Interest rate for rental property and owner-occupied property

[Saad Mushtaq]

I am thinking about investing in the rental industry and was wondering whether it'd be ideal to take out a mortgage as an owner-occupied and get the lowest rates for mortgage and then stay in the property for a couple of months and then rent it out. Would that cause any legal repercussions and will I be considered dishonest? My broker was telling me that If I am not living in it then I should go for the rental investment mortgage that is a little higher than the owner-occupied mortgage rates. And, If I do tell them that it's going to be owner-occupied then I will be considered dishonest and will have legal repercussions. Just want to have an understanding of this so I make the best decision for myself without being dishonest. 

FYI: I am based out of Manitoba, if that helps. 

[Theresa Harris]

You said you are from Manitoba, so I'm assuming the property is in Canada.  You need to live in it.  Having said that the rates are the same for owner occupied and rentals.  The only difference is for rentals you need 20% down payment.  For owner occupied you can do as little as 5% down, but anything under 20% you have to pay CMHC insurance.  The insurance is added to the cost of the mortgage, but it is often a lot (almost the difference between what you put down and 20%).

I talked to my bank the other day and for a 5 year fixed, they could do 2.29%.  That was one of the big banks.