What is PPOR or Main Residence and why does it matter in home loans and property buying

Importance of PPOR in Home Loans and Property Buying

Summary of Advantages for Primary Residence Owners:

*   **Capital Gains Tax Relief:** When selling your main home, you may not have to pay capital gains tax, providing a financial perk.
*   **Stamp Duty Discounts:** You might receive reduced or waived stamp duty costs by planning to live in the newly purchased home, a boon for first homebuyers.
*   **Mortgage Benefits:** Owning and living in your residence often results in lower mortgage interest rates and decreased lenders mortgage insurance costs.

Understanding the Tax Advantages of a Primary Residence

Exemption from Capital Gains Tax

Claiming your property as your main home exempts you from capital gains tax during a sale. This offers a chance to profit from any enhancements made to the property without tax implications. Remember, professional tax advice is always recommended before taking action.

The Six-Year Rule Explained

Should you rent out your primary residential property, it may still qualify for capital gains tax exemption for up to six years after you've moved out. This rule can be advantageous for your investment strategy and provide considerable tax savings.


*   The six-year rule can play a pivotal role in your long-term investment plans.
*   Grasping these tax subtleties can help in maximizing your tax benefits.

How Duty Reductions Can Help Homebuyers Financially

Opportunities to Save on Stamp Duty

There are opportunities for those purchasing their first home and planning to live there to gain significant or complete stamp duty exemptions. Depending on your state, these benefits may differ.

Buying Additional Homes

Purchasing another home that you plan to reside in could also affect your stamp duty costs. This varies by state but is worth investigating for potential savings.


*   Stamp duty reductions lighten the initial financial load for homebuyers.
*   State-by-state rules can offer substantial savings if understood and applied properly.

Mortgage Perks: Better Rates and Lower Costs

The Impact of Owner-Occupied Status on Interest

Declaring a property as owner-occupied can play a critical role in achieving lower mortgage rates, as lenders often charge investors more.

Cheaper Lenders Mortgage Insurance

Owner-occupied properties often enjoy the benefit of less expensive lenders mortgage insurance, offering an additional financial saving over the course of a mortgage.


*   Favorable interest rates translate to more affordable monthly payments and less total interest paid.
*   Decreased lenders mortgage insurance reduces financial pressure on homeowners.

Critical Considerations for Property Ownership

When designating a property as your principal residence, it’s essential to consider the myriad financial benefits including tax exemptions, duty savings, and mortgage-related advantages.

Key Notes:

1.  **Tax Strategies:** Utilize CGT exemptions and the six-year rule to enhance your property's profitability.
2.  **Duty Savings:** Stay informed about stamp duty variations across states to ensure maximum savings.
3.  **Mortgage Insights:** Recognize how an owner-occupied status influences mortgage costs.

Consultation with mortgage brokers or tax experts is recommended to fully benefit from these property ownership aspects and to make choices that are both informed and financially advantageous.

In conclusion, owning your main residence is strategic, with the potential to improve your financial position significantly. By utilizing tax benefits, navigating duty reductions, and securing favorable lending rates, one can maximize the value derived from property investments.

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June 12, 2024

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Karis from UNO was so supportive throughout the entire process of buying our first home. She was contactable at any time, and answered all our silly questions for us. We couldn't recommend Karis and her team enough, as it always felt like she was in our corner with our best interests at heart.
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We dealt with Karis Churchill as the mortgage broker for our first home. Karis was so supportive and knowledgeable through the whole process! A+ mortgage broker. Definitely utilise her expertise if you’re buying a house!
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I only have praise from my Uno experience! I was a broker sceptic, having done all of the hard work myself for my first two property purchases and sale. I'm now a proud broker advocate having used UNO (Karis Churchill) for two refinances and purchase. The value add Karis brought cannot be underrated! Not only has Karis got me the best rate, with a bonus cash back (nearly unheard of in this climate), she has done it with the least back-a-forth and with the least administrative burden on me (the thing that can deters people from refinancing to begin with). Karis is always on top of everything. Karis knows her stuff. She is the most responsive of any professional service provider I've ever used (my banker never text with an update at 7pm on a Sunday) without being overbearing. You know she's got your back and in my experience the value speaks for itself. Thank you to the whole UNO team, thank you especially to Karis.
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