If I wish to transfer another character to a world where I have an existing character already with an entry level account, will this now be able to work?

I am at the prompt and it is saying, when prompted at the destination homeworld.

"You have 1 character(s) on this Home World. 0 character(s) may still be transferred."

As if it is implying I cannot do this, or if I do transfer I'll lock a character out.

Is this normal?