Is a holiday home owner-occupied or investment for the bank?

Personal: 2nd owner-occupied (better rates). Rental: investment.

Can I use equity from my main home to buy holiday home?

Yes — equity release from primary home is common funding source.

How does Airbnb income count?

Varies hugely — some 100%, others discount or exclude. Lender choice critical.

Are coastal properties harder to finance?

Some discounts for flood zones or remote. Established beach suburbs normal.

Tax deductibility of holiday home?

Personal: not deductible. Rental: pro-rata deductibility. Confirm with accountant.

Home Loan Refinancing

Who this guide is for

Australian homeowners wanting to purchase a holiday home or second property — for personal use, family use, or mixed use with rental income.

Sydney homeowners buying coastal/regional holiday home
Multi-generational families wanting shared holiday property
Investors looking at short-stay (Airbnb) properties
Buyers using holiday home as future retirement option

The local picture

Holiday home lending is more complex than first home. Lender treatment depends on whether it's personal use only (second owner-occupied) or generates rental income (investment). Coastal property has location risk considerations.

How Mortgagefy helps locally

Mortgagefy works with holiday home buyers. We model treatment as personal vs investment, identify lenders comfortable with regional/coastal property, and structure for tax efficiency.

Free advice.

How it works — 4 simple steps

Free holiday home chat

20-minute call about your second property plans.

Map structure options

We outline owner-occupied vs investment treatment.

Compare lender options

We identify lenders comfortable with regional/coastal property.

Settle your holiday home

You acquire your second property.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Talk to us about holiday home finance

Free 20-minute call about your second property.

Start Your Free Assessment Call 0432 634 648

Get your personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.

Home Loan for a Holiday Home in Australia: Second Property Lending