Can we get a new owner occupier loan while living own house

Discussion in 'Loans & Mortgage Brokers' started by RoadRunner, 7th May, 2020.

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  1. RoadRunner

    RoadRunner Active Member

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    Is it easy to get owner occupier loan while still living in own house?

    We are planning to buy and move to a different house (almost similar in value) and make current one as investment and rent it out.

    We can get rental appraisal for current house from local RE agent that would add to our serviceability calculation.

    Current home loan is on a low owner occupier interest rate. I guess if we don't tell our current lender that won't change.

    If new lender accepts our loan application(for pre-approval) as owner occupier for new house, we will get low OO interest rate.

    Can new lender give us pre-approval for owner occupier if we just tell the intentions as described above?


    If we bought the house and don't move there (because new house is not suitable for own living), is there anything bank can do?
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    In short, yes this certainly can be done as described
    Do you need a pre-approval? most aren't credit assessed anyway
    If you borrow funds intending for Owner Occupied and then decide not to move into it technically nothing the bank can do however they may find out you're not living in it and switch your product to investment.
    Be upfront about your actual intentions, your serviceability and loan agreement would be based on having the existing property rented out.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Yes and you could end up with 2 OO loans.
     
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    check the conditions of your mortgage contract for the existing loan

    Do u have a cash deposit and for costs for the new police ?


    ta
    rolf
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Bribery prob not necessary!
     
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  6. Ian87

    Ian87 Well-Known Member

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    Sure you can get away with it easy but that excuse needs work. Just ask if you can fiddle the bank.