An owner-occupier loan is a specific type of home loan designed for individuals purchasing a property they plan to live in as their main residence. These loans are commonly utilised by individuals or families to buy a house or apartment for personal use, rather than for investment purposes like to tenants.

Owner-occupier loans often come with different interest rates and conditions compared to investment property loans. Lenders may offer more competitive interest rates or better terms on owner-occupier loans because they are deemed less risky than loans for rental properties.

When you take out an owner-occupier loan, you must reside in the property as your primary home. Should you choose move out and lease the property, it’s essential to notify your lender, as your loan may need to be converted to an investment loan.

Generally, you cannot claim tax deductions for interest on a loan used to buy or enhance your primary residence, as it is considered personal interest and is non-deductible. However, if part of your home is used for business or to generate rental income, you might be able to deduct a portion of the interest related to that use. It’s advisable to consult a tax professional or financial advisor to the tax implications of your home loan and determine potential eligibility for deductions.