-
14/330 Collins Street
Melbourne VIC 3000 -
Monday to Friday
8:30 AM – 6:00 PM -
Call Us Now
1300 188 808
Are you considering a move but dread refinancing your home loan? What if you could transfer your existing mortgage to a new property without the hassle? Enter the portability loan – a game-changing feature that could save you time, money, and stress. A key aspect that makes transferring your existing mortgage to a new property hassle-free is the loan portability feature. In this blog post, we’ll dive into the world of portability loans, exploring their benefits, eligibility, and how to navigate the process. So, let’s unlock the potential of portability loans and take control of your next property move.
Imagine being able to keep your existing home loan while buying a new property. That’s the beauty of loan portability. It’s a feature that allows borrowers to transfer their current loan to a new property without closing it and opening a new one. One of the key benefits of loan portability is the ability to maintain your existing loan structure, including the same interest rates, loan terms, and even the option to add borrowers or switch loan packages, ensuring a seamless transition and potentially saving on costs.
A portability loan is a feature that enables you to retain your current loan when purchasing a new property by switching the security from your current property to a new one. Instead of refinancing your home loan, you substitute the property used as security for the loan.
Transferring the existing mortgage to a new property includes transferring the current balance, interest rate, offset account and other associated features. This process is termed as a mortgage transfer. This flexibility can make a big difference, especially for those looking to move quickly or avoid refinancing.
While loan portability can be a fantastic option for many borrowers, ensuring you’re eligible before diving in is essential. Most standard home loans, including investment property and owner-occupier loans, can be taken with you if they meet the lender’s criteria.
However, portability may not be an option for certain types of loans. Consider portability loans if you owe less than 80% of your mortgage. In any case, it’s crucial to consult with your lender or mortgage broker to determine if loan portability is the right choice for you.
Portability loans can offer numerous benefits, such as avoiding mortgage discharge fees, maintaining a fixed interest rate, and securing business loans with property to bypass break costs and tax implications. Additionally, portability loans can help borrowers avoid upfront costs associated with applying for a new loan, making the transition smoother and more cost-effective.
Who might benefit from portability loans? Those with fixed interest rates and business loans secured by residential property could find this feature particularly helpful.
One of the primary advantages of portability loans is the financial savings they can offer. Portability loans can save you money with no changes to rates or repayments, no break costs for fixed rates, and no new loan fees.
Additionally, maintaining your existing limit and balance when switching to different security can help you avoid break costs on a fixed-rate home loan. The simultaneous settlement, an option allowing for an easy transfer of home loan security when buying and selling simultaneously, can further enhance the financial benefits of portability loans.
Apart from the financial benefits, portability loans offer a more straightforward process than applying for a new loan. Transferring your existing loan to another property without refinancing allows you to keep the same loan product, interest rate, and features, saving time and effort.
The application process for portability loans typically involves providing property details and settlement dates for your current and new property. By opting for a portability loan, you can simplify your property move and focus on what truly matters – settling into your new home.
Applying for a portability loan can feel overwhelming, but we’re here to help. To get started, complete a Property and Security Request form with information about your current and new properties, including settlement dates. Once you submit the form, your lender will assist you with the following steps.
The application process for a portability loan involves a few essential steps. First, provide your lender with your current and new property details, including the settlement dates.
Next, submit the necessary documentation, such as a Contract of Sale for your current and new property.
When settling your portability loan, you have two primary options: simultaneous settlement and deferred settlement. Simultaneous settlement is ideal for those buying and selling at the same time, as it allows for an easy substitution of home loan security.
The deferred settlement, however, is suitable for those selling a property without buying a new one or if you’re waiting on a settlement.
Before committing to a portable loan, assessing your individual needs and circumstances is important. To make an informed decision that best suits your unique situation, evaluate your current home loan and consider alternative options. Take into account the advantages and disadvantages of portability loans, which include the potential to save money on interest rates, the ability to access additional funds, and the potential to reduce the loan amount. Considering the ‘loan term’ is crucial when assessing your portability loan needs, especially given the frequency with which people move homes.
To determine if a portability loan is right, evaluate your current home loan. Check your eligibility for portability and any restrictions that may apply.
A portability loan is generally recommended if you owe less than 80% of your mortgage.
While portability loans offer numerous benefits, it’s essential to consider alternative options, such as refinancing your existing loan or taking out a bridging loan. The simultaneous settlement, a process where the existing loan is paid off, and the new loan is taken out all at once, may also be a suitable option for some borrowers.
Selecting the right lender for your portability loan is a critical decision. By comparing lenders and working with a mortgage broker, you can ensure that you choose a lender that best meets your needs and offers the most favourable terms.
It is important to consider the interest rate, repayment terms, and other fees associated with the loan. It would help to look at the lender’s reputation and customer service.
For a portability loan, comparing lenders based on their fees, features, and customer service is important. You should also consider the loan’s interest rates, loan amounts, monthly repayments, and any other expenses related to setting up a new loan.
Enlisting the help of a broker can significantly simplify the process of choosing a lender for your portability loan. Mortgage brokers have extensive knowledge and experience in the mortgage industry, which enables them to help you find the best deal and guide you through the process.
Portability loans offer a convenient and flexible solution for borrowers who transfer their existing home loan to a new property without refinancing. By understanding the concept, eligibility, advantages, and process of portability loans, you can make an informed decision that best suits your unique needs and circumstances. So don’t let the prospect of refinancing hold you back from your dream property move – explore the world of portability loans and unlock your property potential.
A portability loan can be a useful home loan feature if you plan to move to a new property. With this option, you can transfer your current loan to your new property without the need to refinance. This can save you both time and money while still allowing you to keep the same terms and conditions of your original loan. Portability loans are an excellent choice for those who want to avoid the complications of refinancing when moving houses.
Porting a mortgage means transferring your existing mortgage and loan terms from your current house to a new one. It allows you to keep your original mortgage deal, saving on the costs of finding a new lender and securing a new loan with better rates and features.
Porting a mortgage can be a great way to save money and time when moving house. It allows you to keep your existing mortgage deal, avoiding the hassle of finding a new lender and securing it.
Yes, it is possible to port a mortgage when you move house. Mortgage porting involves transferring an existing mortgage to a new property, allowing you to keep the same terms, such as interest rate and loan duration.
You may also be able to add extra debt for a higher purchase cost, but this could come with different interest rates.
Depending on the lender’s criteria, porting a mortgage can take 30 days to three months. You can smoothly transition your mortgage to a new property by following the necessary steps and meeting any requirements.
Portability with a loan means you can take your loan with you if you change properties without having to refinance.
This makes it easier and less costly for borrowers to change homes without starting the whole loan process all over again.
Credit Representative 511410 is authorised under Australian Credit Licence 389328. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.
