Rental income, serviceability and existing property already owned

Hi all, just a general Q for today.

Do all lenders mandate a prospective borrower to be renting out their property and generating income for a specified period to be able to count this as rental income for serviceability calculation purposes OR do some lenders accept rental appraisal income letter if it is not tenanted (existing property)? If the latter, and just to check, do these lenders include Big 4 banks / lenders such as BankWest, STG bank etc?

 

If you intend to rent it out they can include the potential rent. but if it has been not rented for some reason such as a relative staying rent free then the would think this is likely to continue and might not count the rent. It will depend on the circumstances.

 

Thank you @Terry_w, in this specific instance the prospective borrower currently lives in the property but is contemplating renting this out and moving in with their family member interstate for a new employment role.

 

The new employment role interstate might be a harder piece to work through (if it isn't with existing employer)

 

That shouldn't be too much of a problem, some lenders might need a stat Dec to confirm living with parents.

 

Why limit the options to just those lenders?

This sounds like someone trying the old trick "just say you're living with your parents/family member and renting your place out, the banks won't know that your actually living there" type of thing.
I've seen a few spruikers recommend this to their clients before. (Not saying you are one of them, I'm just giving you my experience when hearing these types of questions in the past)
Many have done it before and gotten away with it sure, instantly improves the borrowing capacity right?

Hard to prove when the family member lives interstate or somewhere far from where the applicant currently works, unless there's a signed employment agreement/contract for the new role in the new area.