Changing from Owner Occupied to Investment during Fix Rate period

Hi all,

I'm wondering, if someone buys as an Owner Occupier and after year 1 decides to rent it out as an investment, how does that work with the fixed rate?

Do they need to tell the bank, and if they do will they need to break the fixed term and be moved to an investment product etc?

Is there a period you can effectively treat an owner occupier home like an investment for a short period?



  • Speak to your loan broker or bank's lending staff. Pretty sure that you need to inform the bank as you are changing the conditions that the loan has been agreed upon.

  • The only time you'll run into any issue whatsoever is if you want to buy another property while the current loan is still in play, but you can cross that bridge if/when you get to it.

    So far as the bank is concerned, so long as you are paying off the loan in line with the contract they (a) won't give a monkey's and (b) more importantly, won't be any the wiser in any event.

    • 100% agree. No point telling the bank.
      Only time it matters is if you need to declare the rental income for another loan, in which case choose a different lender so you don't have to.

  • I have done similar- no issues not telling bank for years after.

  • Same, if the bank ask don't lie. Equally don't offer them anything they don't ask for

  • I agree with the others. Just don’t tell your bank. As long as you keep making your repayments they will be happy.

    • You cannot hide it from them, they will obviously come to know when there is a credit check. There is a borderline for banks, I think above 50k and it will show up on your credit check to the nearest dollar what you have borrowed. Be cautious and carefull mate.

      • What are you talking about? The question is whether OP should change his loan from owner occupied to an investment loan when he moves out. This has nothing to do with disclosing your loan to another bank.

  • More importantly, you should get a formal price evaluation done to rebaseline the value of the property, so when you sell in the future, your CGT is calculated from the value of the property from when you rent it out, rather than when you bought it.

    • 👍👍👍

    • Are you able to ELI5 this please. I’ve recently purchased a property with my partner that we plan on renting out after a year or two (moving eventually with work). Someone told my partner we should revalue the property as soon as possible, even prior to renting it out as it helps with something like CGT but she wasn’t sure and couldn’t really repeat what she was told to me so that I could make sense of it either.

  • There’s a penalty if you don’t tell the bank and even jail time.