Do I have to tell my bank that I get a loan for an investment?

[Fabian G.]

Hello everyone,

Currently I am looking for another investment property and I won't pay all of it in cash. I got a pre-approval from my bank and they asked during the pre-approval process if the loan is for an investment property.

Do I need to tell them that I get the loan for an investment property? How do they "check" if the property I buy is for investment? I could for example decide after a month of the sell to rent it out.

Obviously, the rates are not as good for an investment loan as they would be otherwise.

Thank you so much for your help!