Need some helps about transfer home loan to investment loan.

Hi, all.

My PPOR loan rate is currently 2.76% with Suncorp and they start to offer 1.8x% P&I Fixed rate this week. I would like to fix it for a year or two since the rate gap is wide.

Here is the question. I am planning on buying another PPOR in a year or 18 months and turn the current one into investment property. What would happened to the current loan when it is in 2-years fixed P&I period and I have to transfer it to investment loan? Do I need to pay existing fee or penalty for this kind of transition?

Thanks so much

 

There is no real difference from a tax point of view. You would keep the loan as is. There would only be a penalty if you broke the fixed loan period.

 

Thanks Terry