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Which lenders do owner occupier rates for investments secured by PPOR

Discussion in 'Property Finance' started by Hockey Monkey, 7th Feb, 2016.

  1. Hockey Monkey

    Hockey Monkey Active Member

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    How common is it for lenders to allow the lower owner occupier rates for an investment loan secured by a PPOR.

    From my personal experience, Bank of Melbourne allow this but CBA do not.

    What is the policy of others?
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    BoM/St George doesn't do this unless the person submitting the application plans to say its for owner occupied reasons.

    Resimac does do this and its one of their niches - I posted about this on another thread whereby they will do 4.19% IO on an owner occupied property w/ investment lending purposes.
     
  3. Redom

    Redom Mortgage Broker Business Member

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    AMP's rates are based on security, not purpose do this. They've also got reasonably sharp rates for O/O lending.

    Extract from a relatively recent email:

    Products : Owner Occupied or Investment?

    We currently determine the type of loan products by the primary security for the loan. For loans with both owner occupied and investment products, we do not mix the different product types. Loans can only comprise all owner occupied loans splits or all investment loan splits. This means that if the owner occupied property is the primary security, all the loan splits under the loan will be owner occupied products or if the investment property is the primary security property then all loan splits will be investment products.
     
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  4. Hockey Monkey

    Hockey Monkey Active Member

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    Interesting. I certainly never said that but will keep my mouth shut.
     
  5. Watson1

    Watson1 Well-Known Member

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    BoM generally pick up owner occupied/investment loans by security which can work out favourably at times.

    However, for instance, if i cash out a separate split for $100k to purchase a new OO property, when their current OO property reverts to an investment, the $100k split I used to cash out to buy a new owner occupied generally reverts to investment rates which means I need to call them up to sort that out.

    There system looks at your postal address and the security to determine rate and since those two loan securities are now against an investment property, they will charge the .25% higher.

    However, a simple call up can fix this but means I need to monitor every loan split.
     
  6. Kirsti327

    Kirsti327 Active Member

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    The credit union i work for does if its p&i
    (Hunter United Credit Union. 4.2%variable/3.98% fixed, max 75% lvr if secured by investment but low rates still available. I don't like self promotion but it is a good rate to be aware of)


    Edited: I went to clarify with my APRA supervisor how cross-collateralised loans are meant to be treated. They have reneged on the advice provided to me in January, and are now saying all borrowing is to be classified based on the purpose of the loan rather than the security. If a loan is of mixed purposes, the ADI is meant to report the proportion that relates to investment purchase in their total investment exposure.
     
    Last edited: 2nd Mar, 2016
  7. euro73

    euro73 Well-Known Member Business Member

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    +1 AMP

    They are very very handy for this. Besides the very good pricing policy on I/O secured against O/Occ security, their free up front val policy and no questions asked cash out policy to 85% is also excellent, and their master limit functionality is especially handy for investors wanting to manage sub accounts more precisely without requiring variations or re-documentation - it is just about the best product in the market in every way, for O/Occ I/O lending where equity release and sub account flexibility is important - the rub? turnaround times at time of application :) Good ol' AMP ... slow slow slow...
     
  8. JameZ

    JameZ Active Member

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    BOQ slow? :p Now their 3.99% investor is coming to an end should hopefully see an improvement in their SLA.

    Liberty is another that bases loans on security rather than purpose. Also the only one taking actuals still as far as I know. They have been getting a lot of love from me lately.
     
  9. euro73

    euro73 Well-Known Member Business Member

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    Qantas CU also takes actuals... but arent on many aggregator panels.

    The options for good rates AND good borrowing capacity are getting very very very slim.
     
  10. jpcashflow

    jpcashflow Well-Known Member Business Member

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    I would never cross the loan just for the sake of a cheap rate.
     
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