Owner occupied questions

4 Replies

If I purchased a 3 flat and I'm living in one of the units of a 3 flat, what's stopping me from moving out in 6 months, renting that unit, and then applying for a mortgage with another lender?

I understand the new lender would want to see rental income on that unit I used to live in, so say I rent it out for a year, go rent somewhere myself for a year, then apply for the mortgage, does that work?

Ask you lender! If you can find a lender that is investor friendly, they can help you "house hack".

I think a lot of banks like to see you occupy the property for at least a year... but if you can find a loophole, more power to you!

Only thing stopping you is if somehow your current lender finds out and they had a baseline of 1 year of occupancy or something similar. What the repercussions are is dependent on the contract, but there is a good likelihood of a due on sale being the case. Just talk to some other lenders about what they need to have as proof of rental income and their requirements.