Hi All, both my broker and even the property tax accountant have said that for my first IP. I can say intend is to live or move in the property. hence getting cheaper P&I variable rate on that loan.. will that be ok - are there any major issues going down that way.
Do both usually practice in law ? Accountants shouldnt give credit advice either. Or offer advice on misrepresenting truth ? What may the lender do if they think its not true ?
If you're applying for any of the first home owners benefits and don't move into the property to at least meet the minimum residency requirements, you'll likely get caught. This can lead to paying back any money, plus fines, plus potential criminal charges. If you're not applying for first home owners benefits, you're probably going to eliminate yourself from those benefits in the future. I believe these people are encouraging you to commit fraud. I don't think I'd do this for a slightly cheaper interest rate.
Are you intending to move into the property? If it's currently rented - and you actually will move into it then no probs with applying for owner occ. If it's an IP - and will continue to be an IP then you should apply for an IP loan. Cheers Jamie
it will be fine as long as you expect other people that provide you goods and services or income to keep up their side of the bargain while you dont, that does work some of the time. As has been alluded to already, you will be in breach of your mortgage loan contract, but more importantly you may end up in conflict with yourself over this, your conscience already has doubt, which is why you are asking the question. Further id be concerned about taking paid advice from people that say its OK, im sure your broker and accountant wouldnt like to not be paid to be paid for their work.............., so why recommend such a strategy to a client ? ta rolf
