Many investors use rental income to boost their borrowing power, but can you get a home loan using a child’s rent?
The short answer is yes. But it’s a niche lending policy, and it’s only available through a handful of specialist lenders.
Can I Use Child’s Board As Income?
It’s not standard across the lending industry, but some lenders do accept board income from a child as part of your serviceability assessment. This can help increase your borrowing power if you’re looking to purchase a new home or refinance your current mortgage.
Lenders will allow your child’s rent or board as income on a case-by-case basis. These are policy expectations and are not widely available through all lenders.
How Much Board Income Will a Lender Accept?
The amount of income that the lender will accept depends on lending policies.
Some lenders will accept 100% of the income if it’s not from an immediate family member.
How do I prove the boarding income?
As this is not a formal tenancy agreement, most mainstream banks won’t accept board from family members. But with the right lender and documents, you may still qualify.
You’ll typically need to provide:
- A statutory declaration from an authorised witness confirming the amount your child pays you regularly
- Bank statements showing consistent rental payments being made from your child’s account to yours
Some lenders will accept the board income from day one, provided your documents are in order.
What If My Child Pays Board In Cash?
It can be really difficult to prove this if you are not receiving board directly from your child via a bank transfer.
However, the lender may accept the stat dec on its own if you’re in an otherwise strong financial position or instead may partly accept this rent income.
What If I House International Students?
If you house international students through the Australian Homestay Network organisation, you’ll receive around 85% of the weekly fee charged to the student in return for providing them with a place to stay and food.
This usually works out to be $220 to $300 a week but can you use it as rental income for a home loan?
Unfortunately, the home loan using child’s rent is an exception to standard rental income policy and only applies to immediate family members.
What If My Flatmate Pays Rent?
If you sublease one of your rooms to a friend, again, there wouldn’t be a tenancy or lease agreement in place, so it can be difficult to get approved for a mortgage.
However, you can help your chances of approval depending on how much you rely on that income and how you can prove that the rent is regular and ongoing.
Check out the rental income home loan page for more information.
Is This Strategy Right for You?
Using your child’s board as income can improve your borrowing power, but keep in mind:
- It’s not guaranteed – It depends on the lender’s policy and your documentation.
- There may be tax implications – Unlike standard rental income, you likely can’t claim tax deductions.
- Your child could move out – This income isn’t always stable long-term.
It’s a good idea to seek financial advice before relying on this strategy, especially if you’re using it to manage repayments.