i already have owner occupied loan and looking for second one. Can I apply owner occupied loan? I am going to live in second home. Do I need to change first loan to investment then apply for second one? Please advise
Can I have 2 owner occupied loan?
Jayson12 on 08/04/2021 - 16:58
Comments
With a mail redirection if the first address is becoming an investment property.
Only if you cut yourself down the middle.
He just needs to locate Salazar Slytherin's locket…
Next Christopher Skase perhaps?
I was thinking more of an Alan Bond
same same…
Well, Bondy was a WA boi.
What did the bank, loan institution, broker or financial advisors say?
Bank would give you the right answer, here we joke or troll, this can be more exciting for some.
I have not checked with Bank as of now. Can I change that later when I move to new home?
I have not checked with Bank as of now.
Why not?
Can I have 2 owner occupied loan
No.
Thread closed.
You're wrong. I have 2 owner occupier loans with different banks.
Thread opened.
Do they know about each other?
Do they need to? Do you feel the need to update the bank on all your financial details?
Why not 10,000 and start a home empire.
as long as you can afford both loans with no rental income no problem
You can if your second home is a holiday house.
u can have one for the mistress
How many yachts can you water-ski behind? How much is enough?
Wall Street (1987)Yes.
I have 2 with same bank.
Yes you can as long as you can provide strong and solid justification that you can easily service the loan.
Yes you can, you are under no legal obligation to inform your bank that you are buying another house to be your next home, hence keeping your old loan classification. You might need to get another bank. Our home loan lender did not care that we applied to refinance our previous home and finance a new home ( both owner occupied classification) at the same time under the same loan package.
Disadvantage you can’t change providers without changing to investment loan. You might be stuck w uncompetitive rates or force to reclassify to investment
TLDR
We have 2 owner occupied loans with same major bank
As others have said its possible, just get your 2nd loan at a different bank.
The original bank doesnt need to know you no longer reside at the address. They will make you change it if you try to refinance though.
Easiest way is to do the second one through a different bank, and there's no requirement to inform your existing bank that the purpose of your loan has changed. If you do it with the same bank they may ask questions and may change the original loan to an investment loan.
Wouldn't the mortgage on the first home come up on the initial check anyway?
Yes but Bank #2 doesn't need to know if you are on an investor or owner-occupied interest rate at Bank #1.
Techniqually i think you can - loans are given for a purposes
You may have issues claiming ductions on the interest if one of the properties is used for a investment reason
im not an accountant so maybe ask them
When you have another property as owner occupy then you need to show enough cash flow to justify that you can service both loan.
Also you cannot take rent income from 2nd owner occupy loan to justify that you can service the loan. The interest saving is very small so avoid it if you can.
Are they on two different properties? If so, it sounds like intent to obtain a financial benefit via dishonesty - claiming to tax-free principal places of residence maybe? This is commonly known as fraud. In that case, you can certainly do it, but you certainly shouldn't.
There are minimum periods for you to be an owner-occupier to qualify for some of the stamp duty reductions or grants that are applicable.
If you have utilised any of these 'owner occupier' qualified benefits then you may need to pay back significant amounts of the benefits if you will no longer be the owner/occupier within that period.
For Vic FHOG you must reside for a continuous period of 6 months within the first 12 months of ownership (if you don't do that, you need to pay back the grant).
For Vic PPR (Principal Place of Residence) concession, you must reside for a continuous period of 12 months, with the commencement of your residence being within the first 12 months of ownership (you may have additional stamp duty obligations if you don't do that).On purely the lender front, they will typically reduce the allocated asset value allowed to be contributed against the LVR of the property (since an investment property is considered less reliable as security against a loan). You also will want to check your lender contracts, often the contract you have already signed will have provisions which require you to give a mortgage over your second property for the loan against your first property (and vice-versa).. this may reduce your ability to find a lender for the second property (at least a lender that is different from that for your first property).
Just pay the land tax..
Better if each loan is at different banks.