Mortgage on moving....What happens?

[Northernbeachbum]

Looking at getting the house on the market in the next month or so, what happens with our mortgage on moving? Do we reapply? Or does it just transfer over?

Some will allow you to port the existing one, others you redeem and reapply. There may be redemption charges payable.

Sometimes a mortgage is portable, but usually you have to pay it off and take out a new one for the new house. Check with your existing lender.

Also speak to an independent advisor who can look at your current mortgage as even if there are redemption charges they might be able to swap you onto another mortgage at a better rate so you would recoup any losses made quite quickly. Its also a good idea to get a mortgage arrangement in principal before you start looking so you can be sure of getting what you need before you find a property.

Thank you, thats interesting. We are planning to downsize so will need a smaller mortgage so if we can't port it we may as well pay off a fair whack in one go.