Unfortunately, occupancy misrepresentation, or lying about who will be living in the property, is common in mortgage applications. You may think it's okay to claim that the property will be your primary residence when you actually plan to rent it out as an investment property. After all, a loan is a loan and you will be responsible to pay for it, so what difference does it make?
The problem with this, though, is that if you have an investment property, you need an investment home loan instead of an owner-occupied home loan, which comes with lower interest rates and fees. Lenders deem investment properties to be higher risk than residential, as people will usually work harder to repay the mortgage if their own home is at risk. Minimum down payments are also significantly bigger on rental properties. From the lender’s point of view, you’re stealing money from them by making them take on more risk than they agreed to. So spill the beans on who will be living on the property, as it could amount to occupancy fraud which has serious consequences.
3. Income and employment details