Hi BerryWheatMe,
Essentially, mortgage portability allows you to transfer your existing mortgage, including the current balance, interest rate, offset account and all other features of the home loan, to the new property. So you can think of this as an alternative to simultaneous settlement.
Although you’re no longer reaping the benefits of avoiding a mortgage exit fee, there are still pros to loan portability. You can avoid possible break costs when refinancing a fixed rate home loan.
You can potentially save hundreds of dollars in upfront costs when applying for another home loan for the new property. The bank is simply replacing your home with a new security. This can help you avoid the time and hassle in refinancing your mortgage and applying for a new loan.
Another way it can help you is by allowing you to keep your current home loan features, debit card or card, online bank account and checking account as well as your same lender and interest rate. The loan portability feature may also have extra options that may allow you to, for instance, switch over from a variable or fixed interest rate so you can check to see what applies with your lender.
Hope this is helpful. If you want to learn more, you can check out our website or give us a call on 1300 889 743 or even simply enquire online for a free assessment.
Cheers,
Otto
How can loan portability help me?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
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