Understanding Owner Occupied Home Loans
An owner-occupied home loan is a type of home loan that is designed for the people who plan to live in the home for which the loan is required for. It is provided by a variety of banks, lenders and credit providers. This type of loan can be used to purchase an existing home, build a new property, or renovate an established one.
The banks and other financial companies approve the applications for owner occupied home loan easily and offer favourable rates on owner occupied home loans because they assume that the owners will take better care of the house than the tenants. And since the borrower will be occupying as the owner, it gives lenders greater confidence as the borrower’s business figures will tell them all they need to know about his capacity to meet future repayments.
In Australia, there is a list of homes that lenders and credit providers consider as acceptable owner-occupied real estate security. These homes are:
- Free-Standing Residential Detached Homes
- Semi-Detached Homes
- Terraced Housing
- Townhouses
- Duplex Homes, and
- Flats (also called "Home Units")
The process of applying to owner occupied home loans in Australia can be quite challenging. This is due to the several types of formalities and applications that are required to be completed by the borrowers. That is why, it is both beneficial and smart for a borrower to seek assistance from a home loan broker. At present, there are several home loans brokers available in Sydney and but as a borrower, you should only select a trusted, experienced and qualified home loan broker.
Experts Advice on owner occupied home loans by Your Finance Advisor
Your Finance Advisor is a reputed finance advising company and Home loan experts of Sydney, Australia. We specialise in providing home loan advice to people to fulfil their dreams of owning a home in Australia. We can guide you in getting the perfect home loan that fits into your budget. Our team will assist and guide you thoroughly about owner occupied home loan rates in Australia and help you in understanding the loan's features and eligibility criteria.
Ready to move to your new house? Contact us at info@yourfinanceadviser.com.au.
