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Forum Mortgage & Finance

Convert investment loan to owner occupier?

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Need some Info | 03 Oct 2019, 12:17 PM Agree 0
Hi, We have 2 properties: Property1 was our PPOR and unencumbered. We purchased Property2 as an investment and rented it out immediately. We then went overseas for 2.5 years and rented out P1 as well.
On our return we moved into P2 because the tenants had left and P1 tenants were still there. Tenants are still in P1 and our PPOR is now P2 with investment mortgage against it. How can we get things the correct way around now without moving back into P1. Any advice? Thank you
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  • Steve Kellaway Mortgage Broker | 04 Oct 2019, 11:27 AM Agree 0
    Hi, simply call the bank and advise them you are now occupying the premises and wish to convert the loan to the best owner occupied rate. Happy to supply a comparison's of owner occupied loans and best way to help you pay the loan off, if you need advice. Steve Kellaway Accredited Finance Broker 0414 822 522
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  • Caroline | 10 Oct 2019, 07:19 PM Agree 0
    Hey,
    I agree with Steve, you can call your bank to change the interest rate for P2, that's a pretty straight forward resolution insofar as your mortgage.

    You should also consider speaking to your current accountant/financial advisor as s/he will be able to assist/guide you with your long term goals with both assets eg. in the event you sell one of your assets (either P1 or P2) the issue with capital gains; the issue of PPOR and tax land.

    Best,
    Caroline
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  • J | 30 Oct 2019, 07:19 AM Agree 0
    Would this require full assessment/reassessment ?
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