Has anyone told lenders that they were going to stay in the property just to get the low interest rates and they don’t really stay there or stay there for a short period of time?
Joseph
I’d say it’s happened many times without problem..
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
What low interest rates? Investing and owner occ are the same these days.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
hmmn I thought there was a difference? maybe not in rates but in the *other* things in contracts for loans…maybe it has changed since I got my IP loans.
Insurances, are stamp duty fees different (on loans)
They definietly asked me if it was owner occupied! And insurances will too. be careful.
the answer is yes, it is common practice, but the bank told me they dont care once the loan has been approved. Situations change….
cheers
Elves
there used to be different rates but no longer.
Stamp duties are controlled by state governments not the banks.
The difference now is that if the loan is for personal use it is regulated under the UCCC (Uniform Consumer Credit Code).
There is a greater degree of protection afforded to loans for personal use. This covers the whole range of lending including store cards, car loans, homeloans etc.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Joseph,
The only thing that would be different is land tax, which doesnt apply to personal residences.
However, it wont be too long before it catches up with the property owner.
David Femia
http://www.femiapropertygroup.com.auAs Simon says, and last time I checked, interest rates are the same for owner occupied and investment properties.
Stamp duty on loan docs and land transfers is the same regardless of whether the property is owner occupied.
Insurance may be different. But why would the bank care as long as you’ve got a valid policy?
The only thing I can think of which is different is land tax. You don’t pay land tax on your owner occupied IP (as long as it’s in your name). However, declaring a place as your PPOR and not living in it to avoid paying land tax is fraudulent.
Cheers
Elysium-MDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
correct, and investment properties like Simon says do not offer you protection under the consumer credit code.
Guys,
Here in USA, CA., owner occupied requires less down. IPs require more. I haven’t seen a lender that will go as low as an owner occupied down payment.Okay, i re-read my post and it says interest rates. And yes, the interest rates are almost the same. The rates for IPs are a bit higher but not much.
So I guess I should say, “Has anyone told lenders that they were going to stay in the property just to get the low down payment and they don’t really stay there or stay there for a short period of time?
Joseph_prop
Joseph,
This is very much an Australian site and we may not be experts in the American investment market.
Some banks here will only allow a IP to be bought on a 10% deposit whereas they allow a PPOR on a 5%. But many banks allow the 5% deposit for IPs so it has ne real impact.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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