Hi, I have one property and I lived there for 6+ years, I rented it out 6 months ago and I myself moved to a rental property. I never let the bank know that it is an investment property (no malicious intent) it never occurred to me. Should I let the bank know now? I understand that the rates for Investment property are more but will the bank ask for contract letter making and charge me for the 6 months? I have been told that I will still be able to make claims if any with the ATO as an investment property and without having the bank know the same. Is that true?
no If you borrowed to buy the property and that property is income producing it is irrelevant whether the lender has labelled it one way or another.
Ok great! So should I be converting it to investment loan? Is there is disadvantage to not changing it? Current circumstances any benefit if I convert it to investment loan? In terms of tenant unable to pay and for me to have deferral ?
You should read your loan contract and see if you have promised to notify the lender, and then consider the consequences of not doing so even required.