Owner Occupied Home Loans

Did you know that getting an owner occupied home loan is more accessible than getting other types of loans? That’s because if the property you occupy is your primary residence, the place you call ‘home sweet home’, lenders will consider the fact that your property will be looked after compared to renting it out. If you default, a lender will also know they can sell the property and recover the money over time. With this type of loan, you can get a lower interest rate and be seen as a more reliable borrower. 

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What are the requirements for owner-occupied home loans?

This varies depending on your choice of lender. Sometimes, lenders will loan an owner-occupied home on the condition that you don’t rent out what they consider your primary residence. 

Mortgage rules and owner occupied home loan rates vary from company to company, so it’s better to shop around first and do your research before committing to a decision. Ensure you do your mortgage loan calculations carefully, search the market to see if some companies offer special deals. Do your mortgage loan calculations carefully, and explore the market to see if some companies offer special deals for switching investment loans for owner occupied and for a period with a fixed interest rate. Doing so could save you considerable costs, and a set rate ensures you can plan your finances accordingly, knowing you won’t get an increase in your monthly repayments. 

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Owner-occupied home loans vs investment loans

The big difference between these two mortgages comes down to what you want to do with them. If you’re buying an existing property or apartment and intend to live in it, it’s called an owner occupied property. If you plan on renting it to tenants or flip it, then it’s an investment property. 

Some people choose to live in their properties before renting them out, such as when their financial situation allows them to transition or their careers urge them to relocate elsewhere. Meanwhile, others purchase a property, rent it out and move in themselves on a later date. The bonus is that owner occupier rates are often lower than investment loan interest rates with an owner-occupied home loan. If you are looking to refinance your mortgage as an owner occupied home loan, you will need to live in the property for a set period before making the transition. You will also need to inform your lender.

How do you tell your lender? The best way is to be upfront on what you plan to do with your property. If you consider it your new primary residence, communicate your ideas and check the small print of your current loan product to see if you can do this. 

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Getting another mortgage with an owner occupied home loan

While there’s no reason not to, your mortgage lender may not always consider your rented property as income to qualify for a new mortgage. You need to be able to prove that you can afford two mortgages at the same time. While looking for an owner occupied loan, we can help you research the options available before committing to the final decision. 

As your financial advisors and experienced mortgage brokers, we can help you obtain a clearer understanding of the requirements for this particular type of loan. We’ll mediate with lenders on your behalf, ask the right questions, learn everything about your lifestyle and your loan goals, so we find the right loan product the first time around. At Rateseeker, you’ll reap the benefits of: 

• Accessible, prompt service
• Reliable support team of licenced mortgage brokers
• Collective experience of more than 20+ years
• Communicate with you via phone, email, online chat so you have access to us at all times
• Clear, concise and transparent communication

Ready to work with us? Don’t hesitate to reach out today.