The internet is confusing... Hoping I can find an answer from real life experiences.
We bought our house a few years ago since then my hubby has incurred a debt that went to collections which we're paying. This was due to losing his job and not being able to find another for sometime and all our money went on our mortgage so other bills just grew. However our family has grown since and our home is too small. My question when you sell your home do you have to re apply for your mortgage? Are we able to transfer the mortgage to another property? There is no way hubby will be able to get any sort of loan even with his current good paying job. How do we do this? How does it work? We are desperately running out of room and its driving us all crazy...
Help.
5 Replies
Go and speak to a mortgage broker. They know every trick in the book to get you a loan, and it's in their interest to get you the loan as they get paid by the lender - you don't have to pay them anything!! I've just used one and he's like a magician... If you're on Victoria let me know and I'll pass on his details.
Also, you can't transfer the mortgage, but if you have a deposit for the new house and he has a good steady income at the moment, a mortgage broker will absolutely 100% be able to get you finance. It won't be with the big 4 banks - it will probably be low doc / no doc loan which means 1% higher interest rate. But with rates so low it won't be that bad.
Thank you so much for your reply, I will look into this immediately! Xo thank you! A MB totally slipped my mind.
Yes you reapply for finance home loans are tied to the property.
Keep in mind though while it will mean a smaller deposit you can use proceeds from the sale to clear the debt and his credit rating.
Rates don't get much lower so timing is good to refinance anyway.
You can transfer your mortgage to another property. It's called a Portability . Best to talk to the Financial Institution where your mortgage is.