If you’re buying a home to live in, an owner occupied home loan allows you to borrow the amount you need to purchase an existing home, build a new property or renovate an existing one.

Home ownership is the Great Australian Dream and it’s a big business, with owner occupier loans accounting for the majority of home loan commitments each month according to the Australian Bureau of Statistics (ABS).

An owner occupied home is one you purchase with the intention of living in it. Owner occupied home loans generally have lower interest rates than an investment loan because owner occupiers are seen as a safer bet than an investor. An owner occupied home loan may also have certain terms and conditions that restrict you from renting out the property for a period of time.

The interest rates on owner occupier home loans are generally cheaper than interest rates on investment home loans. That’s because owner occupier borrowers are generally seen as being less risky than an investor.

Owner occupier home loans come with a range of features such as an offset account, redraw or line of credit facility, and the ability to make extra repayments.

Home loans that come with these features are generally more expensive than home loans that don’t offer these. However, most of these features are designed to help you pay your home loan off sooner, which could save you money in the long run.

“That unique smile and sense of relief we see in client’s; and their children’s faces when they get into their first home is what drives us at Vestyn, it’s a wonderful feeling” – Yuan Chong, Operations Manager