Can You Get an Investment Loan for a Short-Term Rental Property?

Short-term rental properties, such as homes listed on Airbnb or Stayz, can look attractive to investors. Before the rental income question even comes up, though, a lender has to be comfortable lending against the property itself.

That is where many short-term rental purchases run into trouble. Some lenders will not accept apartments in holiday or resort complexes, letting pools or serviced apartment buildings as security. Some value the property as if it were rented on a normal long-term basis. Local council, state and strata rules can also limit how often a property can be let short-term.

This guide focuses on the property side of an investment property loan using Airbnb or other short-stay platforms: security, local rules and valuation. How lenders count short-term rental income is covered in more detail in our Airbnb income guide.

It is general information only, based on lender policy wording we reviewed in October 2026.

Can you get an investment loan for a short-term rental property?

Often, yes. A standard house or unit that can be lived in or leased long-term is usually acceptable security, even if you plan to list it on Airbnb. The harder cases are properties that are designed, zoned or managed for holiday letting.

Lenders usually look at:

• whether the property is a normal residential dwelling or part of a hotel, resort or letting pool
• whether body corporate rules or a management agreement restrict how the property can be used
• whether permanent occupancy is allowed
• how the valuer assesses the property and its rent
• whether the short-term rental income can be verified
• whether the loan still services without relying heavily on short-stay income

Why can short-term rental properties be harder to finance?

Lenders are mainly concerned about what the property would sell for if they ever had to sell it. A property that only works as a holiday let, or that sits inside a managed resort, may appeal to fewer buyers. That can make it riskier security.

Common concerns include:

• small apartments in holiday or tourist complexes
• units held in a hotel or serviced apartment letting pool
• buildings where by-laws or management rights restrict owner occupation
• properties in areas that rely heavily on seasonal tourism
• income that varies a lot between peak and off-peak seasons

How do lender policies differ on short-term rental properties?

We reviewed policy summaries for 40 Australian lenders (a mix of banks and non-banks) from a third-party broker policy tool, as at October 2026. This is a research sample of 40 lenders, not the whole market.

Lender wording shows the main split is between ordinary dwellings that happen to be let short-term, and properties that are built or managed for holiday letting:

• HSBC says it does not accept investment properties predominantly used for short-term holiday lets as security.
• Bluestone lists short-term letting (holiday or resort) properties, timeshare and serviced apartments among unacceptable security.
• ING lists any serviced apartment, managed apartment or apartment in a letting pool as unacceptable security.
• St.George lists hotels, motels, holiday resort style developments, ski resorts and sub-lease ownership structures within a tourist or holiday location as unacceptable, along with resort and hotel units where permanent occupancy is not allowed.
• Suncorp wording for units says the property must not be restricted by management, body corporate rules or design to holiday or short-term letting.
• CBA says proposed holiday rental income is to be confirmed by an external valuation report less than 90 days old, which estimates market rent as if the property were rented on a normal basis.
• Westpac wording for holiday rental income says the property must already be owned by the borrower (or an income guarantor or self-employed entity) and be currently tenanted or available for short-term rent.

These are examples of how differently lenders approach the same situation. These examples are not recommendations, and policy must be confirmed before an application is lodged. Policies change often, so confirm the current position with a broker before you apply.

Policy summary as at October 2026, from a third-party broker policy tool (export dated 20 October 2026). The lender guides behind it are dated between April 2026 and October 2026 for the lenders named on this page. The sample counts on this page cover all 40 lenders, whose guides are dated between October 2025 and October 2026. For example, CBA's guide is dated 7 July 2026. Lender policies change often and may have changed since.

Which short-term rental properties may be acceptable security?

Properties that are usually easier to finance include:

• a standard house in a residential area that is listed on Airbnb or Stayz
• a townhouse or apartment in an ordinary residential building with no restrictive by-laws
• a property that could be leased to a long-term tenant if short-stay demand drops
• a holiday home that can be occupied permanently

In these cases, the plan to rent the property short-term often matters more for income than for security.

Which short-term rental properties can be harder to finance?

• apartments in hotels or resorts, especially where permanent occupancy is not allowed
• units that must stay in a management letting pool
• serviced apartments
• very small studio or student-style units
• timeshare or sub-lease arrangements
• properties zoned or approved only for tourist accommodation

Serviced apartments in particular have their own lender rules, including minimum sizes and letting pool conditions.

Related research: Can You Get a Home Loan for a Serviced Apartment?

Do council, state or strata rules affect short-term rental finance?

They can. Lenders and valuers may look at whether the property can legally be used for short-term letting, and how often. Rules vary by state, council and building.

NSW short-term rental rules

In NSW, short-term rental accommodation is covered by state planning rules and an industry code of conduct. Under the exempt development pathway, non-hosted short-term rental accommodation is limited to 180 days a year in Greater Sydney, Ballina, and parts of Clarence Valley and Muswellbrook. Bookings of 21 consecutive days or more do not count towards that limit. Byron Shire has its own, lower day limit in most areas. Properties must also be registered on the NSW short-term rental accommodation register and meet fire safety rules.

Victorian short stay levy

In Victoria, a short stay levy applies to short stays in Victorian properties from 1 January 2025. The State Revenue Office runs registration and returns for the levy, and a declaration for premises that are not short stay accommodation. It adds a cost that can affect the property’s net return.

Strata and body corporate by-laws

For apartments and townhouses, the owners corporation’s by-laws can restrict short-term letting in some buildings. A management agreement or letting pool can also tie the unit to a particular operator. Lenders that exclude properties restricted to holiday or short-term letting may decline these.

Before signing a contract, many buyers ask their conveyancer to check the strata by-laws, any management agreement and local short-stay rules.

How do valuers treat short-term rental properties?

The valuation is often where a short-term rental purchase becomes clearer. A valuer may:

• value the property on its use as an ordinary dwelling rather than as a holiday business
• exclude furniture, fittings and equipment from the value
• estimate the rent the property would earn on a normal long-term lease
• note restrictive by-laws, management rights or limited resale demand
• flag the property as a holiday or resort unit

A lower valuation means a higher LVR, which can mean a bigger deposit, lenders mortgage insurance, or a different lender.

How much deposit do you need for a short-term rental investment?

For an ordinary house or unit, the deposit is usually similar to any other investment property. For a holiday or resort unit, some lenders do not accept the property at all, and others may limit how much rental income they use. Bank of Us, for example, caps the rental yield at 5% where LMI applies. A larger deposit may be needed.

Lenders mortgage insurers may have their own criteria for some property types. Building in a deposit buffer helps if the valuation comes in under the purchase price.

How is short-term rental income assessed?

Lenders usually take only part of short-term rental income into account, because it is less predictable than a lease. The percentage, the evidence needed and whether proposed income can be used all vary. For example:

• ANZ uses 80% of gross holiday rental income, capped at a 7% annual return on the property value.
• Bankwest uses 90% of gross holiday rental income, or 80% in restricted regional postcodes, and says income from serviced apartments is not considered under this policy.
• Resimac accepts Airbnb and Stayz income at 90% for serviceability with 12 months of evidence.
• ME Bank asks for a lodged tax return, Notice of Assessment and an Airbnb statement showing rent received in the last 120 days for Airbnb investment properties.
• Bank of Us uses 70% of gross Airbnb income, with a 5% rental yield cap where the loan is subject to LMI.

For a new purchase with no rental history, some lenders use a valuer’s estimate of normal long-term rent instead of projected Airbnb income. Our Airbnb guide covers income in more detail.

Related research: Can You Use Airbnb Income for a Home Loan in Australia?

Lenders also shade long-term rent, which is covered in our rental income guide.

Related research: Do Banks Use 100% of Rental Income for a Home Loan?

10 common mistakes with short-term rental property loans

1. Assuming any property that suits Airbnb suits every lender.
2. Buying in a resort or letting pool without checking lender security rules.
3. Not reading the strata by-laws before signing.
4. Ignoring local short-stay day limits or registration rules.
5. Expecting projected Airbnb income to count in full.
6. Not allowing for a valuation based on long-term rent.
7. Not allowing for a lower valuation that excludes furniture and fittings.
8. Leaving no deposit buffer for a lower maximum LVR.
9. Forgetting levies, cleaning, platform fees and management costs.
10. Relying on peak-season income to make the loan work.

How to improve your chances before applying

• Check that the property is a normal residential dwelling that can be occupied permanently.
• Get the strata by-laws and any management agreement reviewed before signing.
• Check local and state short-stay rules for the address.
• Run the numbers on long-term rent as well as short-stay income.
• Keep 12 months of clear platform statements and tax returns for any existing short-stay property.
• Allow for a larger deposit if the property is a holiday or resort unit.
• Ask the lender about valuation approach before paying a deposit.

Is it worth waiting before applying?

Waiting can help if you already own a short-term rental and are building a full year of income history, or if you are saving a bigger deposit for a harder property type. It is less likely to help if the property itself is outside a lender’s security rules, because more time does not change the building or its by-laws.

Example scenarios

Scenario 1: House in a coastal town for Airbnb

A buyer is purchasing a standard three-bedroom house in a coastal town to list on Airbnb. The house can be lived in or leased long-term, so many lenders may accept it as security. The loan may be assessed on a long-term rent estimate rather than projected holiday income.

Scenario 2: Resort apartment in a letting pool

A buyer is looking at a one-bedroom apartment in a resort where units must stay in the letting pool. Several lenders in our sample exclude this kind of security, so the number of options is narrower and the deposit needed may be larger.

Scenario 3: Sydney apartment with short-stay by-law limits

A buyer plans to list a Sydney apartment as non-hosted short-term accommodation. The 180-day limit in Greater Sydney and the building’s by-laws may cap how many nights can be booked, which affects the income a lender may consider.

Scenario 4: Existing Airbnb property with 12 months of income

An investor already owns a holiday home with 12 months of Airbnb statements and a lodged tax return. Lenders that accept holiday rental income may use part of that income, subject to their shading and caps.

So, can you get an investment loan for a short-term rental property?

Often, yes, if the property is an ordinary dwelling that can be occupied permanently. The harder cases are resort, letting pool, serviced apartment and holiday-only properties, where several lenders limit or exclude the security.

Short-term rental purchases are usually smoother when the property suits the lender’s security rules, local rules allow the planned use, and the loan works on a conservative income estimate.

Need help with a short-term rental property loan?

A Fundd mortgage broker can help you compare options and check whether current lender policies may suit your short-term rental purchase. We can review the property address, strata by-laws and any rental history with you before you apply.