Transfer a Loan – Relief When Moving Homes (2026)

Imagine this: you've found your dream home, but you're already locked into a mortgage on your current property. Can you transfer your loan to the new house without starting from scratch? It's a common scenario many Australians face, and the good news is that there are options available to help you manage your finances while making your next move.

Understanding Home Loan Portability

Home loan portability is a feature offered by many lenders that allows you to transfer your existing loan from one property to another. This can be a convenient option if you're looking to move without the hassle of applying for a new loan. However, it's important to understand that not all loans come with this feature, and there are specific criteria and conditions that must be met.

Portability essentially means that you can keep your existing loan terms, such as the interest rate and loan term, which can be beneficial if you secured a favourable rate when you first took out the loan. However, it's crucial to note that the new property must be of equal or greater value than your current one, and your loan balance should not exceed the property's value.

Key Information: Rates, Requirements, and Options

In 2026, with the Australian property market continuing to evolve, understanding the financial landscape is essential. Current home loan interest rates vary broadly across different lenders; as of now, they range from 6.49% to 12%. Therefore, maintaining a competitive rate through loan portability can be significant for your financial planning.

When considering loan portability, here are some key requirements:

• Your existing loan must allow portability.
• The new property must meet the lender's criteria, often needing a valuation.
• Your financial circumstances should remain stable, ensuring you meet serviceability requirements.
• Portability fees may apply, and these can vary between lenders.

At Esteb and Co, with access to over 83 lenders, we can help you identify whether your current loan is portable and assist in evaluating the best options available for your circumstances.

Steps to Transfer Your Loan

Transferring your loan to a new property can be straightforward if you follow these steps:

1. Review Your Loan Contract: Check if your loan includes a portability feature.
2. Contact Your Lender or Broker: Reach out to your lender or an Esteb and Co broker to discuss your options.
3. Get a Valuation: Have the new property valued to ensure it meets the lender's criteria.
4. Assess Your Financial Situation: Ensure your financial circumstances haven't changed significantly, as you will need to demonstrate ongoing serviceability.
5. Submit Your Application: Complete any necessary paperwork and pay applicable fees to initiate the transfer.
6. Settlement: Coordinate the settlement of your current property and the purchase of your new one, ensuring a seamless transition.

Tips and Considerations

When considering loan portability, keep the following tips in mind:

• Timing Is Key: Align the sale of your current property with the purchase of your new one to avoid bridging finance, which can be costly.
• Understand the Costs: Be aware of any fees involved in the portability process, and compare them against the costs of a new loan application to ensure you're making a cost-effective decision.
• Evaluate Property Value: Ensure the new property is of equal or greater value to avoid complications with your lender.
• Consider Market Conditions: If interest rates have dropped significantly since you secured your loan, it might be worth exploring new loan options despite the convenience of portability.

Frequently Asked Questions

1. Can I transfer my loan if I want to downsize?

   Yes, but the new property must still meet your lender's criteria and your loan balance cannot exceed the property's value.

2. Do all lenders in Australia offer loan portability?

   No, not all lenders offer this feature. It's important to check with your lender or a broker like Esteb and Co to confirm your options.

3. What happens if my financial situation changes?

   If your financial situation changes, it may affect your ability to transfer the loan. Lenders will reassess your serviceability before approving the transfer.

4. How long does the loan transfer process take?

   The process can vary depending on the lender and your circumstances, but it typically aligns with the property settlement timeline.

5. Are there any tax implications when transferring a loan?

   Loan transfers themselves do not have direct tax implications, but selling and purchasing property can. It's wise to consult a tax professional for personalised advice.

6. Is loan portability available for investment properties?

   Yes, some lenders allow portability for investment properties, but the criteria may differ from owner-occupied homes.