A major lending shift from the Commonwealth Bank may reshape the entry point for first-home buyers.

Bringing ripple effects for residential property investors.

In a policy update, the bank will now factor in “boarder income” when assessing home loan applications, provided the buyer intends to live in the property and rent out a room to a friend or relative.

Previously, rental income from roommates wasn’t recognised for loan servicing. Under the new rules, buyers can count up to $150 per week from one boarder toward their income, boosting their borrowing capacity by as much as $50,000.

This lending change, while not available to investors, is expected to help more first-home buyers gain a foothold in the market.

This move is particularly significant for those leveraging government support such as the First Homeowner Grant, guarantor loans, or Home Guarantee Scheme.

It could increase both loan affordability and the number of rooms available in the rental market—especially in high-demand inner-city areas.

While investors themselves can’t use the policy directly, the knock-on effect could influence the broader residential property investing landscape.

More owner-occupiers entering the market may heat up competition in certain suburbs and increase shared housing options, which could pressure rental yields in some areas.