“Portable” fixed loans

Hi guys,

I just found out something today from my mortgage broker that I thought was quite interesting.
Not sure if any of you have heard about it.

I have a couple of fixed loans secured by one property, that I would like to put on the market to off-load.
And the usual story … bank charging exorbitant fixed rate break penalties, using some "secret" formula that they don't disclose to anyone.

When I asked my mortgage broker for options if I decided to sell the property, he said that the fixed loans were "portable".
Meaning they could be "moved" to be secured by another property, as long as there was sufficient equity in the property to carry those loans.
Thankfully these loans are small ($74,100 and $31,600), and I do have one investment property that I have sufficient equity in.
The only down-side is that I'm looking to sell that property soon this year.

That being the case, I may end up securing those fixed rate loans against my PPOR, which currently has a couple of LOCs to the maximum amount of remaining equity.
So, the limit on one of the LOCs would reduce down by $105,000 to accommodate the two small fixed loans.
And, then I can let the loans run their fixed periods until 2010, and then pay them out as soon as they mature.

Anyone heard of fixed loans being "portable" like that?

Peter