Home loan portability: transfer your mortgage to another property

A home loan is a decades-long commitment. But what happens if you decide to move because your family is growing, you want to downsize, or to get closer to work? 

A 2023 report from Domain revealed that the median tenure for houses in Australia is 9 years, or just 8 years for those in units. That’s a lot shorter than the length of most home loans, which often last between 20 to 30 years.

So, if you find yourself in this situation, can you move a mortgage to another house?

Thanks to a fairly common home loan feature, known as loan portability, you can sell your current home and buy a new one, while keeping the same mortgage.

Home loan portability is a feature that lets you transfer your existing home loan to another property. Also known as a security swap, loan portability switches out the property currently securing your home loan for a new one.

Using loan portability means you won’t have to refinance your home loan or complete the application process all over again. It can also help you avoid paying new application fees, although some lenders charge a security swap fee.

Not every home loan has a portability feature, so you will have to contact your lender to double-check that it’s an option for you.

When you use your loan’s portability feature, you will usually have to make a like-for-like home purchase, where the value of the properties is of equal or greater value. Your lender will perform a property valuation to help determine this.  

If the value of your new property is worth more than the original loan amount, then you may also need to apply for a loan increase.

Most people will fit into one of two categories when it comes to loan portability, depending on the timeline of their new property purchase: 

• Simultaneous settlement.
• Deferred settlement.

Simultaneous settlement

Simultaneous, or ‘same time’, settlement is used when you’re buying and selling at the same time.

In this case, your lender will help you negotiate so that the settlement dates on both properties line up, allowing you to simply transfer your mortgage across and continue making uninterrupted repayments.

Deferred settlement 

Deferred settlement is for situations where you sell your home, but are yet to buy or settle on a new one. Your lender may still let you take advantage of your loan portability but will give you a set amount of time in which to complete the process (e.g. 6 months).

Throughout this time, you will have to continue making your regular repayments.

To get the home loan portability process started, you’ll need to contact your bank or lender to check if your loan is eligible for it, and to get the ball rolling. 

A mortgage transfer to another property isn’t as simple as just calling them up and requesting it, of course. It typically involves signing a release of property form, organising valuations, and signing contracts of sale for both properties.

Your lender or bank will then lay out the finer details of porting your home loan. It’s at this point that you may want to compare home loans to make sure you’re getting a good deal on your current one. After all, you might be moving homes, but you’re bringing the same mortgage with you.

What’s best for one person might not be the best for you. That being said, if you like your home loan and your lender, you’re able to keep paying similar mortgage repayments and save on the costs associated with getting a new loan, then porting your mortgage might look like a good option for you. 

On the other hand, if your current home loan doesn’t have the features you want, is charging you more than you could be paying elsewhere, and you can save money by refinancing, then opting for a refinance home loan might suit you better. 

For more information about home loan features, browse our home loan guides hub. And if you’re in the market for a new loan, visit our home loan comparison page.