All Topics / Help Needed! / Can i use housemates to improvement serviceability and borrowing power?

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  • Walking to run
    Join Date: 2014
    Post Count: 68

    Hello everyone, it has been a while since Ive been on here, I always love the helpful advice I get, and sharing ideas is great. So, back to the time to buy PPOR dilemma and how to handle it. This one is probably best for the brokers.

    So, we all know its better to rent than own generally, in that it affects our borrowing power, but what if i had a three bedroom home, rented two rooms out and lived in one, whereby i reduced the share of my payments to $500 a month. This is much better than the rent i was paying. How would this pan out? Due to my lost cost of my share and higher income from the housemates, would this make my loan therefore more serviceable and thereby increase my borrowing power? Or would it not count in the same way due to the income being from housemates? What things do i need to consider? Would they need to be run by a property manager. Any tips for how to do this best?

    Id really like any help I can get on my idea.


    Profile photo of Richard TaylorRichard Taylor
    Join Date: 2003
    Post Count: 12,024

    Hi WTR

    Nice idea but hate to say No lender will take board income into consideration when assessing serviceability.


    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

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