For first-home buyers trying to get a foot on the property ladder, every dollar counts—especially when it comes to borrowing capacity. In a welcome move, the Commonwealth Bank (CBA) has introduced a policy change that allows borrowers to include boarder income as part of their loan assessment.
So, what does that mean? If you’re planning to live in the home you’re buying and rent out a room to a friend or family member, CBA may now consider a portion of that rental income when calculating how much you can borrow.
This update is a game-changer for many buyers, especially in today’s market where property prices remain high and every little bit helps. The ability to show additional income—up to $150 per week—can make a big difference, potentially increasing borrowing capacity by tens of thousands of dollars. It’s a clever way for buyers to make home ownership more achievable without overextending financially.
Who’s Eligible?
This policy applies to owner-occupied loans only, so it’s designed for people buying a home to live in—not for investors. It’s also available to those using a guarantor, taking advantage of the First Homeowner Grant, or accessing the Home Guarantee Scheme. Just note, borrowers will need to formally declare the boarder income and meet a few criteria to have it counted.
Why It Matters
With living costs rising and lending standards remaining tight, this kind of flexibility can give first-home buyers the edge they need to secure their ideal property. At Madd, we’re seeing more and more clients exploring creative yet responsible strategies to boost their buying power—and this update from CBA is a great example of banks adapting to real-world scenarios.
Thinking of buying your first home and wondering if boarder income could help you? Chat with the team—we’ll walk you through the ins and outs and help you make the most of every opportunity.
