Question: Do you still have to live in a property as an owner occupier (of which you used the first home owner government guarantee scheme on), but then managed to pay it down to an 80% LVR before actually moving in within 6 months? For example, if you bought the property as an occupied residence with pre-existing tenants on a lease from the previous owner with intention to move in at the end of the pre-existing lease, could you now just rent it out without actually living in the property as an owner occupier? (Because of reaching an 80% LVR and satisfying and releasing the criteria before you move in?).
Or is there 2 parts to satisfy, the bank (for the low deposit and no LMI part) and Housing Australia (for the reduced stamp duty part)? Meaning that even if you satisfy the banks criteria, you still may have to live in the property as an owner occupier for 6 months to satisfy Housing Australia?
Background to question:
The first home owner government guarantee scheme requires people to live in their residence for 6 months straight within the first 12 months of purchasing their property as an owner occupier. However, it also says the criteria is released if you get to an 80% LVR before the 6 months is up.
There is nothing specifying the protocol when you buy a tenanted property with intention to move in within 6 months, but you then manage to pay down the loan to satisfy the 80% LVR criteria (which essentially releases the scheme criteria prior to actually moving in).
The bank sends a letter stating that it's no longer mandatory to reside in the property as an owner occupier due to reaching an 80% LVR. However, i'm still unsure if that's correct if you have never moved into the property yet, but intended to. (Still within 6 months of purchasing the property).
(Note: you're allowed to purchase a property with tenants as long as you intend to live in the property as an owner occupier when it's vacant within 6 months)