NRAS Tax incentives not taken seriously for serviceability by lenders
The National Rental Affordability Scheme (NRAS) is starting to become accepted by lending institutions. In fact, over the last 8 months Home Loan Warehouse has seen considerable support for the scheme and the properties that it produces from the lenders. However, there is a considerable variance in the degree of support.
Westpac & St George at this stage will not allow the NRAS tax incentive to be included in serviceability calculations. This is common among lenders at the moment. There are lenders who will allow the incentive to be included. These lenders are accessible and may be a viable option.
Lenders like to limit their exposure to particular developments. This is a common criteria and most lenders do not want exposure of more than 25% of the total dwellings in the development.