About Owner Occupied Home Loans
to live in, an owner occupied home loan allows you to borrow the amount you need to purchase an existing home, build a new property or renovate an existing one.
Home ownership is the Great Australian Dream and it’s a big business, with owner occupier loans accounting for the majority of home loan commitments each month according to the Australian Bureau of Statistics (ABS).
What is an owner occupied home?
As the name implies, an owner occupied home is one you purchase with the intention of living in it. Owner occupied home loans generally have
than investment loans because owner occupiers are seen as a safer bet than an investor. An owner occupied home loan may also have certain terms and conditions
that restrict you from renting out the property for a period of time.
How can you save money on an owner occupied home loan?
There are a few key ways you can save on your owner occupied home loan:
Owner occupier home loan interest rates
The interest rates on owner occupier home loans are generally cheaper than interest rates on investment home loans. That’s because owner occupier borrowers are generally seen as being less risky than an investor.
Interest rates on owner occupier home loans are currently at record lows, with most below 3% p.a.
Owner occupier home loan fees
If you’re not careful, fees on an owner occupier home loan can sting you. These fees include:
- Upfront fees
- Ongoing fees
- Exit/break fees
Owner occupier home loan features
Owner occupier home loans come with a range of features such as an
account, redraw or line of credit facility
, and the ability to make extra repayments.
Home loans that come with these features are generally more expensive than home loans that don’t offer these. However, most of these features are designed to help you pay your home loan off sooner, which could save you money in the long run.