Home Loan Transfer? Here's How to Save Big (2026)

Are you feeling overwhelmed by your current home loan, or wondering if there's a way to lighten your financial load? You're not alone. Many Australians are in search of better home loan terms, and the good news is, transferring your home loan to another bank—commonly known as refinancing—could be a viable solution. With the right guidance, you can navigate this process to find a more favourable interest rate or better terms tailored to your needs.

Understanding Home Loan Transfer

Transferring your home loan to another bank, or refinancing, involves moving your existing mortgage from one lender to another. This is typically done to secure a lower interest rate, access better loan features, or consolidate debts. In the Australian financial landscape, where interest rates can fluctuate significantly, refinancing can be a strategic move to secure financial stability.

Refinancing can also help you tap into the equity of your home to fund renovations, investments, or other large expenses. However, it's important to weigh the benefits against any potential costs involved, such as exit fees from your current lender or application fees with the new lender.

Current Market Rates and Requirements

As of 2026, the Australian home loan market has seen interest rates ranging from 6.49% to 12%, depending on the lender and the specific conditions of the loan. With over 83 lenders in our panel at Esteb and Co, there's a vast array of options to explore.

To qualify for transferring your home loan, lenders typically require:

• A good credit score, usually above 650
• Proof of stable income
• Equity in your home (often a minimum of 20%)
• Detailed documentation of your current financial situation

Steps to Transfer Your Home Loan

Transferring your home loan involves several key steps:

1. Assess Your Current Loan: Understand your current loan terms, including interest rates and any exit fees.
2. Research New Lenders: Compare options using resources like Esteb and Co's extensive lender panel to find potential savings.
3. Calculate Potential Savings: Use online calculators to estimate savings from a lower interest rate or better terms.
4. Prepare Your Application: Gather necessary documents, such as proof of income, recent pay slips, and detailed financial statements.
5. Submit Your Application: Work with your chosen lender to submit and finalise your refinancing application.
6. Complete Settlement: Once approved, your new lender will settle the loan, paying off your old loan and starting the new one.

Tips and Considerations

Before making the switch, consider these expert tips:

• Check for Hidden Fees: Look beyond interest rates and consider all associated fees, including exit and application fees.
• Consider Future Plans: If you plan to sell your home soon, the costs of refinancing might outweigh the benefits.
• Utilise Professional Guidance: Mortgage brokers like Esteb and Co can provide insights and access to a wide range of lenders, making the process smoother.
• Review Loan Features: Ensure the new loan offers features that align with your financial goals, such as offset accounts or flexible payment options.

Frequently Asked Questions

1. Can I transfer my home loan if I'm self-employed?
Yes, but you'll need to provide additional documentation, such as tax returns and business financials, to prove your income stability.

2. How long does the refinancing process take?
Typically, refinancing can take anywhere from 4 to 8 weeks, depending on the lender and the complexity of your application.

3. Will transferring my home loan affect my credit score?
Refinancing itself doesn't directly impact your credit score, but multiple loan inquiries can. It's best to limit applications to serious contenders.

4. Can I refinance if my property's value has decreased?
It may be more challenging, but not impossible. Lenders will assess your current equity and loan-to-value ratio.

5. Is there a best time to refinance?
While refinancing can be done anytime, it's often best during times of lower interest rates or when your financial situation has improved.

Transferring your home loan to another bank can be a strategic financial move when done with careful planning and consideration. By leveraging the expertise and resources of mortgage brokers like Esteb and Co, you can navigate the complexities of refinancing to find a loan that suits your needs and financial goals.