Hi
Are there any requirements from the ATO in order for me to maintain a second owner occupied home loan from my bank? For example, do I need to live in it for a certain amount of time during the year and can I rent it to mum for NO profit?
I currently have 2 properties one is my PPR and another an investment.
I am contemplating purchasing a third property initially for my mum to live in and ultimately for me to retire in when I retire in many many many years to come.
The third property is a small house and is quite cheap. My bank advised given this and my current finances I could have the third home loan as a secondary owner occupied which will provide a lower interest rate.
I was not aware of this and it seems attractive.
My mum will pay rent but only whatever the mortgage repayments are. I will pay the rates and other household related expenses (renovations / maintenance etc).
Mum has asked for a formal rental agreement to help with her pension (albeit the low rent).
I am unsure of any requirements to be eligible for a second home owner occupier as suggested by my bank?
Any information would be greatly appreciated.
Thanks in advance!
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