What is special about a ‘portable loan’?

What is a portable loan?

Most lenders offer portability with their home loans, but what does that actually mean?

If your loan is portable it means you can change the security for the loan without having to go through the whole credit process again - providing you meet certain conditions, the 3 main things being:

  1. you don't need to increase your loan amount,

  2. secondly that the loan you need is not more than 80% of the value of your new security and

  3. thirdly that the sale and purchase settle on the same day - or your purchase can settle within a few days AFTER your sale in a lot of cases.

(On this final point, an issue can come up where your loan is now a higher percentage of the value of your property, to explain – lets say your loan was originally 60% of the value of your old place, but now it’s 75% of the value of your new place, lenders don’t love this so it may end up going through credit anyway.)