Owner occupier to landlord

Question from Divya updated on 17th November 2016:

We are looking to buy a house to live in, but may consider renting it if it does not suit our needs. We are in the Auckland area and would appreciate advice on how our home loan may be affected if our owner occupied home becomes a rental. Will we need to meet the LVR investor restrictions even though it's our only property and has previously been owner occupied?



Our expert Kris Pedersen responded:

The banks aren't going to make you reduce your lending to 60% if you move out and rent. However, if you are looking to purchase another owner occupied property you are not going to be able to gear this above 60% if you are advising that it is going to become an investment property.


Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz

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