Is Airbnb Income Treated Differently by Lenders?

Short-stay income looks fantastic on a spreadsheet — until the bank gets involved. If you're counting on Airbnb returns to get a loan over the line, it's worth knowing how lenders actually treat them.

Imagine a Cairns apartment projected to earn $95,000 a year on Airbnb versus $45,000 as a normal rental. Many buyers assume the bank will use the bigger number. Most won't — they ignore the Airbnb figures, value the place on ordinary long-term rent, and trim that further. To get the real income recognised, you generally need two years of tax returns proving it, or a specialist lender that will count 70% of your genuine booking history.

The lesson isn't that short-stay doesn't work — it's that the income the market sees and the income the bank counts are two different things. Plan for the bank's version and you won't get caught short.

David and Julia's Cairns apartment shows the gap: projected at $95,000 a year on Airbnb versus $45,000 as a long-term rental, they assume the bank uses the bigger number. Most won't — they ignore the short-stay figures, value it on ordinary long-term rent, then count only about 80% of that. To get the real income recognised you generally need two years of tax returns proving it, or a specialist lender that counts 70% of a genuine booking history.

Two things catch buyers out: estimated future Airbnb income won't count with mainstream banks — they want a track record — and council or body-corporate restrictions on short stays can put some lenders off the property altogether. Plan for the bank's version of the income, not the spreadsheet's.