About Owner Occupied Home Loans

If you’re buying a home 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 lower interest rates 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.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
LIMITED TIME OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
FREE REDRAW FACILITY
  • No application fee
  • Unlimited additional repayments
  • Unlimited free redraw
  • Optional 100% offset can be added for $120 p.a.^
  • Application completely online
FREE REDRAW FACILITY
Variable
More details
REFINANCE ONLY
  • A low-rate variable investment home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY
Variable
More details
NO ONGOING FEES
  • A low-rate variable investment home loan from a 100% online lender. Backed by the Commonwealth Bank.
NO ONGOING FEES

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 27, 2022.

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 offset 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.

Frequently Asked Questions

There are a few key ways you can save on your owner occupied home loan:

No, if you want to purchase an investment property, you’ll need to take out an investor home loan. If you have an owner occupied home loan, this infers that the property is owner occupied. Meaning that you must live in the home. If you have an investment property, you aren’t living in it, and it therefore isn’t owner occupied.

No, you can’t have more than one owner occupied home loan. This is because it must only be used for your PPOR, which you can only have one of. If you don’t live in the home, it means it isn’t owner occupied. If you want to buy another property, you will need to purchase it with an investor home loan as it would be classified as an investment property.

An owner occupied mortgage is used to buy a home that you will live in. An owner occupied home loan must be used for your primary place of residence (PPOR), which means the home that you live in.

There are a few key advantages. Typically, owner occupied home loans will have lower interest rates than investor home loans. There are also generally more options to choose from, which can help you find a loan most suitable to your needs.

Additionally, you may be able to buy with a lower deposit depending on which lender you’re looking to borrow through. You may also be eligible for government schemes and assistance if you’re a first home buyer.

Home Loan Lenders

Nano Digital Home Loans loans.com.au Home Loans NAB Home Loans homeloans.com.au Home Loans IMB Bank Home Loans Westpac Home Loans Macquarie Home Loans Commonwealth Bank Home Loans ANZ Home Loans Suncorp Home Loans Bank of Melbourne Home Loans Bank Australia Home Loans
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