds (if needed) when you move your loan to a new property.
Speak to your mortgage broker today about portability. Kind Regards, The Newstead Group Team