Rental reference letter
Why might a bank need a rental reference letter?
A rental reference letter is a letter from a landlord or property manager that confirms the amount of rent you pay for the property you are residing at.
By providing the bank with a rental reference letter, you are able to prove to them that you have been paying rent on time and have not missed any payments. By doing so the banks will have the impression that you are capable of making repayments promptly on the due date and that you will be able to do the same thing for a mortgage.
Rental reference template 1
To whom it may concern,
Re: Rental reference – John Smith
We wish to confirm that John Smith has been a tenant of the property at 1 George Street, Sydney NSW 2000 from the 2nd February 2007 to current date. The rent paid is $470 per month.
John makes prompt rental payments and has never missed a payment. I feel confident that John is able to make repayments on a home loan on the due date.
Regards,
(SIGN)
Paul Adams
Property Manager
1 Pitt St Sydney NSW 2000
Ph 02 9000 0000
Rental reference template 2
To whom it may concern,
This letter is to verify that John Smith has been a tenant in our rental unit located at 1 George Street, Sydney NSW 2000 from 2nd February 2009 to current date.
The monthly payment is $470 and has always been paid on time. This tenant has proven to be an upstanding individual and has shown respect to the property and other tenants.
If I can assist you with further information regarding John Smith’s residency at my property, please feel free to contact me on 02 9000 0000.
Regards,
(SIGN)
Paul Adams
Property Manager
1 Pitt St Sydney NSW 2000
Ph 02 9000 0000
Bank requirements for a rental reference letter
Australian lenders have strict requirements for letters confirming the rent you pay for a property, and will often ask for a letter to be amended if it does not meet their requirements.
Your rental letter should be:
- Dated
- Signed
- Contain the name of the person who signed the letter
- Be on a letterhead with the company details for the property manager or landlord. (Note that private landlords may provide a letter without a letterhead, however their name and signature must be on the letter to be accepted by the banks).
Do you need help with your home loan?
Enquire online if you need the services of a mortgage broker to help you get your loan approved with your rental payments as proof of your capability to pay off a home loan.
