Will the bank count rent from a family member?

Generally yes, if it's on a signed lease or it shows up consistently in your bank statements. Some lenders accept private rental agreements, some want an agent-managed lease, and a few won't use private rent at all.

What happens if the rent amount changes each month?

Banks will generally take the lowest amount you've received and use that as the rent ongoing. One short payment can lower the figure for the whole application, which reduces how much you can borrow.

Do I need a real estate agent if I'm renting to family?

Not always, but it helps. An agent-organised lease puts someone in the middle and is accepted by the widest range of lenders. Without one, you're relying on lenders that accept private rent shown in bank statements.

Does cash rent count for a home loan?

Generally no. If the bank can't see the rent landing in your account, it can't verify it. Have it paid by transfer, at the same amount, with the address or the word rent in the description.

How many months of rent do I need to show?

The common pattern is around three months of consistent rent credits in your bank statements. Some lenders want longer, and some will use your tax return instead if the rent has been declared.

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I rent my investment to a family member and the rent is inconsistent. Will the bank still count it?

Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 3 min read

The short answer

Yes, it can count, but you've generally got to tick a few extra boxes. The cleanest version is a signed lease, normally through a real estate agent, so there's a degree of separation between you and the tenant. Some lenders will also accept a private rental agreement, providing we can show consistent rent coming into your account.

The catch is the word inconsistent. When the amounts jump around, what the banks will generally do is look at the lowest amount you've received and count that as the rent ongoing. One light month can end up setting the number for the whole application, and that can cut how much you can actually borrow.

The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.

Why the bank wants someone in the middle

Rent from a stranger through an agent is easy for a bank to believe. There's a lease, there's a property manager, there's a rent ledger, and the amount lands on the same day every month. Rent from your sister or your mum is harder to believe, not because anyone thinks you're lying, but because family arrangements tend to be loose. A bit less this month, skip a week because things are tight, square it up later in cash.

So generally the bank wants a signed lease, and preferably one that's been organised by a real estate agent, so there's a degree of separation between you and whoever's living there. That's the version that gets counted with the least fuss.

What lenders do with private rent

A number of lenders will take private rent with no agent involved, and some will even take it with no written lease, as long as the money shows up in your bank statements. The common pattern is around three months of rent credits, each one clearly coming in as rent, ideally labelled with the address or the word rent. A few lenders want a longer run of statements, and a few won't take private rent at all unless it's on a tax return, a lease or an agent's ledger.

Two things don't help you. Cash rent handed over outside your account generally doesn't count, because the bank can't see it. And amounts that move around get read the conservative way. Several lenders use the lowest deposit in the period when the amounts vary, so if your family member paid the full amount for two months and half in the third, the half is the number that goes into the calculator. On top of that, most lenders only count a portion of any rent, to allow for vacancies and costs, so that lowest figure gets shaved again.

If the rent has already been declared on your tax return, that can be another way in at some lenders, which is worth knowing if the last few months of statements are messy.

The simple fix before you apply

Get your family member paying on time, at the same amount, every time, straight into your account. Set it up as an automatic transfer if you can, with the address or the word rent in the description. Three clean months of that and the lowest amount and the normal amount are the same number, which is exactly what you want.

Then, to quell any other concerns, get a real estate agent to organise a signed lease between you and your family member, so there's someone sitting in the middle. It costs a little, but it turns a family favour into a tenancy the bank recognises, and it opens up the full range of lenders instead of just the ones that accept private arrangements.

The honest bit: cheap rent costs you borrowing power

A lot of people rent to family at mates' rates, and that's your call to make. Just know the bank counts what actually lands in your account, not what the place could get on the open market. If the rent is low, or it bounces around, your borrowing capacity reflects that.

So before you apply for anything, whether that's another purchase or a refinance, look at the last three months of rent credits the way a bank would. If they're not clean, it's often worth waiting a few months and fixing the pattern first.

Want to know how much of that rent a bank will use?

A 30 minute call. We go through your statements, how the rent's been paid, and which lenders will count it and at what figure, before you apply.

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Next question

If I move out and rent my place out, does my mortgage become tax deductible?

The original purchase debt may become deductible once it's rented.