Short-stay and Airbnb income is assessed more cautiously than a standard lease, and many lenders count only the rent the property would earn on a normal tenancy.
A short-stay property can earn more in a good month than a long-term tenancy, but lenders look at what the income is likely to be across a whole year, through quiet seasons, vacancies and rule changes.
Most assess the property on the rent it would achieve on a standard lease. A smaller group will count short-stay income itself once it has a track record, and that difference can change how much you can borrow.
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The first question every Sydney investor asks, repayments against rental income, the way a lender sees it.
A gap isn’t a dealbreaker, negative gearing, interest-only periods and offset structure change the cash-flow picture. That’s the conversation.
Estimates only, rates, vacancy, costs and tax change the real picture. Not credit or tax advice.
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Short-term rental accommodation in NSW has to be registered, and in Greater Sydney non-hosted short stays have been capped at 180 nights a year.
Some councils outside Sydney set lower caps, and strata schemes can adopt by-laws that ban short stays in apartments that are not the host’s home.
Check the current state rules, the council’s position and any strata by-laws before you buy, because a cap or a ban changes both the income and what a lender will count.
Treat it like any investment loan: keep the borrowing separate from your home loan, consider whether an offset account or an interest-only period suits the cash flow, and run the numbers on long-term rent as a fallback.
If the short-stay income disappeared, the property should still be affordable on a standard tenancy. Our guide to negative gearing and the rental yield calculator help with that test. If the property is also a family holiday home, second home loans covers land tax and how lenders classify it.
Four things that decide whether the loan goes through.
Yes. Many lenders will lend on a property you plan to let as a short stay, but most assess it on the rent a standard lease would achieve. Fewer lenders count the short-stay income itself, and those that do usually want a track record first.
Some do, once the income is shown in your tax returns, often for one to two years, and they count only part of it. Others ignore it and use a long-term rental appraisal. The lender you choose can change your borrowing power noticeably.
Rarely. Without a history, lenders generally rely on a rental appraisal for a standard lease. Projections from a booking platform or a management company are not usually accepted on their own.
Yes. Short-term rental accommodation in NSW has to be registered, non-hosted stays in Greater Sydney have been capped at a set number of nights a year, and strata schemes can ban short stays in some apartments. Check the current rules before relying on the income.
Not for a lender. Serviced apartments are usually tied to a management or letting agreement and fall under stricter policies, with lower maximum LVRs and fewer lenders. An ordinary home let as a short stay is assessed more like a standard investment property.
Comparing short-stay with a standard tenancy? The rental yield calculator shows the return on each, and our investment loan FAQ covers the basics.
Charles can check which lenders will count short-stay income, how much of it, and what the property itself needs to pass a lender’s rules.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
General information only, not credit, tax or legal advice. Lender policies on short-stay income and property types vary and change over time, as do NSW short-term rental rules, council caps and strata by-laws.
