Transferring mortgage to new lender 2021

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Forums › Finance and wealth management › Transferring mortgage to new lender 2021 - have I missed anything?

Blurtie

468 posts

Ultimate Geek

#285971 28-May-2021 10:20

Hey all,

My fixed terms are coming up for renewal soon, so I thought it's a good time to shop around. I've been with my current bank for 3 years now, so I'm pretty sure I'm free to move now without any penalties (we had a cash contribution at the start that tied us in for a minimum 3 year term).

I'm aware that I'll need to go through my lawyer to get the new mortgage transferred, so have factored in those costs (which will be covered by cash contribution from new lender.) But apart from that, assuming I arrange the transfer for after the expiry of the fixed term, is it as simple as that? Have I avoided 'break fees' by doing this way? Is there anything else I've missed?

I have reached out to both banks, but just wanted some real world views from people who have done it recently.

Cheers

KrazyKid

1238 posts

Uber Geek

#2714379 28-May-2021 10:41

Having just done this - it was a relativity easy process for me.
The new Bank did most of the work.

There will be a discharge fee from your existing lender to close out the mortgage at their end even if you have no break costs.

In my case Westpac charged me $105.
Your fees many be different.

Blurtie

468 posts

Ultimate Geek

#2714464 28-May-2021 11:32

Thanks, that's good to hear it was an easy process for you. Thanks for heads up about the discharge fee.

I've been getting grief from a mate telling me not to do it and that I'm just wasting my time.. But, apart from my time (which has only been a 30min meeting a couple of emails so far) I can't see his point... The cash contribution I'm getting more than makes up for it..