Renting rooms in PPOR- which loan?

Discussion in 'Loans & Mortgage Brokers' started by Jamesaurus, 29th Jun, 2020.

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  1. Jamesaurus

    Jamesaurus Well-Known Member

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    If I am looking a buying a PPOR, and intend on renting out the rooms,

    Q1) will banks give me the OO rate or the IP rate?

    Q2) Would lenders take into account the potential income from renting out say 2 rooms in a 3br house for serviceability purposes?

    (appreciate the separate tax issues; capital gains and deductability etc)
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    1 yes
    2 no, generally not
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    They'll give you OO rates, and won't take rental/boarding/rooming income into consideration for the purchase.
     
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