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What happens if you bought your PPOR house as an investment; and now they have jacked up the interest rate on it?
Topic Started: 21 Aug 2015, 03:10 PM (955 Views)
peter fraser
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What happens if you bought your PPOR house as an investment, and now they have jacked up the interest rate on it.

The answer is incredibly simple. You call them, tell them that you occupy the house as your principal place of residence, and they will change it back to the lower rate of interest. While you are at it ask them for a rate discount, and ask them to match a better rate that you can find on the internet.

Of course there is a simple form and a signature involved.

If you used a broker they can do all of this for you. Just ask and ye shall receive.

Some banks may have different policies, but so far they are accommodating the requests.
Edited by peter fraser, 21 Aug 2015, 03:11 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
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ThePauk
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For an interest only, line of credit loan as well? Mmmmm.....
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Ex BP Golly
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No problems re: capital gains tax, or obtain benefit by deception etc.

All easy Pirate Pete?
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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peter fraser
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Ex BP Golly
21 Aug 2015, 03:48 PM
No problems re: capital gains tax, or obtain benefit by deception etc.

All easy Pirate Pete?
Was only talking about the 0.27% increase in the rate for investor loans. Not CGT etc.

Quite a few people buy their next PPOR as an investment home until they sell their existing house and move into the next home. Until now there hasn't been any difference so no one worried about the "investment" tag on their home loan. But things have changed and people who legitimately reside in a house can get the full benefit of the lower rate to which they are entitled. APRA is not trying to curb lending to homeowners, only investors.

If however you are talking about genuine investment houses being changed to a PPOR tag then that would be dishonest, and I'm sure that no one here would be dishonest. However if someone was not completely honest, they would need to have their postal address listed as a PO box and preferably select the e-statement option that many banks offer as an option instead of having them mailed. No bank is going to hire a team of private investigators, they will accept their clients declarations.

But of course that will never happen here, because none of us would ever be less than honest.

I'm sure that home loans granted for PPOR homes that have since become investment properties can similarly be converted to higher rate investment loans by their owners. I'm sure there will be a stampede of investors contacting their banks and asking them to charge them a higher rate of interest.
Any expressed market opinion is my own and is not to be taken as financial advice
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herbie
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peter fraser
21 Aug 2015, 06:10 PM
I'm sure that home loans granted for PPOR homes that have since become investment properties can similarly be converted to higher rate investment loans by their owners. I'm sure there will be a stampede of investors contacting their banks and asking them to charge them a higher rate of interest.
THAT'S not 'fair' - All those dirty rotten stinking thieving filthy conniving cheating low life scum 'baby boomers' got the same interest rates on their IPs as home owners - How come 'WE' cant'!?! LOL
Edited by herbie, 21 Aug 2015, 06:19 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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