Problem getting finance



From: Mojo Jojo

Just wondering if anyone could make my following situation any clearer.

I'm looking at buying a property off the plan and are having a bit of a problem with the banks regarding serviceability. I don't want to miss out on this property so I am prepared to rent it out for a period while living with my parents. This would enable me to get the loan.

Would there be any problems, with the bank, if I were to change my mind in the meantime and move in myself after settlement.
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Reply: 1
From: Rolf Latham


Yes and No

When you make your initial application, it is your INTENT that counts under the consumer credit code.

Id you later change that intent and occupy the premises and subsequently let them know, under most circumstances they wont pull the deal if you have been making payments

Some would say let sleeping dogs lie, it wouldnt be the first time someone didnt understand the conditions of the mortgage contract - I mean after all what exactly is a notifiable "material difference".


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Reply: 2
From: Russell Chellew


Not all lenders use the same capacity to service calculations and your borrowing power will vary between lenders. Its a matter of finding a lender that maximise s your borrowing power. You could well qualify with another lender.

If you are applying for First Home owner grant for this property purchase read on:

I agree that fall back position could be to rent it out and use income to help qualify for loan, however you will have to sign a declaration that loan is for investment purposes.This could jeopodise your eligibility for the First home owners grant for this property as it would be seen as an IP purposes rather than O/Occupy.


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