Frequently Asked Questions (FAQ)What is a short-term rental property loan? A loan for short term rental property is a type of financing specifically used to purchase or refinance properties that will be rented out for short periods. They cater specifically to the needs of investors looking to capitalise on short-term rental opportunities, such as vacation homes and Airbnb properties.
This rental property loan is different from traditional short term mortgages. This short term loan is a quick loan that often considers the potential rental income from the property when determining how much money you can borrow.
What types of properties qualify for short-term rental property loans?Many types of properties fit the bill when it comes to qualifying for short term property funding for a rental loan. This includes vacation homes, condominiums, and other dwellings intended for short-term leasing.
If you are considering applying for a loan for short term rental property, here are some situations when it might be a good idea to consider one:
Add more properties to your business. In this case, you will use the
short term loan capital for property investment to expand your portfolio of properties for rent. You can use the income from your existing properties, plus the probable income from the ones you’re planning to add, to qualify for a bigger loan.
Different lenders have varying eligibility criteria for holiday home financing or a rental property acquisition loan. As a borrower, you must do your part in researching and understanding the requirements for rentals and other
alternative home loan options.
Renovate a property you already own. If you have a property you think you could earn more from after some updates, a loan for short term rental property can cover these costs. Renovating will likely boost the rentals you earn from this property.
Use the property funding to buy a new vacation home for rent. You can use a short term loan as a vacation rental loan when you find a property with good potential to earn when used for short-term renting.
Meanwhile, if you’re searching for ‘
short term home loans Australia’ you can use for single security bridging, such as a new property, retirement homes, or land lease, Bridgit offers a fast and hassle-free application.
How can I improve my chances of getting approved for a short-term rental property loan?Your chance of getting approved for a loan for short term rental property depends on the criteria of the lender. Two of the most common financing options available for rental property funding are bank loans and agency loans.
Aside from studying the lender’s criteria, it will also help to do the following to increase the likelihood of securing a rental property financing loan:
Prove you can afford to pay. Prepare your financial documents – everything that can help you qualify for instant approval financing. These can include your tax returns and pay stubs for the last two years. Be ready to explain your capability to cover the monthly payments for the new property from any income gained from existing rental properties and your personal income.
Boost your credit score. A loan for short term rental property has different terms compared to a
short term home loan, which typically has a lower standard of credit rating.
Prove you have enough cash on hand. It will increase your chances of getting approved for a short term mortgage for a rental property if you have enough cash savings to cover six to twelve months of expenses in addition to what you will use as a down payment.
On the other hand, Bridgit offers short term lending for home loans without the same hassles you will experience from other lenders when applying for a loan for short term rental property. Aside from flexible pricing, you can expect an approval offer in twenty-four hours.
Bridgit: reshaping the landscape of Australia’s home financingAt Bridgit, we follow a motivating force: ‘Made for Today.’ This shows our commitment to helping Aussie homeowners understand the values of their properties and enabling them to secure their dream homes without feeling the pressure of selling first.
Moreover, we employ the latest technological advancements to streamline the loan approval process, making it faster, more efficient, and less cumbersome for our customers. This technology-first mindset allows us to provide rapid solutions, but it’s about more than just speed.
It enables us to lighten the operational load, ensuring that our team can focus on what truly matters: efficient customer service and support. Bridgit is here to ensure that your journey to acquiring your next perfect property is smooth, swift, and stress-free.
If you are currently looking for ways to bridge your home finances, don’t hesitate to get in touch with us. Submit an application at Bridgit today!
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