I took out an investment loan in 2011 and soon after moved in 2012, I recently realized that my loan type did not change to home owner loan, so therefore I have been paying a higher interest rate, am I entitled to a rebate or refund for the past 4 years ?

Hello Theo. I think that is a great question to take up with your bank. Get them to show you the difference between the two rates for the period in question. Good luck.

My experience is unfortunately clients in that situation previously have not been eligible for a rebate. The onus falls on to the client and the broker to make the change.

This is the same when people turn an owner occupier place into an investment and they do not change the loan and therefore ae paying a lower rate than they should. The banks do not say anything.

But this is my experience to date...definitely worth a challenge. All the best.

Hi Theo, I would be interested to find out which lender your home loan is with to be able to advise you. I believe that when you took out the initial loan in 2011 that there may not have been the difference in interest rates between owner occupied and investment loans that there is now. I recommend that you contact your lender to change the nature of your property to owner occupied asap and discuss the possibility of a refund. I suspect that you will find that the onus is on you to advise the lender of any change in the use of the property.

Hi Theo,

Different interest rates depending on loan purpose (ie investment or owner occupied) only came into effect last year so four years of different interest would not be applicable for that whole period of time.

Did you receive a letter from the lender notifying you of this increase? As your lender would have been obliged to notify you last year regarding the increases to your interest rate based on the fact the loan is an investment property. This would have prompted the call to the bank so if you didn't receive this letter then I would say you definitely have grounds to claim the interest for the last few months.

I love to put these cases to the banks and getting customers refunds so happy to pursue further for you if you wish.

Have a great evening!
Nicole :)

Hi Theo, from 2012-late 2015 there was generally no difference in investment / owner occupied rates. There is always different rates with different products with the same lender, so you could have been paying more than newer offers with the same lender. This wouldn't entitle you to a refund.

I would suggest we review your loan now and get you a rate your happy with. Regards Ariel

Hi Theo. I really wouldn't bother. I cant recall a bank ever considering this type of request. You would need to prove in court that the bank was at error and it doesn't sound like they were. i dont want you to waste time and energy plus the fact most major bank rates were the same for both purposes until late last year.

NO ...sorry