Hi there
My mortgage broker told me that if I buy a house for my own use as a first home but which is presently tenanted and will get vacated a few weeks after settlement, even then My loan will be treated in Investors category and I will be required to pay 40% margin.
To be treated as an home owner and give only 20% margin, I can only buy vacant houses which will be handed over to me on settlement date.
No matter how much I argue that I have no other property and the tenant is continuing only because of the fixed period agreement with the present owner, and that I will shift as soon as he vacates a few weeks down the road, the banks will not listen.
Is this correct ?
Thanks for advising
My mortgage broker told me that if I buy a house for my own use as a first home but which is presently tenanted and will get vacated a few weeks after settlement, even then My loan will be treated in Investors category and I will be required to pay 40% margin.
To be treated as an home owner and give only 20% margin, I can only buy vacant houses which will be handed over to me on settlement date.
No matter how much I argue that I have no other property and the tenant is continuing only because of the fixed period agreement with the present owner, and that I will shift as soon as he vacates a few weeks down the road, the banks will not listen.
Is this correct ?
Thanks for advising
Comment