Hi all,
I'm looking to buy my first property this year, a unit in Sydney to use as a PPOR.
I've been reading the forum for a while, but haven't seen this topic come up:
The advertised interest rates on IP loans are higher than on PPOR loans, generally. So how to the banks ensure that punters don't buy property as a "PPOR" (using the lower rate loan) then rent it out as an IP?
Apart from the moral issues involved (and risk of committing fraud), it seems like a no-brainer for the investor.......
Thanks in advance.
I'm looking to buy my first property this year, a unit in Sydney to use as a PPOR.
I've been reading the forum for a while, but haven't seen this topic come up:
The advertised interest rates on IP loans are higher than on PPOR loans, generally. So how to the banks ensure that punters don't buy property as a "PPOR" (using the lower rate loan) then rent it out as an IP?
Apart from the moral issues involved (and risk of committing fraud), it seems like a no-brainer for the investor.......
Thanks in advance.