Australia - Pulling out equity to fund new purchase, banks says it needs to be a normal rental

I am now running 2 Airbnb’s and I’m trying to pull out equity from a property to purchase another property.

However, my mortgage broker told me that the lending institutions will only lend to me if I have a proof of tenancy and regular consistent income coming in from my properties. He is a very good mortgage broker so I tend to believe what he says. So for anybody in a similiar position, what strategies have you come up with to manage this in order to grow and expand the portfolio?

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I would try another broker, each company has its own guidelines.
Depending on how long you have been doing airbnb, I would think it’s no different from showing the profit and loss for a company or business when you’re trying to obtain other kinds of financing. But…normally (I am self employed and in the U.S.) yes, it’s more difficult and you usually have to show two years’ tax returns.
You might ask around for private mortgage financing, too. I was being put through the wringer buying my new house because I was self employed and then a friend, a former mortgage banker, offered to put up the money for me.

I appreciate your response Karen. Thankyou.

You might want to take a look at this thread – U.S. context but still may be useful:

Hi Linda,

Sorry, no real advice here, but watching the thread with interest.
I would have thought that if you could provide details of consistent earnings with airbnb it would be just the same as providing proof of consistent earnings from rentals.

Its certainly worth following Karen’s advice and trying other brokers. I found the same thing with insurance on our property. Many no’s and cant do’s until one broker said ‘yep, we can help here, this is how we can do it’.

Please keep us up to date if you find out any more on this.


Linda, as Karen mentioned, you should try another broker. However the loan will be based mostly on your income and they only use 50% of income that comes from rental income towards the calculation for whether you qualify for a new loan.

Also, most traditional mortgage companies will require lease agreements to substantiate rental income. However Airbnb does provide tax invoices that you may be able to use for the loan.

If you do go through a private or class B lender, note that the interest rates will be higher because you are technically obtaining a subprime mortgage since you’re not going through a traditional lender.

Hope that helps!


Hi Everybody,

My broker has now put my figures through a few other lenders calculators and as a result, his proposal is that we use a different lender, one that nobody else ever mentions (well, to be honest, one which I have never heard of). But he says I service through them, and for me that is all that matters.

You could always find a vendor finance expert. Where are you located?

It’s a year later @Chris_Keele. I would be surprised if this was still an issue.