Common use of Loan Type Clause in Contracts

Loan Type. If you have a home loan or a construction loan, your loan type is stated in the Schedule as being either ‘personal’ or ‘investment’. If your loan type is ‘personal’ this means that you are an owner-occupier of the residential dwelling that is the subject of your loan. If your loan type is ‘investment’ this means that you are not an owner-occupier. You can apply to switch your loan type for your home loan or construction loan from a ‘personal’ loan to an ‘investment’ loan or vice versa at any time (including after the first loan advance) by applying in writing and paying the switching fee. While your loan type is ‘personal’ you must not rent the residential dwelling out or allow anyone to live in it without you, unless we have first agreed. If we agree to this, or if we determine that you’re no longer living there, we can require you to switch your loan type from ‘personal’ to ‘investment’. The same applies if your loan type is ‘investment’ and we identify that you’re no longer using the property for investment purposes. When you switch loan type, the annual percentage rate applying to your loan changes to the rate applicable to the loan type you have switched to. When you switch loan type, any discounts end unless we agree to a new discount.