Will this loop hole work? RE: Homeloan

Discussion in 'Loans & Mortgage Brokers' started by fullylucky, 3rd Sep, 2015.

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  1. fullylucky

    fullylucky Well-Known Member

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    I've almost paid off my homeloan for PPOR.

    as you all aware the investment loan interest rate increased recently....

    So I was thinking is it possible to do this loophole? has anyone tried?

    What if.... you say you moved to the investment property and live there. So that means it's no longer and investment loan. It's PPOR loan.

    Will banks then reduce the interest rate by .27% ?

    Do you understand what I'm saying? o_Oo_Oo_O
     
    fullylucky, 3rd Sep, 2015
    #1
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  2. thatbum

    thatbum Well-Known Member

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    I think you're onto something.

    I just thought of another loan loophole too. If you're capped for serviceability, you can just tell the bank you moved out and now rent out your PPOR for $xxxx/per week. And make up a fake lease agreement to that effect.

    And then the bank will let you borrow more?

    Do you understand what I'm saying? o_Oo_Oo_O
     
    thatbum, 3rd Sep, 2015
    #2
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  3. Kesse

    Kesse Well-Known Member

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    So, basically, commit fraud to save 27 bps? Or are you actually intending to move into the property?

    What about other considerations such as tax etc.
     
    Kesse, 3rd Sep, 2015
    #3
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  4. spludgey

    spludgey Well-Known Member

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    spludgey, 3rd Sep, 2015
    #4
  5. miked

    miked Well-Known Member

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    miked, 3rd Sep, 2015
    #5
  6. wylie

    wylie Moderator Staff Member

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    wylie, 3rd Sep, 2015
    #6
  7. spludgey

    spludgey Well-Known Member

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    Note to self: Learn to read!
     
    spludgey, 3rd Sep, 2015
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  8. miked

    miked Well-Known Member

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    It's OK, this is the Internet. No need to actually read articles!
     
    miked, 3rd Sep, 2015
    #8
  9. fullylucky

    fullylucky Well-Known Member

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    Actually intend.

    Can you help me think through it with regards to the tax?

    Will it be worth it?
     
    fullylucky, 3rd Sep, 2015
    #9
  10. 158

    158 Well-Known Member

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    ^^
    Gets @r$e spanked in jail....but saves on tax.

    pinkboy
     
    158, 3rd Sep, 2015
    #10
  11. tobe

    tobe Well-Known Member

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    If you are actually moving in, it ain't a loophole.
     
    tobe, 3rd Sep, 2015
    #11
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  12. fullylucky

    fullylucky Well-Known Member

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    So has anyone tried contacting their bank and actually doing it?
    Did they reduce the interest rate?
     
    fullylucky, 3rd Sep, 2015
    #12
  13. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I was reading about this very thing earlier this morning. A lot of people actually have moved into an IP and lenders are seeing a lot of people contacting them to get the information straight.

    We've done quite a bit of paperwork in the paperwork with several lenders to get this recognised.

    To the best of my knowledge, in each case it is quite legitimate. Don't try be clever just for the sake of taking your rates back to what they were in February.
     
    Peter_Tersteeg, 3rd Sep, 2015
    #13
  14. Art Vandelay

    Art Vandelay Well-Known Member

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    Tell the Office of State Revenue that it's your PPOR and save on stamp duty as well? Double win!
     
    Art Vandelay, 3rd Sep, 2015
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  15. wylie

    wylie Moderator Staff Member

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    Did you mean "save on land tax"? Stamp duty would already have been paid on purchase so moving in wouldn't make a difference, or am I missing something?
     
    wylie, 3rd Sep, 2015
    #15
    fullylucky likes this.
  16. Art Vandelay

    Art Vandelay Well-Known Member

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    No - you're right Wylie.
    I misread the OP that he was going to buy an IP and claim it was going to be his PPOR in order to get a better rate.
     
    Art Vandelay, 3rd Sep, 2015
    #16
  17. DanW

    DanW Well-Known Member

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    The time spent on trying to reduce your cost - why not spend it on increasing your income? Probably the same payoff, and it wouldn't be a loophole ;)
     
    DanW, 3rd Sep, 2015
    #17
    Esh and 158 like this.
  18. Bran

    Bran Well-Known Member

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    Yes - they will refund. I'm in the process of it. I legitimately bought an IP, but then we decided to move in. Forgot to tell the bank so far.
     
    Bran, 3rd Sep, 2015
    #18
  19. wylie

    wylie Moderator Staff Member

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    Did you ever rent it out? I'm guessing not. Someone in the OSR has a heart???
     
    wylie, 3rd Sep, 2015
    #19
  20. Bran

    Bran Well-Known Member

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    Nope. They weren't fussed, I just told them it was an error on our part. They gave me some paperwork, but I need someone official to sign it, and just haven't got around to it (story of my life).
     
    Bran, 3rd Sep, 2015
    #20
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