Yes, you can buy more property using your rental income.
- Increase your borrowing power! 100% of your rental income can be used to service your loan.
- Are you looking to be a professional investor? This can be a great way to expand your property portfolio!
- We know which lenders can help if your rental income is more than your salary.
- Rental income from family is accepted.
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Our award-winning mortgage brokers will find you the right home loan for your situation.
What is a rental income home loan?
A rental income home loan is when a lender uses the rent you receive from your investment properties to service your loan.
How much of your rental income will the banks accept?
Most lenders use only 80% of your rent because they assume that 20% of the rent you receive will be used to pay for managing agent’s fees, council rates, strata levies, repairs and to cover for any vacancies.
However, each lender has a different policy, and one lender will even assess your loan using 100% of your rent income which can increase your borrowing capacity!
Can earning too much rent get you declined?
Successful property investors often hit a wall once they’re earning more income from rent than they are from their salary. From a lender’s point of view, highly exposed investors tend to be high risk borrowers as they can be affected by market downturns more severely than normal homeowners.
If you’re classified as “rental reliant” then the banks may decline your application or only take part of your rent income into account when assessing your loan.
Our expert brokers know which lenders do not consider rent reliance to be a problem and are more likely to approve your loan.
How can we help professional investors?
We commonly help professional investors who have 10 to 50 investment properties and want to grow their portfolio.
There are three ways that we can help professional investors to prove their income and continue expanding their portfolio:
- 80% of Rent Income Method: This is the standard method used by most banks to assess rent income. One of our lenders can accept 100% of your rental income if you’re not reliant on negative gearing (positively geared investors only).
- Financial Statements Method: We provide the last two years tax returns or financial statements to show your actual profits from investing, rather than the bank’s “rule of thumb” method using only 80% of your rent income. One of our lenders can then assess your mortgage on its merits.
- Professional Investor Low Doc Loan: One of our lenders allows you to declare your rent income instead of providing rental statements, tenancy agreements and tax returns. This is helpful if your situation is complex or if you cannot prove your full income.
We’ve lent more than $1 billion+ Australia-wide.
They walked us through the process step by step
We would like to say thank you to Hank from Home Loan Experts for all his help in getting us a guarantor loan.
We were really unsure if we would ever get an approval for a home loan, but Hank immediately knew the right lender to approach for our situation, and made the whole process simple…
We would definitely recommend Home Loan Experts to anyone. Thanks again to Hank and the team from Home Loan Experts for making it possible for us to own our first home.
Ianthe S & Jadobi l, Carina QLD
A very friendly, professional and helpful team
The team was very friendly, professional, helpful and went out of their way to get the right loan that was suitable for us… I recommend this service for those who find it very hard to purchase a property going directly to a bank. Thank you Home Loan Experts, you have finally given my family and me the opportunity to own a beautiful home.
Denise H, Epping VIC
A lot smoother and less stressful than having to deal with banks as an individual
Our mortgage broker was very personable and made us feel like he went above and beyond to assist us in getting our home loan. He had a great knowledge of guarantor home loans which set our minds at ease. He was happy to answer any questions even outside business hours and responded in a professional and timely manner. As a second home buyer I would recommend going through the home loan experts as this process was a lot smoother and less stressful than having to deal with banks as an individual. I would especially recommend Hoa to others.
Melissa H & Rhys B, Wynnum West QLD
Exceeded my expectations in terms of results
Throughout the process I felt confident in knowing I could rely on you and at no stage did I ever feel that trust could be an issue with you. You have exceeded my expectations in terms of results and have done this with very short notice. You are an asset to your company and a role model to your profession… I already have and will continue to recommend your services to friends and family.
Thomas M & Tanya W, Botany NSW
So easy to speak to no matter how stressful the situation
We are both so grateful to Amine for all of his hard work and great advice over the past year! It’s been such a long journey… We are starting to settle into our new home in Trentham now. It is just so beautiful and relaxing! We really love it and are so happy with our purchase. Amine was right all along – things happen for a reason! Thank you Amine for always being there for us.
Tanya & Andrew B, West Melbourne VIC
He even made a guarantor loan from our parents seem effortless!
After the roller coaster ride of going cap in hand to the bank manager, only to be turned away… we found Tony. What a refreshing change! Within a 2 week time frame, we had approval and were able to follow the normal approval process to get the loan…. With Tony’s inside knowledge on how lenders think he was able to approach the bank with an excellent case and really put us in a great position in the lender’s eyes…. We recommend Tony and Home Loan Experts strongly and will be using them for our next purchase…
Julie W & Luisa C, Waikiki WA