Browse Forums Home Finance 1 Nov 11, 2009 2:08 pm Hi everyone, I have question about home loan portability. We are looking at selling our house, buying another and want to use the current mortgage and the same loan amount. My question is, will the bank need to approve us for the loan amount again? Our income has reduced since getting the mortgage - I've stopped work to do full time study - an my partner's salary isn't technically enough for the current loan amount. Also, we are buying in a different region and will be getting new jobs and so don't want to have to wait out the probation periods on the new jobs before we can get a new home loan as that will mean we have to rent and want to avoid that. We've been successfully paying the mortgage on our reduced income for the last 9 months. Anyone have any idea about the process of home loan portability? Thanks, Ishenka Re: home loan portability question 2Nov 11, 2009 9:18 pm Hello Ishenka, welcome... This is also called a substitution of security. We unsuccessfully tried doing it for our construction loan to avoid fees for breaking our old mortgage. From memory you advise the bank you want to do this prior to selling and have their approval. Then you sell your old property and the lender holds onto your funds until you are ready to purcahse another property. Timing is quite important as they wont hold them forever (my last bank had a 3 month time limit). Unless you need to borrow more, I dont think you are required to complete additonal checks. I suggest you see a broker or call/visit your lender directly for more specific information. From experience a "free" broker will be able to provide much better advice than the call centres. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19112 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35330 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11933 |