Moving out of PPOR and making it investment impact on loan

Discussion in 'Loans & Mortgage Brokers' started by Excalibur1, 27th Jul, 2015.

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  1. Excalibur1

    Excalibur1 Well-Known Member

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    Hi All,

    Just curious if anything will change in this situation...

    If I am to move out of PPOR and make it an investment, do I need to notify the bank as well? At the moment as PPOR i have great rate, but if I make it investment it will be a lot worse rate.

    Anyone else transitioned like this recently? Did you notify the bank? Any impact from ATO?
    I would much rather shut my mouth and not say anything, but not at the risk of doing anything wrong.
     
    Excalibur1, 27th Jul, 2015
    #1
  2. Terry_w

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

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    Probably not. You need to read your loan agreement to find out.
     
    Terry_w, 27th Jul, 2015
    #2
  3. Arashi87

    Arashi87 Well-Known Member

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    +1 I would like to know this as well :D
     
    Arashi87, 27th Jul, 2015
    #3
  4. JonoD

    JonoD Active Member

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    I would think not..... But next time you touch the loan linked to that PPOR for a top-up or equity release it may need to change.
     
    JonoD, 27th Jul, 2015
    #4
  5. jaybean

    jaybean Well-Known Member

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    jaybean, 27th Jul, 2015
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  6. Corey Batt

    Corey Batt Well-Known Member

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    No need to let the lender know, people change property use all the time.
     
    Corey Batt, 27th Jul, 2015
    #6
  7. Excalibur1

    Excalibur1 Well-Known Member

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    Wouldn't then this mean every purchase you make you say to the bank it will be PPOR (assuming you meet serviceability) and then just as everything settles you rent it out... I suppose for every new purchase you would need to get a new lender. The new lender will then look at the purchase as investment property at a really good interest rate.
     
    Excalibur1, 27th Jul, 2015
    #7
  8. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    If you buy interstate, they might want proof of your new employment ;)
     
    Jess Peletier, 27th Jul, 2015
    #8
  9. Corey Batt

    Corey Batt Well-Known Member

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    And you're lying/being deceptive in mortgage applications - not exactly a good idea unless you like committing criminal offences.
     
    Corey Batt, 27th Jul, 2015
    #9
    Jess Peletier likes this.
  10. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    Tax deductibility depends on how the property is used, not the type of loan involved.
     
    Till Kingdom Come, 27th Jul, 2015
    #10
  11. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    mmmmmmm CRIMINALOFFENCES

    [​IMG]
     
    TheSackedWiggle, 27th Jul, 2015
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  12. Excalibur1

    Excalibur1 Well-Known Member

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    Hmmmm....If I really do intend to live in that property, then circumstances change and I make it investment property. Surely they cant do anything about that. Assuming everything is getting paid and paid on time.

    I think it should be more of criminal offence (even though it is not) that the bank set me up with offset account, even though they were not calculating correctly. They never bothered to inform me of that. It was not until I started doing a check that I noticed the variances going back 3 years (yes I had a lot of time on my hands) but spending few hours checking that made them credit my account for $3,400. I didn't even get a sorry for it or we wont charge you a yearly fee. After that I dropped them....
     
    Excalibur1, 27th Jul, 2015
    #12