Home loan or investment loan?

Discussion in 'Loans & Mortgage Brokers' started by Nimble, 8th Nov, 2015.

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  1. Nimble

    Nimble Well-Known Member

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    I was originally building a PPOR but it turned into an IP as I had to relocate interstate for work. I have a home loan but don't know if I am supposed to turn it into an investment loan? I spoke to 2 different people from my bank when doing progress payments and one didn't give a straight answer whilst the other said to stick with home loan so I pay less. I am very much in favor of paying less and not switching to an investment loan but will I get in trouble?
     
    Nimble, 8th Nov, 2015
    #1
  2. Terry_w

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

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    Doesn't matter too much, ideally it should be interest only.
     
    Terry_w, 8th Nov, 2015
    #2
  3. Greyghost

    Greyghost Well-Known Member

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    As Terry said, but tell the bank it is home loan not investment, get the better rate, they are pretty lax with working out it's not..
     
    Greyghost, 8th Nov, 2015
    #3
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Don't talk to banks, you need a broker who's on top of your current situation and planned destination
     
    D.T., 8th Nov, 2015
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  5. Redom

    Redom Mortgage Broker Business Plus Member

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    You wont get into any trouble and there shouldnt be a tax implication associated with the classification of your loan.

    Looking at this months home loan data there'd be plenty of this going on - plenty are reclassifying their loans (motivated by lower rate).
     
    Redom, 8th Nov, 2015
    #5