Move Your Loan – Regain Control When Banks Decline

Are you considering moving your home loan to another bank, but unsure where to start? You’re not alone. Many Australians are re-evaluating their mortgage options in 2026, seeking better rates, more favourable terms, or improved customer service. With interest rates fluctuating between 6.49% and 12%, understanding how to navigate the home loan landscape can significantly impact your financial well-being.

Understanding Loan Portability

Loan portability, or refinancing, allows homeowners to transfer their existing mortgage to another lender. This can be driven by a desire to secure a more competitive interest rate, consolidate debts, or access additional loan features such as offset accounts or redraw facilities. It's essential to understand the basic concept of refinancing and how it might benefit your financial situation.

Current Interest Rates and Requirements

As of 2026, mortgage interest rates in Australia range from 6.49% to 12%, depending on the lender and the borrower's financial profile. Refinancing can help you lock in lower rates, potentially saving thousands over the life of your loan. However, lenders typically require you to meet certain criteria, including:

• A stable income and employment history
• A healthy credit score, ideally above 620
• A loan-to-value ratio (LVR) of less than 80%

Different lenders offer various products, and with Esteb and Co's access to over 83 lenders, you have a wide range of options to choose from.

Steps to Move Your Loan to Another Bank

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

1. Assess Your Current Loan: Review your current mortgage terms, interest rate, and any applicable exit fees.
2. Research New Lenders: Compare offers from various lenders. Consider using a broker like Esteb and Co to access a wide range of options.
3. Calculate Costs and Savings: Use a refinancing calculator to determine potential savings and costs associated with switching loans.
4. Submit Applications: Apply for the new loan with your chosen lender, providing necessary documentation such as proof of income and identification.
5. Approval and Settlement: Once approved, your new lender will handle the settlement with your old lender, finalizing the transfer.

Tips and Considerations

Here are some expert tips to consider when moving your loan:

• Understand Fees: Be aware of any exit fees from your current lender and application fees from the new lender.
• Check Loan Terms: Ensure the new loan offers features that align with your financial goals, such as flexible repayment options or an offset account.
• Consider Fixed vs Variable Rates: Decide whether a fixed or variable interest rate suits your financial situation better.
• Seek Professional Advice: Engage with a mortgage broker like Esteb and Co to navigate complex loan terms and find the best deal.

Frequently Asked Questions

1. Can I switch my loan if I have a fixed-rate mortgage?

Yes, but be wary of potential break fees which can be substantial. It’s crucial to weigh these costs against the benefits of switching.

2. How long does the refinancing process take?

Typically, refinancing can take anywhere from 2 to 6 weeks, depending on the lender and the complexity of your financial situation.

3. Can I refinance if my property value has decreased?

It might be challenging if your LVR exceeds 80%, but some lenders may still offer solutions. Consulting with a broker can provide more tailored options.

4. What documents will I need to refinance my loan?

You will generally need proof of income, identification, current mortgage details, and recent bank statements.

5. Will refinancing affect my credit score?

Initially, there may be a slight dip in your credit score due to the credit inquiry, but over time, successful refinancing can improve your credit if it reduces your overall debt burden.

6. Is it worth refinancing for just a 0.5% rate reduction?

Even a small reduction can lead to significant savings over the loan term. Use a calculator to estimate your savings and make an informed decision.