Moving into a new home is an exciting opportunity to embark on a new life for you and your family. While you're probably shopping for a mortgage to finance the purchase of your new home, you actually have the option to transfer your existing mortgage to the new property. Understanding this process and how it can benefit you is the first step to saving money with a mortgage transfer.
Taking your mortgage to a new home
Mortgages are often able to be transferred to another property, but it's important to talk to your lender before you decide to forgo fresh financing. Your lender will be able to review the terms of your mortgage with you to determine whether you're eligible to retain your mortgage when you move.
Approximately 90 percent of mortgages are portable. While there are small fees associated with moving a mortgage to a new property, these fees tend to be substantially lower than the costs of establishing a new mortgage.
The benefits of a mortgage transfer
Homeowners have to decide between transferring their mortgage or applying for new financing when they move to a new home. A major benefit of transferring an existing mortgage is that you won't have to pay the hefty legal fees associated with the establishment of a mortgage. Banks may also charge substantial fees for the mortgage application, so taking your mortgage with you gives you the benefit of saving money.
You're able to save yourself the hassle of shopping around for a new loan when you transfer your mortgage. Remember how difficult it was to search for the best rate and terms when you were looking for your current mortgage? Do you really want to go through that process again? Moving can be a stressful time for a family, and transferring your mortgage gives you the opportunity to cut out much of the stress.
Another way that taking your mortgage to your new home saves you time is by allowing you to continue to make payments as previously scheduled. There's no need to set up a new automatic payment to ensure that you don't miss an installment.
Mortgage portability is a loan feature that you should consider when you're looking for financing options. If you're shopping for your first home and comparing mortgages consider prioritising mortgages that offer portability to allow you convenience and savings in the future should your circumstances change.
While it's most likely you're searching for a place to call home for the long term, it is a real possibility that you will need to transfer a 20 or 30 year loan at an unforeseen point in time.
Talk to a broker
To find out more about how you can benefit by utilising a mortgage transfer, contact a qualified mortgage broker at Mortgage Choice. We love to help our valued clients secure their financial wellbeing.