I recently bought a brand new duplex/condo four months ago. I live in
it with my parents but now they are moving to a different city. It is
too much space for a single person so I want to rent it out and buy
something smaller to move into.

My question is to what extent does the bank enforce the "owner
occupied" rule? Also the condo developer said I need to live in it for
one year before I can rent it out. Will anyone care as long as the
payments are made and the tenants are decent quiet people?

Also when I apply for a new mortgage to buy my smaller property, what
will they think when they see I am no longer owner-occupied on my
original mortgage?

Sorry if this is confusing but would really appreciate your advice and
experience.

Thanks!