I am thinking of fixing my home loan. I understand there can be breakage fees if you refinance during the period. What if I want to sell and buy another home do the breakage fees apply or is the loan transferable to the next property?

Hi Geoff, generally the loan is transferable - or portable - so long as the borrowers don't change (which they don't sound like they will in your case) & the loan to lending value (LVR) is still within the bank's parameters, ie. most commonly the loan should be no more than 80% of the market value of the property and/or new property in your case. If you find that there is a time lag between selling & buying, you generally have the option to put sufficient $$ on Term Deposit to secure the loan pending the new purchase, but you'd want to do the sums to compare break cost to difference between interest paid on loan less interest earnt on Term Deposit. Just check with your bank though to be 100% sure, although I suspect the majors at least should all be similar. Cheers........

Generally speaking yes, your loan would be transferable to another security property but it depends on whether the particular lender offers what is calked "portability" which is the ability to transfer the loan from one security property to another. And the settlement dates need to coincide, i.e. Both on the .same day. Otherwise it can't be done & you have to pay the break fees associated with the original loan. Best ask your lender.

Cheers,

Michael Budge
Bayside Finance Group
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