🏡 Turning Airbnb Income Into Borrowing Power!

Introduction

Airbnb has changed the game for property owners. Whether you’re renting out a spare room or managing a full-time short-stay investment, that extra income can help you qualify for a home loan — if you know how to present it.

But here’s the catch: not all lenders treat Airbnb income the same way. Because short-term rentals can be seasonal and unpredictable, banks tend to be cautious. Some will accept it, some won’t, and others will only count a portion of it.

💰 How Much Airbnb Income Do Lenders Count?

Most lenders in Australia will only consider 70% of your gross Airbnb income when assessing your borrowing power. That’s because they factor in vacancy rates, seasonal dips, and maintenance costs.

To get that income counted, you’ll usually need:

• At least one year of tax returns showing Airbnb income and expenses
• A Notice of Assessment from the ATO
• An annual income statement from your Airbnb managing agent (if applicable)
• Sometimes, a valuation report showing market rent potential

If your Airbnb income is new or inconsistent, lenders may reject it or apply a bigger discount.

🧾 What If You’re Buying a Property to Use as Airbnb?

Good news: some lenders will approve loans for properties you plan to rent out on Airbnb. But they’ll look closely at:

• Property type: Studio apartments over 50m² are easier to finance than tiny units or hotel-style rooms
• Location: Properties in major cities or regional centres are preferred over rural or high-density areas
• Your deposit: You can borrow up to 95% of the property value in some cases, but going over 80% may trigger Lenders Mortgage Insurance (LMI)

👨‍👩‍👧‍👦 Can Family Help You Qualify?

Yes! If your deposit is small, a family member can act as a guarantor using the equity in their own home. This can boost your borrowing power and help you avoid LMI.

🧠 Pro Tips to Boost Your Loan Approval

• Track your Airbnb income carefully: Use spreadsheets or accounting software to show consistency
• Keep your property well-maintained: High ratings and low vacancy rates help prove reliability
• Work with a broker who understands short-term rentals: They’ll know which lenders are Airbnb-friendly
• Don’t overstate your income: Lenders will verify everything, so be honest and accurate

📌 Final Thoughts

Airbnb income can help you get a home loan, but it’s not as straightforward as traditional rent. The key is to show that your income is stable, well-documented, and backed by a solid property. With the right lender and the right paperwork, your Airbnb side hustle could be the stepping stone to your next investment.

If you’re thinking about buying a property to rent on Airbnb or want to use your existing income to refinance or upgrade, it’s worth chatting with a mortgage broker who knows the ins and outs of short-term rental lending.

📲 Reach out today for expert advice, real answers, and a strategy tailored to your goals. Because your property dreams deserve more than guesswork — they deserve a plan!

👉 Contact AA Finance Solutions — we’re ready when you are.