It will not matter if it is or is not reporting. When you apply for a loan (Your newer house) you will legally need to disclose that you are responsible for the debt.  So yes, it will go against your proposed borrowing limit. Additionally, banks and financial institutions will not count rental income as fully weighted. This means, it is not guaranteed monthly income so you could be hurt even more on your borrowing limit. AS always YMMV dependent on your financial institution's policys and your loan officer.