How Do Lenders Assess Airbnb and Short-Stay Income for a Home Loan?
Self-Employed Home Loans
Guide
Australian lenders do not use one standard percentage for Airbnb income. A lender may start with gross short-stay receipts, a third-party rent estimate, verified net income after expenses and tax, or the property's long-term market rent. This guide shows what can count, what proves it, what changes borrowing capacity, and what can stop the loan before the income is even read.
Quick Answer
There is no single Airbnb-income percentage used by Australian lenders. Current published policies use different assessment bases: one public policy uses 65% of verified gross short-stay rent or 80% of a third-party estimate, while another uses 100% of verified net income after expenses and tax for an existing short-stay property. Other lenders may fall back to long-term market rent or require a full tax-return history. The property must also be acceptable security. Compare the assessment methods and check the building rules.
Also called: short-term rental income, holiday letting income or Airbnb income. They mean the same thing to a lender: rent from stays shorter than a standard residential tenancy, usually booked through a platform or a holiday letting agent. Boarder and rented-room income is a different category, covered below. A 'granny flat interest' in pension rules is a different thing again and is not covered here.
How do lenders assess Airbnb and short-stay income for a home loan?
Lenders assess Airbnb income in two layers: first they decide whether the property is acceptable security, then they decide which income base they will use for serviceability. There is no single standard percentage. Depending on the lender and scenario, the starting point can be verified gross bookings, a third-party rental estimate, verified net income after expenses and tax, or long-term market rent.
Two different questions decide a short-stay application, and they are asked in this order. First, will the lender accept the property as security, given how it is used and what the building's rules allow? Second, how much of the income will it count when it works out what you can afford to repay? A home loan assessed on your business income still goes through both.
The table below sets out how each kind of rental income is usually treated. It is the same serviceability test lenders use for any rent, with short-stay income discounted harder because bookings rise and fall through the year. For how lenders treat rent on a standard investment loan, see our investment property loan guide.
If you buy through a company, the loan sits outside the consumer credit laws, while a loan to you personally for a residential investment property is covered by them. Which structure suits you is a question for your accountant.
- Will the lender accept the property? A serviced apartment, very small unit, letting-pool property or building with restrictive short-stay rules can fail before income is considered.
- What income base does the lender use? Gross bookings, a third-party estimate, verified net income, or long-term market rent are different numbers.
- What share of that base is used? A higher percentage does not always mean more counted income if it is applied to a lower net figure.
- What proves the income? A lodged tax return, notice of assessment, platform or managing-agent statements, bank credits and recent booking activity can all matter.
This is why two lenders can look at the same Airbnb property and produce different serviceability income without either one having a simple "Airbnb percentage".
| Income type | Usually counted? | Evidence lenders ask for | Common reason it is not counted |
|---|---|---|---|
| Long-term residential lease | Yes, after a discount | Signed lease, agent statements or bank statements | No signed lease, or rent well above the local market |
| Short-stay income with a track record | Often, at a lower share than a lease | Lodged tax return and notice of assessment, platform or managing agent statements | History shorter than the lender's minimum, or income not yet in a lodged return |
| Projected short-stay income on a purchase | Rarely | A managing agent's letter of expected rent, at a few lenders | The lender uses the valuer's long-term rent figure instead |
| Room or boarder income in your own home | Some lenders, capped or excluded | A written agreement and regular credits to your account | Listed as unacceptable income by some lenders |
| Granny flat on the same title, leased | Some lenders | Signed lease and statements | No council approval for the dwelling |
Sources: APRA, Prudential Practice Guide APG 223 Residential Mortgage Lending (June 2025, read 2 October 2026); published lender credit policies and document checklists, read 2 October 2026; ASIC, Information Sheet 101 (read 2 October 2026).
How much of your Airbnb income will a lender count?
There is no single percentage. Current Australian lender policies use different bases, so the useful question is not only "what percentage counts?" but "what number is the percentage applied to?" A published policy can use 65% of verified gross short-stay rent, 80% of a third-party estimate, or 100% of verified net income after expenses and tax for an existing property.
Those figures are not contradictions. They are different serviceability methods. For example, 100% of a lower net-income figure can produce less counted income than 65% of a higher gross-bookings figure. A lender may also ignore the short-stay premium and use long-term market rent, especially where there is no established history.
| Published approach | Income base | Amount used | Evidence | What it means |
|---|---|---|---|---|
| Verified gross approach | Gross short-stay rental income | 65% in one current public policy | Lease or tenancy evidence, rental statement, tax return and notice of assessment, depending on the file | The haircut allows for vacancy and costs before the income enters serviceability |
| Third-party estimate approach | Rental estimate from an acceptable valuer or real estate agent | 80% in one current public policy | Independent rental estimate | Useful where the lender accepts an estimate, but APRA says banks should place less reliance on future estimates than actual receipts |
| Existing-property net approach | Net short-stay income after expenses and tax | 100% of verified net income in one current public policy | Tax return, short-stay rental statements and long-term rental appraisal | 100% does not mean 100% of gross Airbnb bookings |
| Long-term-rent fallback | Market rent on a standard residential lease | Depends on lender policy and sometimes LVR | Valuation or rental appraisal | The Airbnb premium may contribute nothing if the lender services the property on ordinary market rent |
Sources: AMP Broker Hub, published rental-income policy (read 2 October 2026); Regional Australia Bank, Business & Rural Banking Underwriting Guidelines Version 3.0, effective 29 May 2026; APRA, APG 223 Residential Mortgage Lending (June 2025, read 2 October 2026). Policy changes often and a published percentage is only one part of a lender's assessment.
What do published lender policies say about short-stay income?
Six lender documents read on 2 October 2026 set out how short-stay income is treated. Three count 65% of it, one counts 80% and then taxes it, and two publish evidence rules but no share. Broker articles that AI tools often quote put the range at 50 to 90% of gross bookings. None of the documents read publishes a share of gross short-stay income above 80%, or above that lender's own share for a lease. Where 100% appears in a published policy, it is applied to verified net income after expenses and tax, which is a smaller starting number.
| Lender | Short-stay share counted | Standard lease share | Evidence asked for | Other conditions |
|---|---|---|---|---|
| Major bank 1 | 65% | 75% | Rental statements, a signed lease or a tax return | Serviced and dual key apartments not accepted as security; minimum 50 square metres of living area |
| Bank 2 | 65% of verified income, 80% of a third-party estimate | Not stated | The most recent 12 months of managing agent statements | Gross rent counted in servicing capped at 6% of the property's value; serviced apartments not accepted as security |
| Non-bank 3 | 65% of confirmed gross | 80% | Confirmed gross rent | Serviced apartments, dual key apartments and strata hotel or motel units not accepted as security |
| Non-bank 4 | 80%, then taxed | 80%, then taxed | Agent statement, or bank credits if let privately | Boarder income not accepted |
| Major bank group 5 (two brands) | Not published | Not published | Latest tax return and ATO notice of assessment | None published |
| Bank 6 | Not published | Not published | Lodged tax return showing 12 months of rent, notice of assessment, and an Airbnb statement showing rent received in the last 120 days | For a holiday rental being bought, a managing agent's letter of expected annual rent |
Sources: published lender credit policies, product guides and document checklists dated February to September 2026 (one undated), read 2 October 2026. Policy changes often; this is not an offer from any lender.
Does a lender use gross Airbnb income or profit after expenses?
Either can happen. One current public policy starts with verified gross short-stay rent and uses 65%, while another current published guide uses 100% of verified net income after expenses and tax for an existing short-stay property. That is why comparing percentages without comparing the income base is misleading.
Why is short-stay income often discounted?
Short-stay bookings can vary by season and vacancy, and the gross receipts do not equal the owner's usable income after platform fees, cleaning, management, rates, insurance and other costs. APRA says prudent banks generally discount most non-salary income by at least 20%, apply a minimum 20% haircut to expected rental income, use a larger haircut where vacancy risk is higher, and place less reliance on estimates of future rent than on actual receipts. APRA's practice guide applies to authorised deposit-taking institutions and is guidance rather than a fixed percentage for every lender.
Under a One Doc loan the same principle still matters; see how rental-income shading works on a One Doc loan. For standard rent on a second property, see how much of the rent actually counts.
How many months of Airbnb history do lenders want, and which statements count?
There is no single evidence rule. Common published routes include a lodged tax return and notice of assessment, about 12 months of managing-agent or platform statements, recent Airbnb activity, bank credits, or a third-party rental estimate. A lender that accepts one route may reject another, and brand-new projected income is treated more cautiously than established receipts.
Have these ready, because lenders choose from this list:
- your lodged tax returns showing the short-stay income
- the matching ATO notices of assessment
- platform earnings summaries for the same period
- managing agent statements, if an agent runs the bookings
- bank statements showing the payouts arriving
- your registration number, where your state requires one (see the table further down)
For a self-employed borrower the tax return matters most. APRA's guide notes that self-employed income is harder to assess and expects banks to check it through income and cash-flow records plus documents from a third party. If the short-stay income is not yet in a lodged return, many lenders will not count it. How lenders assess self-employed income and which documents count on a low doc application cover the rest of your file.
When will new Airbnb income start counting?
New Airbnb income starts counting when it meets the evidence route used by that lender. For tax-return policies, that may mean waiting until the income appears in a lodged return. Statement-based policies may instead require a sustained history such as 12 months of managing-agent statements. A new spare-room arrangement can be treated as speculative and excluded entirely under some policies.
If you plan to borrow, timing still matters. A tax-return lender cannot use income that has not yet reached the return it relies on, while a statement-based lender may need enough months to show that the bookings are established. Do not lodge a return early just for a loan without speaking to your accountant; instead, work backwards from the evidence a suitable lender actually requires.
What if the short-stay income runs through your business or trust?
The lender reads the return the income sits in. If the property is held in a trust or company, the rent shows in that entity's return, and the lender will want that return and usually your personal one too. Some low doc lenders will accept other evidence for your business income, but rental income is usually checked against statements or a return either way. If you are buying through a trust, how the income is distributed is a question for your accountant.
Not sure your income would make the cut? Check whether your short-stay income would count.
Can you use projected Airbnb income to buy a property?
Projected Airbnb income can be used in limited ways, but a new property is materially harder than an established one. Some policies accept a third-party estimate or managing-agent letter; others assess the property on long-term market rent, and at least one current public policy explicitly assesses a new standalone short-stay property on a long-term rental appraisal.
Of the lender documents read, one bank accepts a managing agent's letter outlining the expected annual rent for a holiday rental being bought, and another counts 80 per cent of a third-party rental estimate. Many lenders do neither and use a long-term rent figure for a property you have not yet let.
In our experience the valuer's report gives a long-term rent figure, not a short-stay one, so a lender that relies on the valuation will service your loan on what the property would earn on a standard lease. That figure also feeds the loan-to-value ratio only through the property's value, not its booking income.
What should you check before you sign a contract on a short-stay property?
Check the building and the rules before the income, because they decide whether a lender will take the property as security at all. In this order:
- Read the strata by-laws, including any rule that caps how long anyone can stay.
- Confirm the building type. Serviced apartments, dual key apartments, strata hotel or motel units and some letting pools are refused by some lenders, and some set a minimum living area of 40 to 50 square metres.
- Check the state rules where it sits: registration, night limits and any levy (see the table below).
- Get a managing agent's letter of expected annual rent.
- Have the loan assessed on long-term rent as well, so you know the fallback if a lender will not read the projection.
- Ask your solicitor or conveyancer about making the contract subject to finance.
If the purchase only works on short-stay income, find out which lender reads it that way before you sign a contract. Talk to us before you sign.
There is no booking history yet. One lender will count part of a managing agent's letter of expected annual rent. Another services the loan on the valuer's long-term rent, a lower but steadier figure. The difference changes how much can be borrowed, not whether the unit is acceptable. That is decided by the building's by-laws and type.
Illustrative. Not a statement about any particular lender.
Holiday let or long-term lease: how does the lender's number change on the same property?
A standard lease is usually simpler to verify, but it does not automatically produce a higher percentage or a higher servicing figure. The result depends on the lender's income base, the percentage applied to it, the property's LVR and the evidence available. The correct comparison is the final annual income the lender puts into serviceability.
| What changes | Short-stay use | 12-month lease |
|---|---|---|
| Income base | May be gross bookings, verified net income, a third-party estimate or long-term market rent | Usually verified or estimated residential rent |
| Share used | Published examples include 65% of verified gross, 80% of an estimate, or 100% of verified net income | Can vary by lender and LVR; one current public policy ranges from 80% to 95% for residential investment rent |
| Evidence | Tax returns, platform or agent statements, bank credits and recent booking evidence may be required | Lease, rental statement or acceptable rental estimate is usually simpler |
| Use restrictions | State registration, night limits, levies and strata rules can matter | Short-stay-specific rules generally do not apply |
| Security | Some serviced, hotel-style, dual-key, very small or letting-pool properties can be outside lender policy | Standard residential use can widen lender choice, but the property still has to meet normal security policy |
Sources: AMP Broker Hub published rental-income policy; Regional Australia Bank Business & Rural Banking Underwriting Guidelines Version 3.0; APRA APG 223. Read 2 October 2026.
If gross Airbnb receipts are $50,000 and a lender uses 65% of gross, the servicing income is $32,500. If another lender verifies $29,000 of net income after expenses and tax and uses 100% of that net figure, the servicing income is $29,000. The "100%" policy produces the lower servicing figure in this example because it starts from a different income base.
Compare the final annual income inserted into servicing, not just the headline percentage. Illustrative arithmetic using published assessment methods. Your actual income, evidence and lender policy decide the result.
Compare different Airbnb income assessment bases
Enter the figures you actually have. These are three different assessment methods, not a borrowing estimate and not three offers from the same lender.
- 65% of verified gross
- 80% of third-party estimate
- 100% of verified net income
The percentage alone is not the answer. Compare the final annual income inserted into servicing. A 100% policy may start from a much lower net figure, while a 65% policy may start from higher gross receipts. Security, serviceability buffers and lender-specific caps still apply.
Does Airbnb income increase borrowing capacity, and what happens when you refinance?
Airbnb income can increase borrowing capacity only if the lender accepts both the property and the income under its current policy. High gross bookings do not automatically mean a larger loan: the lender may shade the gross income, use a lower long-term rent figure, start from net income after expenses, or exclude new or speculative income.
Can you refinance using Airbnb income?
Yes, potentially. Refinancing can be easier to evidence than buying a new Airbnb property because an existing host may now have tax returns, platform or managing-agent statements and actual bank credits. But the new lender reassesses both the income and the property security from scratch. A refinance can still fail with strong Airbnb earnings if the apartment, building or use falls outside that lender's current security policy.
Should you switch to a long-term lease before applying?
Not automatically. First compare the lender's final servicing figure under both uses. A long-term lease can simplify evidence and widen lender choice, but an established short-stay property can still produce more counted income under a policy that accepts the history. Changing use solely for finance can also affect bookings, tax and tenancy arrangements, so model both paths before changing anything.
What if Airbnb income drops after the loan settles?
The lender's serviceability assessment is made at application, but the repayment obligation continues if bookings later fall. That is why a borrower relying heavily on short-stay income should test the loan against quieter months, vacancy, cleaning and management costs, and the long-term-rent fallback rather than treating peak-season revenue as permanent income.
Can Airbnb income help you buy the next property?
Yes, if it is accepted and verified. The lender adds the allowable rental figure to your other income, then assesses the proposed loan together with your existing mortgages, living expenses, credit limits and other commitments. For a self-employed borrower, the Airbnb figure can help, but it does not replace the lender's assessment of the business income supporting the rest of the application.
Can you rent out a room or a granny flat in the home you live in?
You may be able to, but the finance question has two parts: whether your loan permits the change in use, and whether the lender will count any new room, boarder, granny-flat or short-stay income. Check the loan contract and lender requirements before you rely on the rent in a future application.
Will a lender count income from a boarder or a rented room?
Some lenders count boarder or room income and some refuse it. Of the lender documents read, two list boarder income as unacceptable, one bank counts room rental at 65 per cent, and one major bank counts up to $150 a week for one boarder on an owner-occupied loan, but only for first home buyers who have a guarantor, are claiming the First Home Owners Grant or are using the Australian Government 5% Deposit Scheme. If boarder income is what makes the numbers work, the lender you choose decides it.
How do lenders treat a granny flat on the same title?
In our experience a lender will usually count a granny flat's rent only if the dwelling has council approval and a signed lease. The valuer gives each dwelling on the title its own rent figure, and an unapproved granny flat is one of the most common reasons the rent is left out. If you are adding one to a second property, the same applies.
Tax changes too. The ATO says you can only claim expenses for the part of the home you rent out, and renting out part of your home means you lose the full main residence exemption from capital gains tax, though a partial exemption may apply. How that works for you is a question for your accountant.
Do you need to tell your lender before you Airbnb your home?
Check your loan contract and tell the lender before making a material change from principal-residence use to short-stay or investment use. Owner-occupied and investment lending are treated differently, and the lender may need to update how the property or loan is classified. Do not assume that because the loan has already settled, the property's future use no longer matters. What your contract requires is a question for the lender and, where needed, your solicitor.
Does Airbnb automatically change an owner-occupied loan into an investment loan?
Not automatically the moment you accept a booking. But changing a principal residence into a rental or short-stay property can affect how a lender classifies, prices or reviews the loan, so check the contract and notify the lender before a material change of use. A refinance lender will assess the property's actual use at the new application rather than simply relying on how the old loan was originally described.
Does putting your home on Airbnb affect home insurance?
It can. Do not assume an ordinary home or landlord policy covers paying short-stay guests. Check the policy before listing the property and tell the insurer how the property will be used. Airbnb's Host liability program and Host damage protection do not replace checking your own homeowner, landlord or liability cover, and Airbnb says hosts should review their own insurance because not all policies cover guest-caused damage or loss.
The lender and insurer make separate decisions. A lender accepting the loan or the Airbnb income does not mean the property is adequately insured for short stays, and insurance approval does not mean the lender will accept the income or the security.
Sources: published lender credit policies and document checklists, read 2 October 2026; ATO guidance on renting out part of your home; Airbnb, Host Liability Insurance programme summary (updated 30 June 2026, read 2 October 2026).
Which council and state short-stay rules matter to a lender?
Short-stay rules are set state by state. NSW and WA require registration before you advertise; NSW caps stays without a host at 180 days a year in Greater Sydney and 60 in most of Byron Shire; Perth caps them at 90 nights without development approval; and Victoria (7.5 per cent) and the ACT (5 per cent) charge a levy on stays under 28 days. A lender may ask about any of them.
| Jurisdiction | Registration | Night limits | Levy | Strata or owners corporation power |
|---|---|---|---|---|
| New South Wales | Register on the NSW Planning Portal before you advertise | Without a host: 180 days a year in the Greater Sydney region, the Ballina area and certain land in Clarence Valley and Muswellbrook; 60 days in Byron Shire outside two 365-day precincts. With a host: 365 days | No state levy | A by-law made by special resolution can ban short stays where the lot is not the host's principal place of residence |
| Victoria | No state register of properties. Owners who take bookings directly, not through a platform, register with the State Revenue Office for the levy | Not checked for this guide | 7.5% of the total booking fee on stays under 28 days, paid by the platform, or by the owner on direct bookings. Not charged on a principal place of residence or a room that cannot be occupied separately | An owners corporation can ban short stays by special resolution (75% of lot owners), not for a principal place of residence |
| Western Australia | Register before you advertise or take bookings, hosted or unhosted | Perth metro without a host: up to 90 nights in 12 months without development approval | No state levy | Not checked for this guide |
| Queensland | No state register | Set by councils: Brisbane rates publicly advertised stays under 42 nights in a separate rating category; Noosa requires council approval, renewed annually, and $10 million public liability cover | No state levy | Not checked for this guide |
| Tasmania | Booking platforms report listing data to the state each quarter | A principal residence can be let without a planning permit while you are away, or up to 4 bedrooms while you live there; otherwise ask your council | A proposed 5% levy was defeated on 9 September 2026 and is not law | Not checked for this guide |
| ACT | Booking platforms register for the levy; the ACT Revenue Office page sets no owner registration | Not checked for this guide | 5% of the total booking amount on stays under 28 days, paid by the booking platform, rising to 7.5% from 1 July 2027. Direct bookings and hosted stays are not charged, and there is no principal place of residence exemption | Not checked for this guide |
Sources: NSW Planning, Short-term rental accommodation (updated 10 February 2025) and Byron Shire (updated 5 May 2025); NSW Government, Short-term rental accommodation (updated 22 September 2025); Strata Schemes Management Act 2015 (NSW) s 137A; State Revenue Office Victoria, Short stay levy applies from 1 January 2025 (updated 2 December 2025) and Understanding the short stay levy (updated 29 September 2026); Consumer Affairs Victoria, Making rules to ban short stay accommodation (updated 7 January 2025); WA Government, Short-term rental accommodation register FAQs (updated 9 January 2025); Brisbane City Council, How rates are calculated; Noosa Council, Short stay letting; Tasmanian Treasury, Short Stay Levy Bill (updated 15 September 2026); Tasmanian Building Standards, Short and medium term visitor accommodation (updated 20 July 2026); Tasmanian State Planning Office, Short Stay Accommodation fact sheet (September 2025); ACT Revenue Office, Short-term rental accommodation levy (updated 1 July 2026). All read 2 October 2026.
South Australia and the Northern Territory are not in the table because no current state rule was read for this guide. If you run the property as a hosted business, if you run it as a bed and breakfast explains how lenders see that instead, and commercial accommodation finance covers motels and parks.
Can a strata by-law or the building itself stop a short-stay loan?
Yes. A lender can accept your Airbnb income and still reject the property securing the loan. Serviced apartments, hotel or motel-style strata units, dual-key apartments, letting-pool properties, very small units and buildings restricted to short-stay use can fall outside some lenders' security policy. In that situation, better income evidence does not fix the application: the borrower needs a lender that accepts the property type, a different use of the property, or a different security.
- In NSW, s 137A 'Short-term rental accommodation' of the Strata Schemes Management Act 2015 lets an owners corporation make a by-law, by special resolution, banning short stays in a lot that is not the host's principal place of residence. A by-law has no effect against a lot that is the host's principal place of residence.
- In Victoria, owners corporations have been able to ban short stays since 1 January 2025, by special resolution of 75 per cent of lot owners, but not for a lot that is someone's principal place of residence.
- Published lender policies refuse some buildings outright: serviced apartments, dual key apartments, units in a strata hotel or motel, and units in a letting pool that cannot be taken out and lived in permanently.
- Some lenders also set a minimum unit size, between 40 and 50 square metres of living area depending on the lender and location.
A ban does not stop you mortgaging the unit, but it can stop the use that produced the income the lender was counting. Read the by-laws before you buy, not after. For serviced apartments and letting pools, and for buying the letting rights rather than one unit, the lending works differently.
Sources: Strata Schemes Management Act 2015 (NSW) s 137A and Consumer Affairs Victoria, as listed under the state table; published lender credit policies, read 2 October 2026.
Does a short-stay restriction change how the property is valued?
It can lower the value, because a restriction narrows who can buy the unit. One lender's published policy tells valuers to value units in managed or pooled arrangements without taking any serviced apartment lease or furniture package into account, and in our experience the valuer's rent figure is a long-term one either way. If the building is run as holiday accommodation, see how lenders value accommodation assets.
What we see on short-stay files
Indicative, from Switchboard panel scenarios, August to October 2026.
- The security question comes first. A unit whose by-laws cap how long anyone can stay reads as short-stay, and lenders that will count Airbnb income on a house decline the unit itself.
- Published percentages are not directly comparable until you check the income base. One policy can use a lower share of gross receipts while another uses 100% of a lower verified net figure.
- The files that stall are the ones where the platform income is not yet in a lodged return, the history is shorter than the lender's minimum, or the lender on the home loan was never told the home is being let.
Not an offer, a quote or a prediction for your application. Lender policy changes often and differs between lenders. This is what we have seen, not what any lender will do on your application.
The building's by-laws cap how long any one occupant can stay, which marks the building as short-stay. Lenders that would count the Airbnb income decline the apartment as security. The way forward is a lender that accepts that building type, or changing how the apartment is used.
Illustrative, drawn from the kind of file we see. Not a prediction for any application.
Why did a lender ignore your Airbnb income, and what fixes it?
A lender usually leaves Airbnb income out for one of a handful of reasons: it is not yet in a lodged return, the history is too short, the lender does not accept the building, a strata rule stops the use, or that lender does not count that kind of income. Most are fixed by timing or by a different lender, not by changing the property.
| Reason | What it looks like | What usually fixes it |
|---|---|---|
| Income not in a lodged return | You started hosting this financial year, or your latest return is not lodged | Lodge the return, or use a lender that reads 12 months of managing agent statements |
| History too short | Fewer months of bookings than the lender's minimum | Wait until you reach it, or on a purchase use a lender that reads a managing agent's letter of expected rent |
| Building not accepted | Serviced apartment, dual key apartment, strata hotel or motel unit, letting pool, or a unit under the lender's minimum size | A lender that accepts that building type; the income question comes after |
| Strata by-law or occupancy cap | The by-laws ban short stays in lots that are not a principal place of residence, or cap how long anyone can stay | Letting on a standard lease instead, or living there where the by-law does not apply to a principal place of residence |
| Wrong income type for that lender | Boarder or room income at a lender that lists it as unacceptable | A lender that counts room income, at a cap or a share |
| Unapproved second dwelling | Rent from a granny flat without council approval | Council approval and a signed lease |
Sources: published lender credit policies and document checklists, read 2 October 2026; Switchboard panel scenarios, August to October 2026. Indicative only, not a prediction for your application.
A decline is often about that lender's policy rather than the income itself. See what to do after a decline.
How is Airbnb income taxed, and what does that change on a loan application?
Airbnb income is assessable and goes in your tax return, and that return is what most lenders read, so income you have not declared usually cannot be counted.
Since 1 July 2023 platforms that take short-stay bookings report what they pay hosts to the ATO under the sharing economy reporting regime. The ATO says holiday home rental income must be included in your return, expenses must be apportioned if you use the property privately for part of the year, and a capital gain or loss arises when you sell. Renting out part of your home can reduce the main residence exemption from capital gains tax. All of this shapes the net income a lender reads, and your tax return sets your borrowing as a self-employed borrower. How it applies to you is a question for your accountant.
What tax records matter when you use Airbnb income for a loan?
The ATO requires rental income from short-term accommodation, holiday homes and sharing-economy platforms to be declared. If you use the property privately for part of the year, rental expenses may need to be apportioned, and using part of your home to earn rent can affect the main-residence CGT exemption. Those tax outcomes matter to a loan application because some lenders verify the Airbnb income from the lodged return or use a net figure derived from it.
Platforms facilitating short-term accommodation have been within the ATO's Sharing Economy Reporting Regime since transactions from 1 July 2023, so platform-reported income can be matched against tax reporting. Keep platform statements, agent statements, expense records and bank credits consistent with the return you give the lender.
Sources: ATO, Residential rental properties; ATO, Sharing Economy Reporting Regime; ATO, Treating former home as main residence. Read 2 October 2026.
What changed for holiday home deductions in 2026?
In May 2026 the ATO released a tax ruling (TR 2026/1) and two compliance guidelines (PCG 2026/2 and PCG 2026/3) on rental properties and holiday homes, covering both short-stay and long-term rentals. If a holiday home is not mainly used to produce income, you cannot claim its ownership and use expenses, which include interest, council and water rates, body corporate fees, capital works and decline in value. Advertising, booking fees and cleaning after a guest stay remain deductible. A small amount of private use, such as a week or a few off-season weekends, is allowed if the expenses are apportioned, and PCG 2026/2 sets out a time-based method for that. If you rent a room in your home, the days it sits empty count as zero days available for rent. Whether your property is mainly used to produce income is a question for your accountant.
This matters on a loan because many lenders read the rental figures in your return, and some start from net income. If the 2026 rules change which expenses you can claim, the rental figures in your next return will look different from the last one, so ask your accountant how they land before you apply.
Sources: ATO, Taxation Ruling TR 2026/1 and Practical Compliance Guidelines PCG 2026/2 and PCG 2026/3 (May 2026); Accountants Daily, ATO releases finalised guidance on deductions for holiday homes (23 May 2026). Read 2 October 2026.
What should you have ready before applying with short-stay income?
Have the income evidence, the building's rules and your current loan terms in one place before you apply: your lodged tax returns, about 12 months of statements, the strata by-laws and your loan contract.
- Your lodged tax returns showing the short-stay income, with the matching notices of assessment.
- Twelve months of platform or managing agent statements, or as many months as you have.
- The strata by-laws, and any rule that limits how long guests can stay.
- Your state registration number, where your state requires one.
- Council approval for any granny flat or second dwelling.
- Your current loan contract, if the property is your home.
- For a purchase, a managing agent's letter or acceptable third-party estimate of expected rent.
- A long-term rental appraisal for the same property, so the application can be tested if the lender ignores the Airbnb premium.
- A simple annual breakdown of gross bookings, platform and management fees, cleaning and other property costs, so gross and net income are not confused.
Send us those and we can tell you which lenders would read your income the way you need, before any application goes in. If a lender has already said no, start with why the income was left out. When you are ready, we can check which lenders read your income the way you need.
Short-stay income can help you borrow, but there is no universal Airbnb percentage. The lender first has to accept the property, then choose an income base, apply its serviceability method and verify the evidence. Gross bookings, a rental estimate, verified net income and long-term market rent can all produce different answers on the same property.
Key takeaway: Compare the income base, the percentage, the evidence and the property policy together. The percentage on its own tells you very little.Frequently asked questions
Yes, at many lenders, but there is no single percentage. Published policies can use a share of gross bookings, a share of an independent estimate, verified net income after expenses and tax, or long-term market rent. See the current assessment methods.
Several banks and non-banks publish short-stay income policy, but they do not use one common formula. Current public examples include 65% of verified gross income, 80% of a third-party estimate and 100% of verified net income for an existing short-stay property. Policy changes often, so the useful comparison is the lender's current income base, evidence rule and property policy. See the assessment-method table.
Often yes, but check your loan contract and tell your lender first, because owner-occupied loans are assessed on you living there and many contracts have terms about leasing the property. Your strata by-laws and council rules also apply. See whether you need to tell your lender before you Airbnb your home.
Yes, potentially. An existing host can often provide stronger evidence than a new purchase because there may be tax returns, platform or managing-agent statements and actual bank credits. The new lender still has to accept the property and its short-stay use. See how refinancing with Airbnb income works.
Either can happen. One current public policy uses 65% of verified gross short-stay rent, while another uses 100% of verified net income after expenses and tax for an existing property. Always compare the income base as well as the percentage. See gross versus net Airbnb income.
In some states, yes. In NSW an owners corporation can make a by-law by special resolution banning short stays in a lot that is not the host's principal place of residence, and in Victoria an owners corporation can ban them by a 75 per cent special resolution, again not for a principal place of residence. See how strata rules affect a short-stay loan.
Yes. Under the sharing economy reporting regime, platforms that take short-stay bookings have reported what they pay hosts to the ATO since 1 July 2023. How it affects your return is a question for your accountant. See how Airbnb income is taxed.
Yes. Short-stay income is assessable and goes in your tax return. For a home loan it matters twice, because most lenders read your lodged return and will not count income you have not declared. Your accountant can confirm how to report it. See what lenders want as evidence.
It can. The ATO lets you treat a former home as your main residence for up to 6 years while you use it to produce income, which includes letting it on Airbnb after you move out, and indefinitely if it earns nothing; no other property can be your main residence at the same time, apart from up to 6 months when you are moving house. Your accountant can confirm whether it applies to you. See the 6 year rule on a second property.
It can, but only the amount the lender accepts is added to serviceability. High gross bookings do not guarantee more borrowing capacity because a lender may shade them, use net income, fall back to long-term rent or exclude new income. See how Airbnb income affects borrowing capacity.
Usually yes. The ATO treats the rent as income and lets you claim only expenses for the part of the home you rent out, and it can reduce your main residence exemption from capital gains tax. Your accountant can confirm your position. See renting a room or taking a boarder.
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