Moves To Max Capacity -
The New Way First Home
Buyers Can Borrow More
Lending criteria are constantly evolving - and staying ahead of policy updates can make all the difference in home loan strategy. A recent change by CBA is now giving many first home buyers an unexpected edge in boosting their borrowing capacity.
In a significant move, CBA has revised its servicing policy to include boarder income in borrowing power calculations for owner-occupiers. This means individuals purchasing a home to live in - not for investment - may now be able to borrow significantly more if they have someone living with them and contributing to the household costs.
WHAT'S CHANGED
Up to $150 per week of rent from a single boarder can now be counted toward serviceability
Example: A borrower earning $100,000 could see an increase of $45,000 in borrowing capacity
ELIGIBLE SCENARIOS INCLUDE
- Family Security Guarantee
- FHOG applicants
- Home Guarantee Scheme (HGS) participants
- NO Income Caps.
- Increased Property Caps (e.g., $1.5M for metro Sydney)
EXCLUSIONS
- Bridging loans
- Clients who own investment property
- Applications tied to investment purpose
DOCUMENTATION
CBA requires a statutory declaration, with a new dedicated form to support the submission.
WHY THIS MATTERS
With shared living arrangements now recognised in lending assessments, many first home buyers can unlock higher capacity than previously possible.
WHAT TO DO NEXT
If a prospective buyer lives with someone who contributes to their living expenses, they may now qualify for a larger loan than expected. We can assess eligibility and package the boarder arrangement for approval.
* Bank policies are subject to change at any time
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