If you are able to provide proof of paid rental history as an alternative way to show the deposit saved maybe this loan product will enable you to purchase your home sooner.

Borrowing 95% of the loan amount from a lender will require you to have the required 5% deposit saved as Genuine Savings over the 3 month period, which you may be eligible to qualify with a Rental Reference Letter or Rental Commitment Letter as the lenders required genuine savings.

You will still need to show the 5% deposit, which can be a gift from a family member or a combination of saved funds and the First Home Owners Grant, whichever way you contribute the required 5% of funds plus enough funds to cover the government fees and costs you need to demonstrate what lenders required as Funds To Complete the purchase since the lender will provide the funds 95% as a loan at the settlement date.

A few lenders will allow these deposit types to made up the 5% deposit;

+ Tax Refunds

+ Commissions

+ Bonus

+ Dividends and Shares

Other types of acceptable deposits like Inheritance and Non-Real Estate assets lenders may require a 10% deposit for these types of deposits.

Unacceptable Deposit Types held for less than 3 months may be ;

+ A money or financial Gift

+ A sale of assets, other than real estate property

+ First Home Owners Grant (FHOG)

+ Borrowed unsecured funds (e.g. A Personal Loan)

+ Inheritance

+ Builder rebate or vendor rebate incentive

+ Savings or funds held in an account, not in your own name.Or held in an account in two names but only one name is the borrower or held in a company, trust or business name for you or the borrower (Loan Applicant).

A Rental Letter for genuine savings, Rental Commitment or Rental Reference letter is a letter provided by your licenced property manager to confirm the amount of rent you have paid for the property you are currently tenanting. 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.

The rental commitment letter will indicate to the lender that you have made rental payment on time and the amount of rental paid maybe a similar amount for the proposed loan repayment since you will need to show your capacity to repay the mortgage as a credit repayment commitment.

We have a number of lenders who work on a minimum of 3 months to a preferred 12 (Twelve) months continuous rental history in a single-tenanted property, however, we do have lenders that will allow multiple property rental histories as long as the rental term dates coincide with moving in and out of tenanted leased properties.

A tenancy agreement can help to show the rental amount paid and commencement dates, however, the lender is looking for your repayment history and character as provided by the licensed property manager.

Below, we provide details and an example of a Rental Commitment letter for you to request from your Property Manager or Real Estate Agent with these requirements;

+ 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

An example letter style is as below:

[ Date ]

To Whom It May Concern,

Re: Rental Commitment for [ Name i.e. Jackie Chan ]

We are the Licensed Property Manager for the tenant/s [ name/s ] as they appear in the tenancy agreement.

• The Address of the tenanted property is [ Address ]
• Commencement date of tenancy [ Date ]
• The amount of rent paid per rental cycle (i.e. weekly, fortnightly, monthly) [ $ Amount ]
• [ Confirmation of satisfactory rental payment history i.e., The weekly rental payments are $470 and the tenants have always paid on the due date. The tenant/s has always shown respect to the property and has shown to be a reliable tenant/s.

If you have any questions, please call us on the enclosed contact numbers.

Yours Truly,

[ Signed ]

[ Name ]

Property Manager

Please Note: Property managers’ letterhead must show the following;

+ Property managers business name,
+ Business contact numbers,
+ Business address, and
+ ABN

Lenders have strict credit criteria on Genuine Savings requirements and if any details are not shown or not disclosed they will request for these items to be provided or amended. Therefore we encourage you to ask the property manager to assist by providing these requirements to speed the loan processing time frames.

Making that decision whether to continue renting or to buy a home or property, you need to calculate your current rental payments against the proposed loan repayments.