Does rent from boarders count in serviceability?

[albanga]

$600 rental for 4 boarders in your PPOR a is impressive. I am really keen to see your set-up to accommodate this if you have pictures?

 

[Brady]

OK D.T. I think you're trolling but I'll bite.

This scenario would not be in any policy document specifically. Its a combination of security and income policy and open to interpretation. I have outlined what is needed for this scenario to be considered by any reasonable lender with their own policy discretions.

I am not that big a user of Westpac so I wouldn't be confident which way they would go with it. It wasn't that long ago they wouldn't approve anything even slightly unusual. On the other hand there are other lenders that I use a lot who I know would be OK with it.

As to black and white policy I'd back myself against 99% of my colleagues.

It's actually now written in CBA policy

Rental income refers to the amount of rent received by the customer prior to the deduction of real estate agent?s commission, other expenses and income tax. Gross rental income only applies to self-contained dwellings. Room rental and board are unacceptable.

But as you stated with the correct documentation the income can be accepted. Income verified on tax return or regular credits into the account with a lease agreement are usually the keys.

 

[vaughan]

One of the points raised earlier is that the second dwelling needs to be legal, as in council approved. Is it?

 

[Corey Batt]

One of the points raised earlier is that the second dwelling needs to be legal, as in council approved. Is it?

Dependent on the type of documentation you're providing. If you're running off tax returns its not going to be a problem. I wouldn't suggest relying on illegal rentals for servicing however.