Switching Mortgage from Owner to Investor

[singinvestor]

I am currently looking to purchase an apartment to live in. The plan is to take out an interest only mortgage at a 10 year fixed rate. The plan is to rent the apartment out in 3-5 years. I am wondering at that stage, can I continue paying under the rate of the existing 10 year mortgage even though the property is now an investment or will the financial institution force me to break the 10 year mortgage and take out a new investment mortgage at whatever rates are available at that time?

 

[Gaules]

I think your main challenge will be to get a bank that does 10 year interest only...apart from that you should be fine - banks do not really care for done deals;

Maybe if in 3-5 years you want to buy another property than the bank used on that transaction cares...worst case scenario would be to inject some capital so the % of mortgage capital decreases...

On another hand in 3-5 years the property will raise in value, therefore a simple valuation would automatically decrease the risk, and therefore you shuld be OK