Renting house, must tell bank?

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TheManWho

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As a first time buyer, if I get a mortgage from the bank for a principal dwelling home can I rent it out for a year before moving in without telling the bank?

If I have to tell the bank, how would they ever find out if I did not tell them?
 
If possible, you would be better off waiting to buy until you are ready to occupy it yourself.

The bank probably wouldn't mind too much, but they may have a clause in their loan agreement which allows them to charge you a higher rate. Also, under the Central Bank rules, they should lend you only 70% of the value.

However, it's not a big issue for them and they would probably take no action.

Brendan
 
In certain situations (e.g. relating to arbitrary rules/policies/guidelines which won't materially affect anyone) I'm inclined not to ask questions or volunteer information that might trip me up. I suspect that such usually suits the other party in these situations too. Your situation might change and you might move in or perhaps have difficulty renting . . my mindset would be that I'm buying as an owner occupier . . once I had the keys I could consider other options, but that would be my business. My view on these things my not be typical.
 
Thanks for the replies. Say I didn't tell the bank I was renting my house out, would they have any means of finding out I was doing this?

Sure hypothetically they could find out if they went to enough effort. But practically speaking is there anything that would signal to them that I was renting the house that then would cause them enough suspicion to look into it?

I'm thinking realistically speaking they would not find out. The only information they have on me is related to the mortgage and my monthly payments.

If I wanted to be ultra cautious I would ensure tenant is paying me into an account with a bank different to that of my mortgage provider.
 
I think the bank would be the least of your problems in this scenario.
Have a search, even just of this site, and read some of the nightmare stories of tenants and the ptrb. Also the amount of overheads/costs of renting. In my opinion it's just not worth the risk.
I am assuming you would register with the PTRB if you are renting out your house.
 
Buddyboy said:
I think the bank would be the least of your problems in this scenario.
Have a search, even just of this site, and read some of the nightmare stories of tenants and the ptrb. Also the amount of overheads/costs of renting. In my opinion it's just not worth the risk.
I am assuming you would register with the PTRB if you are renting out your house.
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As long as you pay your Loan payments i feel banks have enough on their plate without checking if the house is being rented.
 
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