Side hustles & second income: can they help you borrow more?

With the cost of living still biting and property prices holding firm, more Australians are turning to side hustles, second jobs, and additional income streams to boost their borrowing power.

But here’s the reality: while extra income can help you borrow more, it’s not always as simple as earning more = borrowing more.

Let’s break down how lenders actually view side income—and how to make it work in your favour.

Do side hustles actually increase borrowing power?

Short answer: yes—but only if they meet the lender’s criteria.

Lenders assess your borrowing capacity based on your total income minus your expenses. That means any additional income can improve your serviceability—if it’s consistent, reliable, and proven.

In fact, some lenders may include up to 70–80% of secondary income (like a second job or rental income) in your borrowing calculations.

That could mean a noticeable boost—sometimes tens of thousands of dollars in extra borrowing capacity.

What counts as a “side income”?

Side income isn’t just a second job. It can include:

• Part-time or casual work
• Freelance or contracting income
• Gig economy work (Uber, Airtasker, Etsy, etc.)
• Rental or boarder income
• Overtime, bonuses or commissions

The key isn’t what the income is—it’s how stable and verifiable it is.

The catch: not all income is treated equally

Here’s where many borrowers get caught out.

Lenders are typically more conservative with secondary income because it’s seen as less stable than your primary salary.

That means:

• You may only get 50–80% of that income counted
• Some lenders won’t count it at all if it’s too new
• Irregular or “cash” income is usually excluded entirely

In some cases, even strong side income may only have a small impact on your borrowing power if it doesn’t meet policy requirements.

How long do you need a side hustle for it to count?

This is one of the biggest factors.

Most lenders want to see:

• 6–12 months minimum for a second job
• 12–24 months (and tax returns) for self-employed or freelance income
• Consistent earnings over time

If your side hustle is brand new, there’s a good chance it won’t be included—yet.

What lenders are really looking for

It’s not just about earning extra money—it’s about proving you can sustain it.

Lenders will assess:

1. Consistency
   Regular deposits or payslips matter more than occasional spikes.
2. Documentation
   Tax returns, BAS statements, payslips and bank statements are key.
3. Sustainability
   If you’re working 70-hour weeks, lenders may question whether that’s realistic long-term.
4. Industry alignment
   A second job in the same field can sometimes strengthen your case.

When a side hustle can hurt your application

It’s not all upside.

In some scenarios, additional income can actually work against you:

• Business losses may reduce your overall income
• Inconsistent earnings can be ignored or averaged down
• Poor documentation may mean the income isn’t counted at all
• New ABNs or undeclared income won’t be used

The rule of thumb: if the lender can’t verify it clearly, they won’t rely on it.

Real talk: how much difference can it make?

A side hustle can be the difference between:

• Getting approved vs. declined
• Buying now vs. waiting longer
• Affording your preferred suburb vs. compromising

But it’s rarely a silver bullet.

Think of it as a supporting boost, not the foundation of your borrowing power.

Tips to maximise your borrowing with a second income

If you’re planning to use a side hustle to strengthen your application:

• Keep it consistent – regular income beats big one-off months
• Declare everything properly – it must show on tax returns
• Separate your finances – especially for ABN income
• Give it time – longevity builds lender confidence
• Avoid overextending yourself – sustainability matters

The bottom line

Side hustles and second incomes can absolutely help you borrow more—but only when they’re stable, well-documented, and proven over time.

If you’re relying on extra income to get into the market, the strategy isn’t just to earn more—it’s to structure that income in a way lenders will actually accept.

That’s where good advice can make all the difference.

If you want to understand how your income (including side hustles) stacks up, speaking with a lending specialist can help you identify which lenders are more flexible – and how to position your application for the best possible outcome. Get in touch with one of our local specialists today.

This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.