Hey guys
Im currently in Sydney and have just purchased a property as an owner occupier in Brisbane but a change in situation means I'll be unable to move into the property for another 6months. If I rent it out first for 6months and then make the permenant move into the property as an owner occupier straight after, do I need to change my loan type to investment and then back to owner occupier within 6months?
Does the process of changing the loan from an investment loan to owner occupied loan involve a whole new loan application ie. Refinance? Or is it just a simple phone call to the bank?
Also will this affect my FHOG that I've already received? Considering I'll still be moving back into the property permenantly within the 12month requirement?
All responses much appreciated
Legally you should be advising the bank as the actual use of the loan funds is different than what was applied for. I think that their letter of offer advise you to notify them if the circumstances have changes.
That would probably mean a higher rate considering the current rate climate.
As for changing it back down the track, all depends on the lender and what their policy is. Might be as easy as a form or not.
In terms of FHOG, as far as I'm aware as long as you move in within the year and live for the minimum specified period you should be okay.
The other thing to think of is stamp duty. There are different figures for each (investment costing more), the government needs their share.
And finally you will up for Capital Gains tax of some form if you ever sell down the track.
Cheers
Tom