What do I need to do if I rent out a room to family or friends?

If you're still living in the property but you're renting a room or part of the house to a family member or a friend, you don't need to change your home loan. That's because it is still your main residence. In terms of the tax implications, renting out a room to family or friends is considered a domestic arrangement and therefore not considered to be rental income. This means you can't claim deductions for expenses in your tax return.

How much does an investment loan cost?

The interest rate that you get will depend on a number of factors, so it's hard to say how much it will cost exactly. As of June 2026 the lowest investment loan rate is a fixed rate of 5.99%.

Sarah Megginson

Money expert + media spokesperson

Sarah is the author of How to Raise Rich Kids. With over 20 years of experience in property, finance and investment journalism, she is a trusted expert whose insights regularly appear across television, radio and print media, including Sunrise, Channel 7 News, Bloomberg and Yahoo! Finance. She has previously served as managing editor for Your Investment Property and Australian Broker. Her expert advice has been shared in the media over 3,500 times. Sarah holds a Bachelor’s degree in Communications and a Tier 1 Generic Knowledge certification, which complies with ASIC standards.
If you’re interested in a media interview with Sarah, please reach out to our PR team at aupr@finder.com.

Expertise

Home loans
Personal finance
Budgeting and money-saving tips
Managing the cost of living

Experience

Author, How to Raise Rich Kids
Finalist, Women Empowering Wealth Awards 2026 - Communications Professional of the Year
Finalist, Women in Finance Awards 2025 - Thought Leader of the Year
Author, Parenting Report 2026
Author, State of Women's Wealth report 2025
Co-creator of Finder's Financial Fitness Challenge
Co-author and contributor to multiple Finder research reports
Keynote speaker on first home buyer trends for major brands
Contributor and thought-leader with London-based consumer & behavioural insights agency, Canvas8
Annual Finder Innovation Awards judge for home loans, banking and digital disruptor categories
Regular host, MC or panellist for Finder Awards, masterclasses and events
Author, The Power of Two
Editor, 30+ non-fiction books

Education

Bachelor of Arts in Communication: Journalism and Public Relations | Griffith University | 2000-2002
Tier 1 Generic Knowledge certification (RG 146), which meets ASIC's RG 146 compliance standards