Renting out your house - formalities

Real Estate
21

Thank you ! Appreciate the link will read it through

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22

Thought I’d piggy back this thread instead of starting a new one.

If you put 20% down because you your property is for own use, don’t you then need to put another 5% down if it now becomes a rental property? And what if you had a fixed mortgage, you can’t pay down your mortgage above the mortization schedule?

23

IIRC 25% is the minimum equity for a rental, subject to a stress test which is something like 5% interest rate (rent needs to be > [loan value x 5%] )

Not sure if they will enforce that on day 1 if you are moving away temporarily, for example

24

There are a few banks that offer 80% also for a rental. Just got one such offer, so I know of at least one bank.

25

I think it’s a good moment to summarise our case. So
it seems everything worked as expected. Finally previous owners were renting until the end of March, then we started our renovation project. We have moved to the house end of September (of course with renovation
still
ongoing :man_facepalming:, ok, it’s not that bad, we wait just for some things to be finished). I declared the rental income from 2021- no problems from tax authorities at all. After we have moved, we informed LPP - all fine on that end too.

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