Getting a loan if you are going to be an owner-occupier can be easier than getting other types of loan. That's because if the property you occupy is your main residence, the place you call "home", mortgage lenders consider that it will be looked after better than if you rent it out. They also know that should you default they could sell the property and recover their money.
Compare owner-occupied home loan interest rates
An owner-occupied loan can get you a lower interest rate than an investor loan, as you're more likely to be seen as a more reliable borrower. Compare home loans from a range of lenders to find the right loan for you.
Find and compare owner occupied home loans
Interest Rate
Comparison Rate*
Repayment
5.94%
p.a
Variable
6.26%
p.a
$3,203
monthly
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Product
Variable Rate Home Loan – Refinance Only
Features
special
Receive an extra 0.01% p.a. discount every year, up to a maximum discount of 0.30% p.a.Winner of Best New Lender Home Loan, Best Refinance Home Loan, RateCity Gold Awards 2023
Interest Rate
Comparison Rate*
Repayment
5.74%
p.a
Variable
5.65%
p.a
$3,143
monthly
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Product
Executive Saver Home Loan
Features
special
Refinance before 31st December 2023 to enter the draw for a chance to win $50,000 off your mortgage. T&Cs apply. ~ Ends in 2 monthsInterest Rate
Comparison Rate*
Repayment
5.74%
p.a
Variable
5.78%
p.a
$3,143
monthly
Go to site
Product
Up Home
Features
special
Get $10 when you join Up. Download the app, sign up easily in 3 minutes and use the code: UPHOMERC. T&Cs apply.Interest Rate
Comparison Rate*
Repayment
5.90%
p.a
Variable
5.90%
p.a
$3,191
monthly
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Interest Rate
Comparison Rate*
Repayment
5.72%
p.a
Variable
5.87%
p.a
$3,136
monthly
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Interest Rate
Comparison Rate*
Repayment
5.95%
p.a
Variable
5.97%
p.a
$3,206
monthly
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Product
Basic Home Loan
Features
Cashback
Receive $2000 in cashback when you refinance. T&Cs apply.Interest Rate
Comparison Rate*
Repayment
6.04%
p.a
Variable
6.05%
p.a
$3,234
monthly
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Interest Rate
Comparison Rate*
Repayment
5.79%
p.a
Variable
5.81%
p.a
$3,158
monthly
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Interest Rate
Comparison Rate*
Repayment
5.89%
p.a
Variable
6.14%
p.a
$3,188
monthly
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Interest Rate
Comparison Rate*
Repayment
5.99%
p.a
Variable
6.05%
p.a
$3,218
monthly
Go to site
Product
Up Home
Features
special
Get $10 when you join Up. Download the app, sign up easily in 3 minutes and use the code: UPHOMERC. T&Cs apply.Interest Rate
Comparison Rate*
Repayment
6.00%
p.a
Fixed - 2 years
5.92%
p.a
$3,222
monthly
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Interest Rate
Comparison Rate*
Repayment
6.09%
p.a
Fixed - 3 years
6.30%
p.a
$3,249
monthly
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Product
Simplicity Plus Loan
Features
Cashback
$2,000 cashback when you refinance an eligible home loan.Interest Rate
Comparison Rate*
Repayment
6.89%
p.a
Variable
6.89%
p.a
$3,499
monthly
Go to site
Product
Fixed Rate Loan
Features
Cashback
$2,000 cashback when you refinance an eligible home loan.Interest Rate
Comparison Rate*
Repayment
6.29%
p.a
Fixed - 2 years
7.01%
p.a
$3,311
monthly
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Interest Rate
Comparison Rate*
Repayment
6.99%
p.a
Variable
7.06%
p.a
$3,531
monthly
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Product
Fixed Rate Loan
Features
Cashback
$2,000 cashback when you refinance an eligible home loan.Interest Rate
Comparison Rate*
Repayment
6.59%
p.a
Fixed - 2 years
7.07%
p.a
$2,746
monthly
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Interest Rate
Comparison Rate*
Repayment
6.84%
p.a
Fixed - 4 years
8.03%
p.a
$3,483
monthly
Go to site
Interest Rate
Comparison Rate*
Repayment
6.94%
p.a
Fixed - 4 years
8.08%
p.a
$2,892
monthly
Go to site
What is an owner occupied home?
The term "owner occupied" relates to a property that you use primarily for yourself. When you seek to buy such a property, a mortgage lender may give you a more favourable loan interest rate. The lender could also offer better lending terms because they believe that an owner-occupier is a safer bet in terms of wear and tear on the property. If you want a loan for a primary residence but don't plan to live there, it is likely that many mortgage lenders will be unwilling to give you a loan. There might be specific terms and conditions attached to an owner-occupier loan that may prevent you from renting the property out, at least for a period of time. Always check those terms and conditions carefully.
What are the requirements for owner-occupied loans?
It's not always the case, but most lenders will loan on the condition that you don't rent out what they consider to be your primary residence. Mortgage rules vary from company to company, so finding out what a lender will or will not allow is essential when you're searching for loans. A lender that may allow you to rent out your property may also charge you a higher interest rate. Do your mortgage loan calculations carefully, and search the market to see if some companies are offering special deals for a period with a fixed interest rate. You could save yourself a considerable amount of money, and a fixed rate means that you can plan your finances knowing that for a certain amount of time, you won't get an increase in your monthly payment. Remember that if interest rates go down during this period, you won't benefit from a reduction in your payments.
How do you get lender permission?
The best approach is to be upfront with your lender about what you plan to do. If you do plan to let out what the mortgage holder considers to be your main residence, communicate your ideas and check the small print to see if you can do this. It's not uncommon to rent out a property, but if you have a loan on it, your lender will want to be certain that scheduled repayments will continue.
Can you get another mortgage?
There's no reason why not, but your mortgage lender may or may not consider your rented out property as income for qualification for a new mortgage. You'll need to prove that you can afford two mortgages.
When looking for an owner occupied loan, do some thorough research as to the options available before you make a final decision.