Owner Occupier Loan from a Different State

So I currently work from home for 2 days a week and was in the talks with my manager for a more flexible arrangement before he went on leave.
I just brought a place in my hometown so I can have a more convenient place to stay when I go home. If the talks go well with my manager, I'm hoping to be based out of there during the quiet periods at work, so I can help with the care taker duties for a sick parent.

The mortgage people have asked that I provide evidence that I will be able to work remotely. My acting manager will only provide a letter saying that 'staff are typically expected to be in the office 3 days a week. More flexible arrangements can be made with managers.'
I would argue that 3 days a week is the minority of the week, but my home town is in a different state, a 9hour drive or a flight away. So if I do that, my expenditure estimates would rise and my borrowing capacity would drop…

Has anyone else been in a similar situation? Or know what the typical minimum occupancy is for it to be an owner occupier loan?

Comments

  • Or know what the typical minimum occupancy is for it to be an owner occupier loan?

    As long as the place will be primary place of residence, have it on your driver's licence, as your aec address etc then really that's the key to get a cheaper OO loan rather than an investment loan

    The mortgage people just don't want to miss out on charging you more.

  • but i wouldnt be able to do that until after i settle and i wont be able to settle without a mortgage….

    • You can always switch loan

      • yeah, i might need to look into that, but obviously not ideal, especially if i want to lock in the rates now.

        • But you can't prove to your bank it will be a PPOR.

          In fact, your explanation tells them it will not be a PPOR. You'll just be there sometimes when visiting your sick folks "so [you] can have a more convenient place to stay when [you] go home".

          Even when your bank asks you to support it can be PPOR, you go on a rant about how if you actually switch between two places, your "expenditure estimates would rise and [your] borrowing capacity would drop"

          So your choice is really ask a different bank or take an investment loan.

          • @avoidfullprice: Well it'll still be my primary place of residence actually, the days I have to go to the office i bounce around a few places..
            So I actually end up spending more time in my home town than any other place i stay.
            And I work from home for months at a time, just my acting manager refuses to put this in writing

  • If you are not earning rental income it can be looked at as a second OO residence with an OO loan. You would need to factor in both property expenses and also any estimated travel costs.

  • well apparently holiday homes and empty occupancy homes are no longer allowed to be classified as OO…
    https://www.abc.net.au/news/2019-10-03/home-loan-crackdown-a…

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