Found lots of people start to shift investment property loan into home loan

Discussion in 'Loans & Mortgage Brokers' started by paper, 30th Jul, 2015.

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  1. paper

    paper Well-Known Member

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    Due to the interest, lots of investors request to change the loan status from investment into home loan.

    Some even swift to different banks to make sure such change can be done asap. Some claim 1st property is for himself to 'live in", another property is for herself (wife) to "live in", the 3rd one is their son's 'home loan' although son could be just an infant...

    What can their banks and ATO do for such change?
     
    paper, 30th Jul, 2015
    #1
  2. Greyghost

    Greyghost Well-Known Member

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    Nothing to do with ato.
    Really just the investor swindling the bank into giving them a better rate...
    (Assuming already purchased as an IP)
     
    Greyghost, 30th Jul, 2015
    #2
  3. Kael

    Kael Well-Known Member

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    I never understood how someone could have three PPOR's... Wouldn't it seem silly when the bank looks at it? (Unless of course you split it up to one loan per bank)
     
    Kael, 30th Jul, 2015
    #3
  4. wombat777

    wombat777 Well-Known Member

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    Are there any T's and C's in PPOR home loans that could cause a breach of contract if property is offered for lease? Maybe LMI conditions?

    Worse still, could it mean you breach loan conditions and bank pulls property out from under you???
     
    wombat777, 30th Jul, 2015
    #4
  5. Tony Fleming

    Tony Fleming Well-Known Member

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    I really couldn't see them investigating it further especially at a branch level as if they would care. Just switch to estatements and split your loans between banks
     
    Tony Fleming, 30th Jul, 2015
    #5
  6. 380

    380 Well-Known Member

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    Servicing loans without showing rental income can be issue, wouldn't it?
     
    380, 31st Jul, 2015
    #6
  7. Art Vandelay

    Art Vandelay Well-Known Member

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    Shouldn't be a problem if you can keep the web of lies up.. Bank 1 has PPOR Loan 1 against Property 1.
    Bank 2 has PPOR Loan 2 against Property 2, knowing Bank 1 has IP Loan 1 against Property 1, and considers rental income.
    Etc.
    So each new bank thinks all other loans are IP's, thus considering the associated rental incomes.
     
    Art Vandelay, 31st Jul, 2015
    #7
  8. 380

    380 Well-Known Member

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    Rather pay extra surcharge of .25% or whatever that may be.

    Charge more rent where possible.
    Claim more negative gearing benifit (if available)
    Look at way to increase Return

    Then false declaration to lender!
     
    380, 31st Jul, 2015
    #8
  9. Art Vandelay

    Art Vandelay Well-Known Member

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    Totally agree with you on that!
     
    Art Vandelay, 31st Jul, 2015
    #9
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    life has a way of equalising such things ..................

    ta
    rolf
     
    Rolf Latham, 31st Jul, 2015
    #10
  11. Doraemon

    Doraemon Active Member

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    Lol ArtVan's reply is just so creative
     
    Doraemon, 31st Jul, 2015
    #11