How To Take Your Mortgage With You

When looking to buy your next home there is one important home loan feature you would like on your mortgage – and that is being able to take it with you.

This home loan feature is also referred to as ‘portability’ or ‘security substitution’ and means that you are able to keep your same home loan account number and BSB (if applicable) when selling one property to purchase another and only the mortgage amount changes. Depending on the home loan product, you may also have the option of selecting different loan features, changing the split of your loan, or even switching to a completely new home loan product.

The benefit of taking your mortgage with you is that you won’t need to make any changes to your direct salary crediting and your automatic direct debits can continue without change or interruption saving you the hassle of setting them all up again under a new mortgage.

By having a mortgage that is ‘portable’ the process of purchasing your next home is made much simpler:

  • The application process is quicker and more streamlined
  • There is less paperwork / documentation requirements
  • Internet banking is already set up
  • Faster access to the funds

However, for this process to work you need to be able to sell your existing home and purchase your current home at the same time. Both properties must settle on the same day. Depending on your circumstances, this is not always possible.

There is a great cost saving using this method, as you will not have to pay for bridging finance and possibly end up repaying two mortgages whilst waiting for your current property to be sold.

The process of taking your mortgage with you:

Once you have found a house that you would like to purchase and have a buyer for your existing home, contact your Mortgage House Home Loan Specialist to complete two key forms:

  • Application form and include supporting documentation
  • Request for Variation form

We are happy to discuss your options regarding financing the purchase of your next home with you and show you the best and most cost effective way in doing this.
Get Started Today: Call us on 133 144 or Enquire Online.

What are portable loans?

Portable home loans are mortgages you can take with you when you move. You might be surprised to realise your existing loan may already have the portability feature in it. While most mortgages are for 30 years, the chances of staying in the same house for that long are a lot less today than they were in the past. So, it makes sense to have a mortgage that can change with the times, and offer you the flexibility of portability. A portable home loan means when you do move – selling one property and buying another – you can keep the same loan account and BSB number. It is only the mortgage amount that may change. Depending on which mortgage product you choose you may be able to connect to new, different loan features, or even select a whole new loan. If you need to increase the amount you want to borrow, and it is more than your current loan allows, then you may have to apply for a new loan.

What are the benefits of home loan portability?

Flexibility is the main benefit of loan portability, second only to simplicity. You won’t need to make any changes to your direct debit arrangements, as you can just continue making payments as you always have. Setting up all this again can be a real hassle. On top of that, having a loan that is portable can mean the process of purchasing your next home can be a lot simpler. The application process will be quicker and a lot more streamlined. There will be less paperwork, and the documentation requirements are unlikely to be as strict. When you add to this the fact that all the internet banking details will be ready to go, the result can be quicker access to funds.

Can a mortgage calculator help my home loan search?

Mortgage calculators can be a great resource whether you are looking for a new loan, or want to give your current mortgage a health check. If you are thinking of changing to a loan with a lower variable interest rate, or a different fixed rate, then you can look at what your repayments may be with our repayment calculator. If you want to see if there is a chance of being successful when applying for a larger loan, our borrowing calculator can give you an early indication. We even have a calculator that can help you search for the best Mortgage House interest rate, and one that can let you know how much you may save if you switch mortgages. At Mortgage House, we want you to have access to the information and resources you want to find a home loan that suits your property goals.

Are you looking for ways to compare your home loan portability options?

Choosing portable home loans can be difficult, especially as it is a feature included in a lot of mortgages, especially Mortgage House ones. Being able to compare loans that include features such as portability is important. You can compare up to five of our loans at the one time on our website, making it easier to find portable loans, and loans with other features that suit your mortgage needs. Comparing repayments and interest rates is standard fare with a lot of banks and lenders, but we want to help you compare all the features, fees, purposes and important details of all our home loan options. You can compare our loans by fixed or variable rates if you like, or you can get into the details straight away, comparing them by features, including portability. This can give you a much clearer idea of your options, and what other features portable loans include.

How does loan portability work?

Once you have found a house you want to buy, and you have someone who wants to buy your current home, you can contact our lending experts and complete two important forms – an application form with supporting documentation, and a variation request form. Our lenders can answer any questions you have about the process and will be able to talk you through your options. These options will include details around the purchase of your new property and what the cost-effective, and best, options, may be. However, there is an important piece to this process. You must be able to sell your current home, and buy your new one, at the same time. That can sometimes be tricky, and may not always be possible. However, this can be a great way to save money, as you won’t have to take out a bridging loan, which is often the case when people sell their home and buy another.