Move Your Home Loan – Control Your Finances Fast (2026)

Are you feeling trapped with your current home loan, burdened by high interest rates or unsatisfactory service? You're not alone. Many homeowners in Australia are exploring the possibility of moving their home loan to another bank in 2026, seeking better rates, improved terms, or simply a lender that better aligns with their financial goals. But how do you make the switch, and is it the right move for you?

Understanding Home Loan Portability

Home loan portability refers to the process of transferring your mortgage from one lender to another. This can be an attractive option for those looking to take advantage of lower interest rates, reduce monthly repayments, or access superior customer service. However, it’s crucial to weigh the benefits against the costs and potential pitfalls involved in switching lenders.

Current Market Rates and Requirements

In 2026, the home loan market in Australia is highly competitive. Interest rates for variable home loans currently range from 6.49% to 7.5%, while fixed rates can vary between 6.75% and 8%. Lenders may offer introductory rates that are lower, but it's important to read the fine print and understand how these rates may change over time.

When considering a switch, it’s vital to check the eligibility criteria, which may include a stable credit history, sufficient equity in your home, and the ability to meet the new lender's serviceability requirements. Esteb and Co can assist in finding a suitable lender from our panel of 83+ options, ensuring you get the best possible deal.

Steps to Move Your Home Loan

1. Evaluate Your Current Loan: Begin by reviewing your current mortgage terms. Understand your remaining balance, interest rate, and any exit fees that may apply.
2. Research New Lenders: Use tools and resources to compare potential lenders. Consider both the interest rates and the overall loan terms.
3. Calculate the Costs: Assess the costs associated with refinancing, including application fees, exit fees from your current lender, and any ongoing fees with the new lender.
4. Apply for Pre-Approval: Once you’ve chosen a lender, apply for conditional approval to ensure you meet their lending criteria.
5. Submit Documentation: Provide necessary documentation such as proof of income, identification, and details of your current loan.
6. Complete the Switch: Upon approval, your new lender will handle the transfer of your mortgage from your existing lender.

Tips and Considerations

• Timing is Key: Consider the timing of your switch to avoid penalties and take advantage of favourable market conditions.
• Negotiate Terms: Don’t hesitate to negotiate terms with potential lenders. Many are willing to offer competitive rates to win your business.
• Understand Fees: Be aware of all associated fees and factor these into your decision-making process.
• Consult a Professional: Engage with a mortgage broker like Esteb and Co to navigate the complexities of switching lenders.

Frequently Asked Questions

1. Can I switch lenders if I have a fixed-rate home loan?
   Yes, but it may involve break fees. Evaluate if the savings outweigh these costs.
2. How long does it take to switch home loans?
   The process can take anywhere from a few weeks to a couple of months, depending on the lenders involved.
3. Will switching lenders affect my credit score?
   There might be a short-term impact, but responsible management of your new loan can improve your score over time.
4. Can I add a redraw facility when switching my home loan?
   Many lenders offer redraw facilities, but confirm the terms as part of your new loan agreement.
5. What happens to my mortgage insurance when I switch lenders?
   If you paid Lenders Mortgage Insurance (LMI), it cannot be transferred. You may need to pay it again if your new loan requires it.
6. Are there tax implications in switching home loans?
   There are generally no tax implications, but consulting a financial adviser is wise for personalised advice.