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. Contact a Mortgage House Home Loan Specialist today.