What is Owner Occupied Home Loan?

The property market in Australia is on the rise nowadays. However, there are still many people in this country that are searching for a house they can move straight into and make their home. For such home seekers, the option of applying to an owner-occupied home loan can prove to be really beneficial and helpful.   

The owner-occupied home loans are designed for the people who plan to live in the home for which the loan is required. This loan can be used by the borrowers to purchase an existing home, build a new property, or renovate an established one.  

Owner Occupied Loans vs Investment Loans 

There is a huge difference between an owner-occupied home loan and an investment loan. This difference depends entirely upon the intention of how the borrower intends to use the property purchased from the loan. When the borrower buys a house, apartment or flat with the intent of living in it, it is considered as owner occupied property and if the borrower plans to rent/lease or sell the property and turn a profit in a short period, it’s considered as an Investment Property.  

Applying for an owner occupied home loan 

There are many banks and lending institutions that provide owner occupied home loans in Australia. The application process for this loan not much lengthy and the most of the lender approve borrower’s application for the loan easily because they assume that the owners will take better care of the house than the tenants. And since the borrower will be occupying as the owner, it gives lenders greater confidence as the borrower’s business figures will tell them all they need to know about his capacity to meet future repayments. 

The borrowers applying for an owner-occupied home loan in Australia are required to submit copies of the following documents to their lenders:  

• Recent credit card statements 
• Account statements for all home loans and personal loans since for last 6 months 
• Savings and investment history for the last 6 months  
• Copy of the Contract of Sale for the property being purchased 
• Supporting evidence for other funds that are being used to make the purchase 
• A statutory declaration for any fund that is given to borrower to put towards the purchase 

Expert’s Guidance on owner occupied home loans by Your Finance Advisor   

Your Finance Adviser is a reputed and most trusted finance advising company in Australia. It has a team of the best Home loan experts in Australia that specialise in providing home loan advice to people to fulfil their dreams of owning a home in Australia. The expert’s team of Your Finance Adviser will assist and guide you thoroughly about owner occupied home loan rates in Australia and help you in understanding the loan's features and eligibility criteria.      

Ready for the big move? Visit www.yourfinanceadviser.com.au