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An amount factored in to cover rent, when a borrower is living rent free. Under responsible lending, if you live at home with parents or aren’t paying rent, the lender assumes the worst case scenario. If you were to have a falling out with your parents and need to start renting. Most lenders use $400 – $700 per month as notional rent. Contact us to discuss further and we can advise which lenders take a lower notional rent value.
