In response to rising interest rates on investment loans, banks are reporting an increase in customers changing their investor home loan to owner-occupied, according to an article in the Sydney Morning Herald last year, and in my experience, this trend continues.
As investors rates are now higher than owner-occupiers for the first time since the 1990s those who are living in properties that they may have rented out previously are taking steps to ensure they are being recognised as owner-occupiers.
Yellow Brick Road mortgage broker David Ryman warns some borrowers in this situation may be caught out if they don't alert their bank to the change.
"People are very dormant in relation to their finances. When changes like this happen, most people don't even know what interest rate they are paying, let alone whether they should be on a different type of rate," Ryman said.
"There would be plenty of people who are unaware of the change and are basically sitting on a rate that's higher than it should be." Did you know you can occasionally reduce your interest rate and not even change lender........ ask us how at FulcrumFinance.com.au
Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker with Fulcrum Finance being an excellent place to start.
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