Loan Portability & Early Repayment Penalties
🔹 What You Need to Know in Australia
🎯 What is Loan Portability?
✔️ Move your current home loan to a new property without refinancing
✔️ Avoid loan establishment & application fees
✔️ Retain your existing loan terms & interest rate
⚠️ Things to Consider:
The lender must approve the new property as security
Some lenders require same-day settlement
If borrowing more, additional approval is needed
💰 Early Repayment Penalties (Break Fees)
🏡 Charged when:
✔️ Paying off a mortgage before the loan term ends
✔️ Refinancing a fixed-rate loan before expiry
✔️ Making large extra repayments beyond limits
📊 Break Fee Calculation Depends On:
Remaining loan term
Interest rate differences
Loan balance
📉 How to Minimise Costs:
✔️ Check break fees before refinancing
✔️ Use loan portability if moving
✔️ Negotiate with your lender
💡 How a Mortgage Broker Helps
🔍 Assesses Loan Portability – Checks if it’s the best option for you
📊 Calculates Break Fees – Estimates potential costs
🏦 Explores Alternatives – Finds better loan options
📄 Handles Paperwork – Ensures a smooth transition
🏠 Final Thoughts
👉 Loan portability saves time & money but has lender restrictions
👉 Early repayment penalties can be costly, but strategic planning helps avoid them
💡 A mortgage broker ensures you get the best deal & guides you through the process
📢 Thinking about moving, refinancing, or paying off your loan?
