With the cost of living in 2025 continuing to rise, more Aussies are choosing to rent a room rather than take on an entire house or apartment. It makes total sense, it’s more affordable, often more convenient, and let’s be honest, sometimes it’s just nice to have a bit of company around!
If you’re thinking about buying a home and wondering, “Could I rent out a spare room to help with costs?”, you’re not alone. And now, thanks to a rare and very welcome lending policy, renting out a room could actually help boost your borrowing power.
So, what is boarder income?
Boarder income refers to money received from renting out a bedroom in your owner-occupied home to a boarder or boarders. It includes regular payments for the use of a bedroom and shared household facilities like the kitchen, bathroom, and living areas.
A boarder is defined as someone who pays regular board to live in your home — this could include:
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✅ Housemates or flatmates (e.g. someone you found via a room-share site)
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✅ Students, including secondary students (not your dependants) or tertiary students
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✅ Other individuals, such as extended family, adult children, or friends
💡 Note: A spouse or partner living with you is not considered a boarder.
How can boarder income help with your home loan?
One of our lenders now accepts up to $150 per week of boarder income to be used in your home loan application. This can:
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🔓 Slightly increase your borrowing capacity — potentially helping you secure the home you really want
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💰 Give you more confidence with repayments, knowing there’s regular income coming in to help
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💡 Be used without needing a formal lease agreement — just a simple stat dec is enough
It’s worth noting that there are some restrictions. For example, only one boarder arrangement can be used per application, and this policy isn’t available for certain scenarios like bridging loans or investment-related applications.
But here’s some more good news:
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🏡 First home buyers using the First Home Owner Grant or Home Guarantee Scheme can also use boarder income in their application
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🏘️ Rental income from a granny flat or self-contained dwelling on your property can be used in conjunction with boarder income
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👨👩👧 Guarantor support loans like family pledge or property share are also eligible
Why this matters
In today’s market, every bit counts, and this kind of policy could be the difference between settling for a property or securing your dream home. It’s rare, it’s flexible, and it could make a real difference in your journey to homeownership.
Want to find out if this could work for you?
📞 Conditions apply. Speak to a Mynt Lending Specialist to get the full details and see if you’re eligible.
