Home Loan Variable: 5.94% (5.95%*) • Home Loan Fixed: 5.79% (6.39%*) • Fixed: 5.79% (6.39%*) • Variable: 5.94% (5.95%*) • Investment IO: 6.14% (6.58%*) • Investment PI: 5.99% (6.61%*)
CAN RENT BE USED AS GENUINE SAVINGS?
Getting into the property market is difficult when you’re paying rent because you’re still required to save a 5% deposit towards a new home. While the deposit is still usually required, many lenders will accept your rental history as a substitute for your ‘Genuine Savings‘, meaning that any required deposit may be non-genuine savings. This recognition of your timely rent payments equal to an amount of the 5% genuine savings deposit is limited to a number of banks on our panel (not all banks will accept rent as a means of demonstrating your genuine savings record).
You may be able to borrow up to 95% of the property price, and up to 97% in some cases (including LMI).
Qualifying
You may demonstrate your ability to save a 5% deposit (what would otherwise be ‘Genuine Savings’) by way of a Rental Reference Letter or Rental Commitment Letter. The letter will assist towards your character, your capacity, your repayment history, your creditworthiness as a good tenant with continuous long-term rental repayments over the last 12 months.
What Does A Rental Commitment Letter Need To Show? A Rental Commitment letter from your Property Manager or Real Estate Agent will be required to provide the following:
- Full name of tenants as per tenancy agreement.
- The Address of the tenanted property.
- The Commencement date of tenancy (minimum 3 months term to apply).
- The amount of rent paid per cycle, e.g., Weekly, Fortnightly or Monthly.
- Confirmation of 3 months satisfactory Rental payment History.
You will still be required to demonstrate your strong financial position by way of a good credit file.
Call us to Learn More
You should call us for a quick consultation to get a better understanding of your options.
RELATED FAQS:
A Risk Fee is a once-off charge payable by you when the amount of money you borrow for the purchase of a home or asset if higher than that lender’s acceptable LVR. For a home loan, this is usually 80% of the value of the home (80% LVR) …
Most lenders have moved away from the no-deposit home loan, although there are a few products available with very strict criteria. Excluding the no-deposit opportunities made available to the medial industry and other …
When you apply for a home loan, a lender will take a large number of factors into consideration when deciding whether or not to approve your application. The Serviceability assessment determines if you can comfortably “service” the loan repayments after considering all of your …
SHARE THIS FAQ
❯ Home Loans ❯ Car & Equipment Finance ❯ Mortgage Calculators ❯ FAQ ❯ Resources ❯ Education ❯ Insurance ❯ Real Estate ❯ Business ❯ Review Bank Products ❯ Search BSB Numbers ❯ Social Media Archive ❯ Video Archive ❯ Downloads ❯ About Us ❯ Finance Team
The comparison rate is calculated on a secured loan of $150,000 with a term of 25 years with monthly principal and interest payments. WARNING: This comparison rate is true only for examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Important Information: Applications are subject to credit approval. Full terms and conditions will be included in our loan offer. Fees and charges are payable. Interest rates are subject to change. Offer does not apply to internal refinances and is not transferable between loans. As this advice has been prepared without considering your objectives, financial situation or needs, you should consider its appropriateness to your circumstances before acting on the advice.
© LOAN SAFARI ABN 94 143 496 100 ACL 384704 | PRIVACY • TERMS • DISCLAIMER