Transfer Home Loan? Discover Your Options Fast (2026)

Transferring a home loan to someone else is a query that pops up frequently, especially in a fluid real estate market. Whether it's due to a change in circumstances like a relationship breakdown, financial hardship, or simply a strategic financial decision, understanding if and how you can transfer a home loan is crucial. This guide will navigate you through the complexities, requirements, and options available in 2026 for transferring a home loan in Australia.

Understanding Home Loan Transfers

Transferring a home loan, often referred to as a "mortgage transfer" or "loan assumption," involves shifting the responsibility of a mortgage from one party to another. This is not a straightforward process, as it involves the lender's approval and the transferee meeting specific criteria. In Australia, this is less common compared to refinancing or selling the property, but it can be viable in certain situations.

Current Market Rates and Requirements

As of 2026, interest rates in Australia for home loans range between 6.49% and 12%, depending on the type of loan, lender, and the borrower's credit profile. When transferring a home loan, the new borrower will likely need to meet the lender's standard eligibility criteria, which may include:

• Proof of income and employment stability
• Creditworthiness and credit score assessment
• Asset and liability verification
• Meeting the lender's serviceability requirements

Here's a comparison of some key requirements across different lenders:

With access to over 83 lenders, Esteb and Co can help you find the right fit for your specific situation, maximising your chances of a successful transfer.

Steps to Transfer a Home Loan

Transferring a home loan involves several key steps:

1. Discuss with your lender: Approach your current lender to discuss your intention to transfer the loan. Some lenders may have policies that allow transfers, while others may not.
2. Assess the new borrower's eligibility: The person you wish to transfer the loan to must meet the lender's eligibility criteria.
3. Submit an application: This will typically involve a formal application process, similar to applying for a new loan.
4. Documentation: Prepare and submit all necessary documents, including proof of income, identification, and any other required financial documents.
5. Approval and legal documentation: If the lender approves the transfer, legal documentation will be required to finalise the process.

It's important to note that fees may apply, and the new borrower may incur stamp duty depending on the circumstances.

Tips and Considerations

Here are some expert tips when considering a home loan transfer:

• Evaluate the costs: Transferring a home loan may incur fees such as administration fees, legal fees, and potentially stamp duty. Weigh these costs against the benefits of transferring the loan.
• Tax implications: Consult with a financial advisor to understand any tax implications that could arise from the transfer.
• Consider refinancing: Sometimes refinancing with a new lender might offer better terms, especially if a transfer is not feasible.
• Use a broker: An experienced mortgage broker, like those at Esteb and Co, can provide invaluable assistance in navigating lender requirements and finding the best options available.

Frequently Asked Questions

• Can I transfer my home loan to a family member? Yes, provided the family member meets the lender's criteria and the lender permits such transfers.
• Is it cheaper to transfer a loan or refinance? This depends on the specific circumstances, including fees and interest rates. It’s essential to compare both options.
• What happens if the lender does not allow transfers? If a transfer is not allowed, selling the property or refinancing may be the next best options.
• Can a home loan be transferred as part of a divorce settlement? Yes, but both parties must agree, and the transferee must qualify for the loan on their own.
• Are there alternatives to transferring a home loan? Alternatives include refinancing or selling the property. Consulting with a broker can help identify the best option.
• How long does a loan transfer typically take? It can take from a few weeks to several months, depending on the lender's processes and the complexity of the transfer.