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Note: You still need a deposit but it can come from a source other than savings such as a gifted deposit. Read on to find out more.

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  • Borrow up to 95% of the property value.

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Trying to get out of the rental rate race and into the property market can be really tough when you need to save a 5% deposit just to qualify for a home loan.

By choosing a lender that accepts rent as genuine savings, you can prove your capacity as a borrower instead of with your own regular savings.

Call us 1300 889 743 or complete our free assessment form and we can let you know if you qualify for a rent as genuine savings home loan.

How does it work?

To be clear: you still need a deposit but if you have a solid rental history, some lenders will take this as proof that you have the ability to put money on a regular basis, just like saving a deposit with regular deposits into a bank account.

Some lenders will accept rent in lieu of genuine savings because your ability to pay rent on a fortnightly or monthly basis is reflective of your ability to meet your mortgage repayments.

Your actual borrowing power will vary depending on how long you’ve been renting for:

  • 12 months rental history: Borrow up to 97% of the purchase price (LVR) inclusive of Lenders Mortgage Insurance (LMI).
  • 6 months rental history: Borrow up to 95% LVR.
  • 3 months rental history: A policy exception that allows you to borrow up to 95% LVR.

What if I’m renting privately?

All other lenders require that you to have been renting via a licensed real estate agent but there is an exception to this requirement.

If you’ve been renting for more than six months, have a formal, legally binding tenancy agreement in place and can prove your rental payments with bank statements, we can help you to get approved.

Call us on 1300 889 743 or fill in our free assessment form today.

What if I’m renting with other tenants?

The lease should be in your name alone or both you and your partner. You may still qualify if you are renting with other people, as long as you can prove a track record of prompt rental payments with your bank account statements and your name is listed on the tenancy agreement.

Do the rental payments need to match the minimum deposit requirement?

No. Banks won’t be looking at your complete rental history and adding your rental payments up to see if they equal 5% of the loan amount you’re borrowing.


How do I qualify?

Rental ledger from your real estate agent

In order to qualify for a rent as genuine savings mortgage, you need to show with a rental ledger from a licenced real estate agent that shows you’ve been making your rental repayments in full and on time for at least 12, 6 or even 3 months.

You can find a rent ledger or rental reference letter template on our website which you can provide to your property manager to complete.

A 5% deposit

As long as you can show that you’ve been paying rent on time and in full for a minimum of 3 months, some lenders will accept the following as part of your deposit:

  • Gifted deposit from your parents: The gift needs to be in your account and you need to also provide a signed gift letter from parents explaining that the gift is non-refundable.
  • Bonus/dividend/commission income: All you need to provide is a payslip and bank statement evidencing the payment/s.
  • Inheritance: Provide a letter from the Executor confirming the amount and date that the funds will be received.
  • Sale of a non-real estate asset: This can include the sale of car, furniture, artwork or other items. You just need to provide evidence confirming the details of the asset that you sold.
  • Tax Refund: Simply provide a copy of your Notice of Assessment showing the tax refund amount.
  • First Home Owners Grant (FHOG): As long as you qualify for FHOG in your state, banks will accept this as part of your deposit.
  • Personal loan: This is a policy exception with some lenders.

Strong financial position

That means your credit file should be clear of defaults, you need stable employment, and any unsecured debt such as credit cards or personal loans should be minimal.


Does rent need to match the proposed mortgage repayments?

Not necessarily. Although there isn’t specific policy around this, some lenders may require that the current amount that you’re paying in rent is somewhat “comparable” to your fortnightly or monthly mortgage repayments.

This has more to do with your “capacity” or ability to afford the mortgage and banks may place more scrutiny on this if your application is tight in other areas such as your income or employment status.

Again, this isn’t strict policy so it’s best to speak to one of our mortgage brokers so we can properly assess your overall financial situation and select the lender that’s right for you.


Are there other non-genuine savings solutions?

Whether you’re currently renting or not, you can avoid the genuine savings requirement by asking your parents to provide you with a gift or by asking them to act as guarantor for your home loan.

With a guarantor, not only to avoid the genuine savings requirement but:

  • You don’t need a deposit.
  • You can borrow up to 100% plus the costs of completing the purchase including solicitors fees and stamp duty.
  • You can avoid LMI which can literally cost you thousands of dollars upfront.
  • You can get same interest rates as if you were applying with a 5% deposit.

Do you need a rent as genuine savings home loan?

Our mortgage brokers are specialists in non genuine savings and no deposit home loans!

Discover if you qualify for a rent as genuine savings home loan by calling 1300 889 743 or by filling out our online enquiry form today.

  • Steve

    I’m staying in rent currently with my de facto partner. We’re planning to buy a property but I’ll apply in my name only. I don’t have enough savings so I’m planning to use rent as genuine savings. The rental agreement is in our both names, will it be an issue?

  • Thanks for the question Steve.
    Having the rental agreement in both your names shouldn’t be an issue for the bank. Are you planning on borrowing as one applicant but having two names on the property title? This MAY be an issue with some lenders. Those that do accept this structure require that all parties be joint and severally liable for the mortgage. Check out this page for more info: https://www.homeloanexperts.com.au/home-loan-articles/one-borrower-two-owners/

  • Thanks for the question Amie.
    It’s great that you’ve managed to put some money aside as a deposit. Good move!
    We have helped many borrowers returning to work and borrowers who currently work part-time. Your income to liability ratio looks a bit tight but, without getting a more complete picture of your situation, it’s difficult to provide guidance on your home loan borrowing power.
    The good news is that we may be able to present this as a favourable purchase with SELECT lenders if your parents are selling the property to you below market value: https://www.homeloanexperts.com.au/property-types/purchase-below-value/
    This means you may be able to buy your Mum and Dad’s property with no deposit.
    In terms of using mortgage repayments as genuine savings, we may be able to present this to the bank as long as you can provide 3 months bank statements showing regular repayments on the home loan.
    It’s best you call us on 1300 889 743 or complete our online enquiry form (https://www.homeloanexperts.com.au/free-quote/) so we can assess your situation in full – only a few lenders will accept favourable purchases with no deposit. Your situation is quite unique.
    Hope this helps!

  • Chris

    Hi, I earn 90K per year, have 45K in savings. 2 children under 5. My partner has had her identity stolen and is still getting her credit score etc sorted out (it is somewhere in the 300’s) – mine is 970. So – looking to get a home loan (around $500K) and put the house in my name until we are 100% sure there is no risk with further issues for her. She pays me $1000 a week toward bills, rent etc etc and has done for around 5 years (and we have bank records reflecting it). Can I count that money paid to me as an “income” without including her on the application? (guessing her credit would pretty much ruin chances to get a loan if she was named on it). Both our names are on the current rental agreement – we have been at the same address for 7 years. . . . . Appreciate any input / thoughts?

  • Iris

    Hi, I’m 25 y/o, single and making $70,000 p.a. I’m looking to buy my first apartment somewhere around the $300,000 range (haven’t decided on a property yet). Now a lot of my friends have suggested that I save a 20% deposit instead of 5%, otherwise I’ll be paying thousands in LMI. Wouldn’t the extra rent paid during the time it would take to save up a 20% deposit be greater than the cost of LMI?

  • Hi Iris,
    Saving 20% of the purchase price means there will be no Lenders Mortgage Insurance (LMI), and that saves you thousands of dollars. However, you make an excellent point regarding extra rent paid during that period. Please use our rent vs buy calculator: https://www.homeloanexperts.com.au/mortgage-calculators/rent-vs-buy-calculator/ to figure out whether you’re better off buying now or saving more. This is particularly important for investors because holding off buying a property to minimise the upfront costs could see you miss out on a great investment opportunity. Property is long-term game not a short-term win.

  • Denny

    Hi, we’ve been renting for the last 15 years and never missed any payments in rent or car repayments. I’m currently on pension and my partner’s on parent payments. We’ve never owned a property and we’re looking to use the first home buyers grant as the deposit for a $260,000 house in Tasmania. Will we need more cash?

  • Hi Denny,
    You should be able to use the first home owners grant as part of the deposit. You’d need a minimum of 5% of the purchase price ($13,000) plus additional funds to complete the purchase of the property such as stamp duty, conveyancing fees, legal fees, registration fees etc. For a more detailed breakdown of the additional costs involved please use our purchasing costs calculator here: https://www.homeloanexperts.com.au/mortgage-calculators/property-purchase-costs-calculator/

  • Chris

    Hi Home loan experts . . . I seem to have been missed in your replies :)

  • Abraham

    Hi, I’ve been renting with my roommate for 5 years. Our rental lease is due to be renewed in May of this year. I’ll be looking to buy my own place at the end of our lease. Is shared accommodation history acceptable to the banks to prove rental payments as genuine savings?

  • Hi Abraham,
    If you have a formal, legally binding tenancy agreement (rental lease) with your name listed as one of the tenants in place and can prove your rental payments with bank statements, we can help you get approved. You can use a rental ledger or you can provide our rental reference letter template: https://www.homeloanexperts.com.au/home-loan-documents/rental-letter-prove-your-rent-payments/ to your property manager to complete.

  • Chris

    Hi Again Home loan experts, I seem to have been missed in the replies yet again? Any chance I can get some feedback, thoughts, ideas?

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