Questions for the Mortgage Brokers

Hello,

If I buy a house as PPOR & use only 5% deposit, I have to live in the property for at least 12 months, yes?

If 12 months is the required period of time, if I move out after 12 months & rent this property out, does my bank require me to go 90% LVR or can I still remain at 95%? Does the bank require a valuation be conducted at this point to determine this?

If I move out within the required 12 month period, can the bank or government penalise me; ie require me to pay the required stamp duty for investment purposes, etc?

Many thanks.
 
The First home owner's grant and stamp duty exemptions are separate things with different rules. Neither of them have LVR restrictions.
 
Hiya

there are still lenders that will do investment at 95 %.

I suspect you are looking at the comm product whicg distinguishes between IP and PPOR LVR.

No tey would not do a val normally when u move out

ta
rolf
 
The First home owner's grant and stamp duty exemptions are separate things with different rules. Neither of them have LVR restrictions.

Should've qualified my position - I'm not a first home buyer. Looking at keeping existing PPOR & renting out, & buying another property to use as PPOR.
 
Hiya

there are still lenders that will do investment at 95 %.

I suspect you are looking at the comm product whicg distinguishes between IP and PPOR LVR.

No tey would not do a val normally when u move out

ta
rolf

Hi Rolf,

For example, if I got a loan for 95% lend with NAB for example (hypothetical situation), if I moved out & converted to IP loan, would the NAB or that same bank require me to go 90% LVR & therefore put in an extra 5% deposit?

Sorry, not up with the "lingo" - what is comm product?
 
Big Col not a good example as NAB do 95% lvr for its 4 star Brokers but normally answer would be NO lender would not make you reduce the LVR.
 
We did a scenario just like that a month ago. 95% LVR, moving out of PPOR into new one and converting the existing home into an IP.

No real drama involved, we even set it up as an interest only loan.

We did is take an extra day or two to submit to get everything perfect 'cause banks don't like 95% loans. Fortuantely it went off without a hitch.
 
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