Home Loan Transfer & Portability

Transferring your home to someone else can be complex, so it’s important to have the right people and information available.

Changing the ownership of your home can be done for a variety of reasons. A popular reason is to transfer the home loan into someone else’s name.

There are many reasons why people consider transferring their home loan. These include separation or divorce, illness or death, family reasons or a change in financial circumstance.

A home loan cannot be transferred to someone else without your lender’s approval. The lender needs to comply with Responsible Lending legislation and ensure that the loan is not unsuitable for the new person. Usually, a lender will require a transfer of the property and a new loan to be taken out at the same time as your current loan is paid out.

When changing the ownership of your property, it may incur significant costs, including capital gains tax, lenders mortgage insurance, stamp duty costs (based on the value of the land and property), discharge and registration fees and legal fees.

Transferring A Mortgage

When you are buying a new home, it is possible to take your existing home loan with you. This is called loan portability, and it means transferring your existing loan to another property without refinancing.

If your new property satisfies your lender’s requirements with regard to your old home loan, it may be possible for you to obtain a new loan on the property.

Loan portability may save you money by eliminating establishment and exit fees, but some lenders may charge a loan portability fee.

If you transfer your mortgage, you cannot change the loan structure, including the number of borrowers and the interest rate.

Modifying details of your mortgage can be a complicated process. Speak to a My LMI Group broker today to get back on track.