Boarding house servicing income

Discussion in 'Loans & Mortgage Brokers' started by Bma, 10th Dec, 2020.

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  1. Bma

    Bma Well-Known Member

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    7th Dec, 2020
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    Sydney
    Hi,

    Is a boarding house treated as a business in terms of borrowing? So that the income of a boarding house would be treated as business income instead of rent when applying for a loan?

    Than you!
     
    Bma, 10th Dec, 2020
    #1
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    It's treated as a commercial rental income so it's shaded 30 - 40%+ by most resi lenders who allow the rent to be used towards servicing
     
    Lindsay_W, 10th Dec, 2020
    #2
  3. Bma

    Bma Well-Known Member

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    Sydney
    Thank you Lindsay.
     
    Bma, 10th Dec, 2020
    #3