Are you really an owner-occupier? Or an Investor?

The Australian Prudential Regulatory Authority has warned Australia’s banks and other lenders that too many home loans may be classified wrongly as owner occupier when they are in fact for investment purposes.

RBA deputy governor Philip Lowe said banks had underestimated the value of investor loans by $50 billion, leading one senior economist to question the new rules on investment lending.

The Reserve Bank reported that some borrowers have changed the purpose of their existing loan following the introduction of two-tiered pricing in mid-2015.

Source: Mortgage Business