What an Australian Need to Know About Owner Occupied Home Loan

The Australian economy is recovering from extreme recession due to last year pandemic. As a consequence, the property market is on the rise. But still, many people are living in the country searching for a house so, they can move straight into and make their home. When it comes to getting a residence for living in it, choosing an option of owner-occupied home loans proves to be beneficial in current times.  

What is an owner-occupied home loan?  

The owner-occupied loan is one of the most common home loans options. However, the key difference between this loan and others is its sole purpose. It is a type of loan often used by people to purchase a residential home, renovate an existing home, and build a new property.   

In Australia, getting a home loan as an owner-occupant is easier than applying for any other type of mortgage. Lenders generally approve this type of loan because they know the person getting the loan may live in the place and doesn’t rent it out. It means the possibility of recovering money from the property is more.   

How owner-occupied loan works?  

When applying for a home loan, lenders always ask about the purpose of getting this loan. A few types of home loans in Australia are only accessible to owner-occupants, not to investors. So, it requires doing mortgage calculations carefully to secure a loan. Therefore, choosing the best home loan broker is a great way to plan finances as per need.  

The prime criteria of many lenders while approving the home loan application is that the applicant must occupy the property as his/her resident and doesn’t use it for other purposes. In general, to be an owner-occupant, he/she must move into the property within 60 days and live there for a year to become proper resident.  

Owner-Occupied Loans for first-time buyers  

The Owner-occupied loan is quite similar to investment loans. However, in this loan, specific needs differ from person to person. For instance, the investor may like to get a loan with interest-only repayments, whereas owner-occupants want low-interest rates. Therefore, First-time home buyers with a low deposit could look into an option with a higher LVR.  Anz home loan guarantor scheme ensures home buyers' eligibility by asking their parents to serve as guarantors.  

Conclusion  

Owner-occupied mortgages are one of the immense rising home loans in Australia. While thinking of getting an owner-occupied loan, it is suggested to do thorough research before making a final decision. When it comes to securing home loans, consult Mr Rohit Khatak, leading home loan broker Hunters Hill, he has helped many Aussies to get the best mortgage deal.  

Your Finance Adviser is a well-recognized and most trusted finance advising company in Australia. It has a dedicated team of loan experts specialising in offering consultation to people to fulfil their dreams of attaining a home in Australia. Contact Your finance Adviser’s team today to get detailed information on securing home loans in Australia.