What does transferring a mortgage actually mean?
A mortgage is the security registered against the property. The home loan is the money you owe under the lending contract. When people talk about transferring a mortgage, they usually mean asking the lender to keep some or all of that lending while replacing the old property security with the new one.
The Reserve Bank describes portability as shifting a loan from one property to another without increasing its value. Its debt-to-income rules recognise this category, but they do not require a bank to approve your move. Treat portability as an option to investigate, not a feature you already own.
Start with the next property and your actual numbers
The lender may look again at your income, expenses and current debt, as well as the next home's value, title, condition and insurability. A cheaper home does not automatically mean all the existing debt can follow it. Ask for a written before-and-after picture showing the sale proceeds, retained loan, any additional borrowing, fees and expected repayments.
Ask the lender for these answers in writing
- Can the existing lending move to this particular property?
- Which loan portions, fixed rates and repayment terms could continue?
- Will affordability be reassessed?
- Is a registered valuation or another property report required?
- Must the sale and purchase settle on the same day?
- What happens if either settlement is delayed?
- Could break fees, legal fees or cashback repayment apply?
- When must insurance for the next property be confirmed?
Can you keep an existing fixed rate?
Do not assume the rate moves simply because you stay with the same lender. Ask about every fixed and floating portion. The lender might let one portion continue, require another to be repaid, and price any extra borrowing separately.
Consumer Protection explains that repaying a fixed-rate loan early can trigger a break fee if the contract allows it. A cash contribution may also be repayable during its clawback period. Compare those costs with the value of preserving your current rate.
Make settlement timing part of the approval
Aligned settlements can let your lawyer direct sale funds into the purchase and coordinate the change in security. However, a linked chain has more points where timing can slip. Settled's settlement guide explains the lawyer's role in transferring funds and registering the new ownership.
If you buy before selling, you may need bridging finance. If you sell first, the old lending may be repaid before you buy, which can change what terms are available later. Have your lender and lawyer confirm the proposed sequence before signing, including what happens if a date changes.
Use your own dates and figures
Compare the funding pressure of each moving route.
The private move planner carries your sale price, mortgage, selling costs and next-home price into sell-first, aligned-settlement and buy-first scenarios.
Keep each professional in their lane
Your lender or mortgage adviser confirms approval, rates, fees and repayment terms. Your lawyer checks the loan and property documents, agreement conditions and settlement mechanics. Your insurer confirms cover. Your agent can help with likely sale timing and negotiating dates, but a promising campaign timetable is not finance or legal approval.
Give everyone the same figures and dates. Include likely net proceeds after the mortgage and selling costs, not simply the expected sale price. If a price, condition or date changes, take the revised plan back to the lender and lawyer before agreeing to it.
Frequently asked questions
Can a mortgage be moved from one house to another?
A lender may allow the existing lending to be secured against the next property. This is often called loan portability or a security substitution. It is not automatic: the lender must approve the borrowers, property, loan amount and settlement arrangement.
Does mortgage portability avoid a new lending assessment?
Do not assume so. Reserve Bank rules recognise portability in some debt-to-income settings, but your lender can still assess the borrowers, property, insurance and documents under its own criteria.
Can you keep the same fixed interest rate when moving?
Possibly, but it depends on the loan contract and lender approval. Ask whether each fixed portion can continue, whether any amount must be repaid or refixed, and whether break costs or cashback repayment could apply.
Do both properties need to settle on the same day?
Not always. Same-day settlements can make the transfer easier to coordinate, but they create a longer settlement chain. If the dates differ, ask the lender and lawyer whether bridging finance, temporary repayment or another arrangement is required.
Official sources
Reviewed 15 August 2026. Lending approval, fees and portability depend on the lender, contract, borrowers, property and settlement arrangement.
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