Though most home loans go for as long as 25 or 30 years, rarely does a borrower live in the same property for the entire term. Some of them upgrade to better residences while some downgrade to cater to their needs better. Because of which, loan portability or the ability to transfer the same home loan from one property to another without set-up or extra fees has been a popular loan feature.

Loan portability on home loans has been increasing. Research show that 86 percent or 814 out of 950 residential home loan products have loan portability. Since borrowers are also banking on convenience, loan portability provides benefits in processing time and loan costs. Loan portability can save you up to $800 for the establishment fee of a new loan while exit fees costs a portion of the borrowed amount.

Also, exiting your mortgage for a new home loan can add thousands of dollars to the home loan bills. But by using the new property as security for the old one, you may be able to move the loan from one property to another while saving a large sum of money. This move will also save you from the hassle of filing for new documents if the loan portability is not used.

Because of which, the demand for loan portability is increasing. While there are no restrictions on the type of home loan products that will have loan portability, there are some information such as the number of borrowers cannot be changed. Also, the interest rate that will be paid remains the same and a new contract need not be signed and the account number for the loan remains the same.

A $300 security subscription fee is needed for the loan portability option to be triggered and this fee may vary depending on the size of the loan. If you are keen in having loan portability, check the products of your loan lender to determine whether they allow loan portability. It is also noteworthy to point out that loan portability can help you save on stamp duty fees as well.