Change Loan Name? Discover the Truth (2026 Guide)

Have you ever considered transferring your mortgage to someone else’s name? Whether it’s due to a separation, a family agreement, or a business decision, understanding the process of changing a loan into someone else’s name in Australia can be crucial. This comprehensive guide delves into the intricacies of such a transfer, providing you with the knowledge and confidence to tackle this complex issue head-on.

Understanding Loan Transfers

In Australia, transferring a loan into another person’s name is known as a loan assumption. This involves the new borrower taking over the existing mortgage, including its terms, interest rates, and repayment schedule. While it might seem like a straightforward process, it can be intricate, involving legal, financial, and logistical considerations.

The key to a successful loan assumption lies in understanding the lender’s policies and the eligibility criteria that both the current and new borrower must meet. It’s not merely a paperwork shuffle; it’s a thorough process that requires approval from the lender and often a complete reassessment of the loan under the new borrower’s financial circumstances.

Current Market Information and Requirements

As of 2026, interest rates in Australia for home loans typically range from 6.49% to 12%. Lenders have become more stringent with their criteria for loan assumptions, largely due to economic shifts and risk assessments. Here's a look at the current requirements and options available for those considering a loan transfer:

At Esteb and Co, with access to over 83 lenders, we can help navigate these requirements, offering tailored advice to suit your unique situation.

Steps to Change a Loan Into Someone Else’s Name

Embarking on the journey to transfer a loan can be daunting, but breaking it down into manageable steps can simplify the process:

1. Consult with Your Lender: Initiate the process by discussing your intention with your current lender to understand their specific requirements.
2. Assess Financial Eligibility: The new borrower should review their financial situation, ensuring they meet the lender’s criteria for income, credit score, and other requirements.
3. Property Valuation: Arrange for a current valuation of the property, as this will be critical in the approval process.
4. Complete an Application: The new borrower will need to fill out a formal application, similar to applying for a new loan.
5. Legal Documentation: Involve a solicitor or conveyancer to handle the necessary legal paperwork and ensure compliance with all legal obligations.
6. Await Approval: Once all documents are submitted, the lender will assess the application, and the new borrower will need to await approval.

Tips and Considerations

Approaching a loan transfer with a strategic mindset can make a significant difference:

• Expert Guidance: Enlist the help of mortgage professionals, like those at Esteb and Co, to navigate the complexities with ease.
• Consider Refinancing: Sometimes refinancing under the new borrower’s name can be more beneficial if the current loan terms are not favourable.
• Understand Tax Implications: Transferring property and loans can have tax consequences, so consulting with a tax advisor is crucial.
• Explore Alternative Solutions: If a loan transfer is not feasible, consider other options like co-signing or restructuring the loan.

Frequently Asked Questions

1. Can I transfer a loan to a family member? Yes, transferring a loan to a family member is possible but requires lender approval and meeting all eligibility criteria.
2. What are the costs involved in a loan transfer? Costs can include application fees, legal fees, and potential stamp duty, depending on the circumstances.
3. How long does the loan transfer process take? The timeline can vary but typically ranges from a few weeks to a couple of months, depending on lender processing times.
4. Is a credit check required for the new borrower? Yes, the new borrower will undergo a credit check as part of the lender’s assessment process.
5. What happens if the lender rejects the application? If rejected, exploring refinancing or alternative financial arrangements might be necessary.
6. Can I transfer my loan if I’m behind on payments? This can complicate the process, and you may need to catch up on payments before considering a transfer.
7. Is it possible to transfer an investment property loan? Yes, investment property loans can be transferred, albeit with potentially stricter criteria.