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.
Please note that the banks will not consider a rental reference letter from your landlord as proof of genuine savings. Only a rental reference letter from the Property Manager can suffice for this purpose.
Rental reference template 1 (Genuine savings)
Use this letter template if you are required to provide evidence of your rental history to your bank. Some lenders can use your rental history as genuine savings.
1/1/2010
To whom it may concern,
Re: Rental reference – John Smith
We wish to confirm the following:
- Tenant name(s): John Smith
- Property address: 1 George Street, Sydney NSW 2000
- Commencement date of lease: 1/1/2007 to present
- Current rent: $450 / week
- Payment history: All payments have been on time during the last 12 months
Should you require any further information please contact me on 02 9000 0000.
Regards,
(SIGN)
Paul Adams
Property Manager
1 Pitt St Sydney NSW 2000
Ph 02 9000 0000
Rental reference template 2 (General use)
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 $1,470 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
- Be signed
- Contain the name of the person who signed the letter.
- Contain the full name of tenant/s as per tenancy agreement.
- Include the address of the tenanted property.
- Include the amount of rent paid per cycle (e.g. weekly, fortnightly, monthly).
- Confirm an acceptable 12 month rental repayment history.
- Confirm the commencement date of tenancy.
- Be on a letterhead with the company details of the property manager.
Do you need help with your home loan?
Enquire online if you need the services of a mortgage broker to help you get your home loan approved with your rental payments as proof of your capability to pay off a home loan.
