Home Loan Transfer? Here's How to Gain Control (2026)

Considering transferring your home loan but uncertain of the process or benefits? Many Australians face the same dilemma when seeking more favourable terms or needing flexibility due to personal changes. Understanding your options can save you significant money and stress.

Understanding Home Loan Transfers

A home loan transfer, often referred to as refinancing, involves moving your existing mortgage from one lender to another. This can potentially lower your interest rate, reduce monthly repayments, or allow you to access additional features more suited to your financial needs. It's an option many homeowners explore to take advantage of better deals or to consolidate debts.

Rates, Requirements, and Options

In 2026, the Australian mortgage market is highly competitive, with interest rates ranging from 6.49% to 12%, depending on the lender and your credit profile. When considering a home loan transfer, it's crucial to understand the requirements and options available.

Lender	Interest Rate Range	Key Features
Lender A	6.49% - 7.5%	Offset Account, Extra Repayments
Lender B	6.75% - 8%	Redraw Facility, No Ongoing Fees
Lender C	7% - 9%	Flexible Repayment Options

Eligibility criteria typically include a good credit score, stable income, and sufficient equity in your property. It's also beneficial if you've maintained a consistent repayment record with your current lender.

Steps to Transfer Your Home Loan

Transferring your home loan can be straightforward if you follow these steps:

1. Assess Your Current Situation: Review your current loan terms, including interest rates, fees, and features. Identify what you want to achieve with a transfer.
2. Research and Compare Lenders: Look into different lenders and their offers. Esteb and Co's panel of 83+ lenders can provide a wide range of options to suit your needs.
3. Calculate Costs: Consider any exit fees from your current lender and setup costs with the new lender. Ensure the savings outweigh these costs.
4. Apply for Pre-Approval: Once you've chosen a lender, apply for pre-approval to understand your borrowing capacity under the new terms.
5. Formal Approval and Settlement: Upon pre-approval, submit the necessary documents for formal approval. Once approved, your new lender will manage the settlement process.

Tips and Considerations

• Consult a Mortgage Broker: A mortgage broker, like those at Esteb and Co, can offer expert advice and negotiate the best deals on your behalf.
• Check Your Credit Score: A healthy credit score improves your chances of securing a better rate. Obtain a free credit report to identify any issues before applying.
• Consider Future Needs: Choose a loan that accommodates potential life changes, such as starting a family or career shifts.
• Beware of Honeymoon Rates: Introductory rates can lead to higher payments after the initial period. Ensure you understand the full terms.

Frequently Asked Questions

1. Can I transfer my home loan to another person?
   Generally, transferring a home loan directly to another person isn't possible. The new borrower would need to qualify for their own loan.
2. What are the potential costs involved in transferring a home loan?
   Costs can include exit fees from your current lender, application fees with the new lender, and potential valuation fees.
3. How long does the transfer process take?
   The process typically takes 4-6 weeks, depending on both the current and new lenders' processing times.
4. Will transferring my home loan affect my credit score?
   Applying for a new loan can temporarily impact your credit score, but timely repayments will help improve it over time.
5. Is there a minimum amount of equity required to refinance?
   Most lenders require at least 20% equity in your property, though some may consider less with lender's mortgage insurance.
6. Can I transfer my home loan if I'm self-employed?
   Yes, but you may need to provide additional documentation, such as tax returns, to verify your income.
7. What if my current lender offers a better deal once I start the transfer process?
   It's worth negotiating with your current lender if they offer a competitive rate to retain your business.