Help guide
Loan portability when you sell and buy
How home loan portability works in Australia, when substituting security beats refinancing, what it can save on a fixed loan, and the timing that makes or breaks it.
What portability actually does
Portability lets you keep your existing loan and swap the property securing it. The loan account, rate and term continue; only the security changes. It is often described as taking your loan with you, which is accurate as far as it goes.
It is not a new loan and not a refinance. That is the whole point of it, and it is where the savings come from — you are not discharging and re-originating, so the costs and the resetting that come with a refinance do not apply.
Where it saves real money
The strongest case is a fixed-rate loan. Breaking a fixed loan to buy elsewhere can trigger a break cost running into thousands or tens of thousands depending on the balance, the remaining term and where wholesale rates have moved. Porting the loan to the new property avoids crystallising that cost.
The second case is a loan on a rate you would not get again. If you are carrying a discount negotiated in a different market, refinancing hands it back. Portability keeps it. With the cash rate at 4.35% after three increases during 2026, more borrowers are in this position than were a year ago.
The third is the term. A refinance usually resets to a fresh 30 years unless you insist otherwise, which lowers the repayment and raises lifetime interest substantially. Porting keeps the remaining term intact.
What has to line up
The new property must be acceptable security to the lender, which means a satisfactory valuation and a property type the lender will take — some will not take small apartments, rural acreage or company title. The loan amount generally cannot increase under a pure port; if you need more, that is a port plus a top-up, assessed as new lending.
Your circumstances are usually reassessed, and the lender will apply current policy. A borrower whose income has changed since the original approval can find the port declined even though the loan itself is unchanged.
Timing is the part that goes wrong
The cleanest version is a simultaneous settlement: you sell and buy on the same day and the security substitutes without a gap. That requires both contracts to align, which is easier to describe than to arrange.
Where settlements cannot be aligned, lenders offer varying windows — some allow a gap of several weeks or months with the loan temporarily secured elsewhere or held, others require same-day. Ask about the window early, because it determines what settlement dates you can accept, and a contract signed before you know the answer can force a break you were trying to avoid.
Whether to use it
Portability is worth pursuing when you are on a fixed rate with meaningful break costs, or a rate you cannot replace. It is worth less when you are on a rate you would happily leave, when you need to borrow substantially more, or when the timing cannot be made to work — in those cases a refinance is often simpler and sometimes cheaper once cashback offers are counted.
Ask your lender for the break cost figure and the portability terms in writing before you decide, and compare them. Azure Home Loans can run that comparison alongside refinance options; this page is general information for Australian readers and the answer depends on your specific loan and contract dates.
About this page
FAQ
What is loan portability?
It lets you keep your existing home loan and substitute the property that secures it, so the loan account, interest rate and remaining term all continue while the security changes. It is not a refinance, which is precisely why it avoids the costs and the term reset that come with re-originating a loan.
Does portability avoid fixed-rate break costs?
Usually yes, and that is its main advantage. Because you are not discharging the loan, there is no early repayment to crystallise the lender’s hedging loss. On a large fixed balance with time left to run, this can be the difference between a manageable move and a five-figure exit cost.
Can I borrow more when I port my loan?
Not under a pure port, which keeps the loan amount unchanged. Borrowing more is a port plus a top-up, and the additional amount is assessed as new lending against your current income, the 3 percentage point serviceability buffer and current policy. The existing portion usually keeps its rate.
Do the settlements have to happen on the same day?
Not always, but it is the cleanest option. Lenders differ on how long a gap they allow between selling the old security and taking the new one, from same-day only to several weeks or months. Confirm the window before you agree settlement dates, because it constrains which contracts you can accept.
What if the lender will not accept my new property?
The port fails and you are back to discharging and refinancing, with any break cost that entails. Property types that commonly cause this include small apartments, rural acreage, serviced apartments and company title. Raise the specific property with the lender before you commit to buying it.
Is porting always better than refinancing?
No. It is clearly better when you hold a fixed rate with real break costs, or a discount you could not get again. It is often worse when you would happily leave your current rate, need to borrow substantially more, or cannot align settlements. Get the break cost in writing and compare the two properly.