Owner Occupier Loans

What is an Owner Occupier Loan?

An owner-occupier loan is designed for purchasing a home that you intend to live in as your primary residence. This differs from an investment property loan, which is used to buy a property intended for rental income.

Can You Get a Lower Interest Rate with an Owner-Occupier Loan?

Yes. Lenders typically offer lower interest rates for owner-occupier loans because these loans are considered less risky compared to investment property loans. This means you can benefit from more favourable terms and save money over the life of your loan.

Can You Rent Out a Property Purchased with an Owner-Occupier Loan?

If you decide to rent out your home, you must inform your lender. In most cases, your loan will need to be restructured as an investment loan, which may come with different terms and interest rates.

Can You Claim Interest on an Owner-Occupier Home Loan in Australia?

No, you cannot claim a tax deduction for the interest on your owner-occupier loan, as it’s considered personal interest. However, if you use part of your home for business or rental purposes, you may be eligible to claim a deduction for the portion of interest related to that use.

It’s important to consult a tax professional to fully understand the tax implications of your home loan and determine if you’re eligible for any deductions.