Up until now, banks have calculated property income based on rent only. If you had Airbnb income, even for two years, the bank would ignore it in favour of a theoretical rental income from a traditional long-term tenant.
That’s all changing now as we’ve heard from the BNZ that it will be the first lender to take proven short-term rental income into account. (Talk to your mortgage adviser to find out more.)
That’s awesome news for our many Airbnb managers and owners, who can demonstrate their strong proven income to get better terms on their existing properties. It also makes it easier to borrow against your equity if you want to expand your portfolio – your servicing will be stronger and your borrowing position strengthened. We don’t think it will be too long before other major lenders follow suit – it’s about time they caught up with the realities of the market!