How Banks Let You Borrow More with Extra Income (Australia 2025)
Updated 2 Nov 2025 · 6–8 min read
Quick answer: Banks like CBA, NAB and Westpac will often count up to 80% of extra income—from renting out a room, short-stay bookings, or a verified side job—towards your borrowing power. This can lift your approved amount by $30k–$70k or more, provided the income is regular and proven.
1. Why Extra Income Matters in 2025
With living costs and rate buffers staying high, many Australians are hitting borrowing limits. The good news: most banks now recognise secondary income—such as rent or part-time work—when it’s consistent and documentable. Showing extra cash flow can bridge the gap between what you want and what the calculator says you can afford.
2. How Major Banks Treat Extra Income
| Lender | Income Counted | Requirements |
|---|---|---|
| Commonwealth Bank (CBA) | Up to 80% of rent or boarder income | 6–12 months of statements or lease agreement |
| Westpac | 75–80% of long-term rent | Verified rental appraisal or consistent deposits |
| NAB | 80% of rent, 50–70% of short-stay income | Evidence of ongoing bookings |
| ANZ | Case-by-case for room or short-stay income | Regular transaction history required |
3. Example: Renting a Room
Imagine you earn $90,000 p.a. and rent a spare room for $250/week ($13,000 a year). If your lender counts 80%, that adds $10,400 to your assessable income—potentially increasing borrowing capacity by $55,000–$65,000. That could be the difference between a unit and a small house.
4. Airbnb or Short-Stay Income
Short-stay income is assessed more cautiously. Lenders usually accept 50–70% of verified Airbnb or Stayz earnings if you can show 6–12 months of bank deposits or tax records. Keep a separate account for your short-stay bookings—it makes verification much easier.
5. Side Jobs and Freelance Income
- Second jobs: most banks accept them after 6 months continuous employment and two pay cycles.
- Freelance or ABN income: typically shaded by 20–30% unless two years of returns are provided.
- Extra income must be verifiable via payslips, bank deposits or tax returns—no cash or irregular side gigs.
6. What This Means for Borrowing Power
- Room rental ($250/week) → +$50–70k borrowing power
- Airbnb short-stay ($400/week) → +$30–45k borrowing power
- Part-time job ($10k/year) → +$40–60k borrowing power
Exact results vary between lenders, but all rely on verified, ongoing income streams.
7. Practical Steps to Get Credit
- Use a separate account for rental or side-income deposits.
- Keep records—leases, booking reports, tax summaries.
- Disclose early: brokers can present your case proactively with supporting documentation.
- Re-run figures with our Borrowing Power Calculator to test the impact of extra income.
Tip: Even modest, stable side income can add serious weight to your application—especially if you’re near a deposit or servicing threshold.
General information only — not financial advice. Income acceptance and borrowing capacity vary by lender and policy. Always confirm with your bank or broker.