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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.

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.


How much can I borrow?

It varies depending on how long you’ve been renting:

  • 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.

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?

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.

In fact, it’s fair to say that when property prices are high, particularly in metro locations, you may well be paying more in rent than you would be in mortgage repayments on a typical loan amount.

This is the reason why some lenders are willing to accept this form of genuine savings.

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.

  • B Hayden

    Hi, I can provide a 3 months rental history and want to borrow 95% using that. It is stated that there’s a policy exception that can allow me to do that. Can I learn more of that?

  • Hello B Hayden, the policy exception is dependent on a number of factors related to your situation and loan needs so please call us on 1300 889 743 to find out whether or not you qualify for the exception.

  • Shaz

    Hi,
    I’m low income $17,000 from work and $36,000 from child support a year. I have $7,000 saved and 6 months rental history at $340 a week. No credit cards or other loans, but $1000 phone bill in collection that I’m paying on my credit file. Can I get a 95% home loan?

  • Hi Shaz,

    The phone bill will be a problem for a lot of lenders. If you can get this removed from your credit file then this give you more options for lenders. You can contact a credit repair company for assistance with this.

    The rental history is great and will really help. The size of your deposit is the main problem. Also some lenders do not accept child support income https://www.homeloanexperts.com.au/unusual-employment-loans/child-support-home-loan/

    I’d recommend that you try to save a 5% deposit or get a guarantor to assist you and then you should be eligible https://www.homeloanexperts.com.au/guarantor-home-loans/

  • Jo

    Hi – my husband and I have been renting for several years, currently paying $550 a week. Have never missed a payment etc. We have only $5000 in savings. Our combined income is around $100K a year. Any chance of us getting approved for a loan?

  • Hi Jo,
    The best option is a guarantor loan as then you’ll pay no LMI and you don’t need a deposit https://www.homeloanexperts.com.au/guarantor-home-loans
    If your parents are unable to go guarantor then the next best option is for you to get a personal loan to top up your deposit https://www.homeloanexperts.com.au/genuine-savings/personal-loan-deposit/
    This works well if you have a high income and few debts. So depending on the amount you would like to buy a home for this may work for you. Your rental history will help us to show that you’re a good borrower and will repay the home loan. In states like QLD where there is a large first home grant this is a good option.
    Otherwise the only option left is to continue to save.

  • Simon

    Hi,

    I earn around 100k per year as I’m on salary and commission and my wife is on 20k per year as we have young children. We have $10,000 in saving and a investment property worth around $360k with $300k owing on the property. We are also first home buyers. We have been renting for 4 years at our current address $490 p/w. We have no other debts, cars are both paid in full. Any suggestions as I would like look at properties around $600k if we can borrow that much, cheers

  • Hi Simon,

    Please input your info as well as a few more additional details into our serviceability calculator for an accurate estimation of how much you can borrow. You’ll also find a few tips and additional info that can help. Here’s the link to the calculator:
    https://www.homeloanexperts.com.au/how-much-can-i-borrow/

    If there’s anything more you’d like to know or discuss then you can enquire online directly through the page or call 1300 889 743.

  • Ben Bowles

    Hi I just wanted some advice I’m looking at buying or building my first home. I can prove paying rent for at least the last 5 years always on time. I earn around $120000 a year as a casual but I’ve been in the same job for over 8 years. My partner earns around $24000 a year. I have a personal loan of $20000 out that I pay $168 a week and car loan of around $45000 left that I pay $300 a week. What I want to know is would it be possible to combine my loans into a mortgage and use my rental history as genuine savings. I could probably come up with a $20000 deposit by selling 1 of my cars. Thanks

  • Hi Ben,
    You’ve got an option of either getting a guarantor loan (best option by far) https://www.homeloanexperts.com.au/guarantor-home-loans
    Or you can sell your car and use this as a deposit. The $20,000 may not be sufficient however that depends on the state that you live in and if you are eligible for first home benefits. If you’re in QLD (which has high grants) and you buy a new home then this would be ok depending on the amount that you’re buying a place for. We’d also recommend that you save as much as possible from here on in.
    Your credit score would be reduced due to the amount of personal debt you have but it is likely that it would be high enough to qualify. https://www.homeloanexperts.com.au/credit-score-home-loan/

  • Ben Bowles

    Thanks for the quick response I’m looking at buying or building in country Victoria for around $350000 to $400000 hopefully they rule that we can draw off our super. Thanks for your time

  • Hi Ben,
    I’d say you’d be right on the border with $20,000 as a deposit AND if you purchased a new home which would mean you get a $10,000 grant.
    If I were you I’d go for saving another $5k to $10k OR talking to your parents about going guarantor.
    It looks like the super accessibility is not on the table any more. We can only hope they review it in the future.

  • Jordan

    Hi,
    Myself and partner have a combined income of $110k per year.
    We currently have debt of around 35k for car and small personal loan. We rent which is $330 per week and have $16k of savings.
    Would we be eligible for 95% loan, if not how much would you recommend to have in savings or could someone gift us another 10k and that be enough?

  • Hi Jordan
    Yes you likely would be eligible for a 95% loan. Your deposit is the main concern so increasing it’s size will help a lot. Considering you’ve saved part of the deposit yourself it’s likely you can qualify for a 95% loan using rent as genuine savings.
    Please contact us if you’d like our mortgage brokers to help you to get approved https://www.homeloanexperts.com.au/free-quote/

  • Sarah O’Brien

    Hi,

    Just looking for a bit of hope. A combined income with my husband of around 120k annually, eligible for FHBG and around 30k saved. No debt and perfect rental history of $560 weekly for around 5 years. What would be our chances?

  • Helen

    Hi my partner and I earn a combined 100k combined and have $20k worth of credit&personal loan debt. We rent at 340pw for the last 14 months. We have $4k in savings. Are there any home loans we would qualify using rent as genuine savings and not having to ask our parents for help (guarantor)?

  • Hi Helen,
    Guarantor is definitely the best option for you, otherwise your maximum purchase price would be very limited. Even in VIC and QLD which have high first home owners grants you’d need a guarantor or to save more of a deposit. https://www.homeloanexperts.com.au/guarantor-home-loans

  • Helen

    If we were to pay off our debts and aim to save 5 per cent of the purchase price would this allow us to borrow without a guarantor?

  • Yes, if you paid off most of your debt (say to $10,000) and saved a 5% deposit in a bank account then you’d qualify for a 95% loan https://www.homeloanexperts.com.au/no-deposit-home-loans/95-percent-home-loan/

  • Helen

    Are there still banks that accept rent as part of genuine savings also?

  • Yes there are. However you still need a deposit. It just means that a gift or sale of your car etc is an acceptable deposit source rather than your own savings.

  • pookie

    Hi, my partner and I have been paying rent for about 4 years, always in credit and never had an issue. we are wondering about a deposit for a small investment unit to get into the property market and also in case we ever need to leave our rental home. We have no real savings because we always dump excess income onto our credit cards then use them to pay bills etc… We have a few different cards with a few thousand available on each still. The calculator on here says we can borrow up to $300k, we are looking at a couple of small units priced at around $250-275k. The biggest hurdle is the deposit. My mother owns her home but is elderly and has long since retired. It is questionable as to whether or not she will guarantor any of deposit amount. What are our best options? thanks…

  • Hi Pookie,
    Guarantor is the best option, however we’d need to assess your rent history and repayment history on your debts to confirm that this is a reasonable option for you. As a general rule for someone in your situation you should owe less than $5,000 on your credit cards otherwise the banks would say you’re living outside of your means.

  • Carmen Milne

    Hi between us we have about 90k a year income and 39k secured loan. ..
    We have about 15 years rental history. No credit cards . Wondering if we could get a loan with rent as savings for $360k. And what sort if deposit we would need. Were entitied to FHG

  • Hey Carmen

    A 15 years’ rental history is great so if you’re borrowing as much as possible, you can borrow up to 97% (95% + mortgage insurance). You’ll need to have a 5% deposit at least. 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 can accept a parental gift, inheritance or even your FHOG as part of this deposit (more listed above on the page).

    Our mortgage brokers specialise in home loans with rent as genuine savings so please feel free to contact one of us by calling 1300 889 743 or simply enquire online for a free quote:
    https://www.homeloanexperts.com.au/free-quote/

  • Carmen Milne

    so does this sound right ? 5% of $365000 is $18250. – $15000 FHG = $3250 deposit needed ?

  • Yes, but do note that you’ll need to have some extra cash in order to bear the additional costs that may be incurred. This can include conveyancing costs, inspections / reports and loan fees.

    We can help find out if you can qualify and what funds you’ll exactly need to meet lender requirements. You can call our office to confirm.

  • Carmen Milne

    ah ok we would be looking ti build the $350567 house is a home and land package. all the online desposit calculators are telling me i need about $28,000 deposit (after the FHG has been applied) ??

  • Well, the minimum deposit requirement is 5% so you should be able to get a loan with that if you can meet lender requirements. The higher deposit amount you got may include other uses such as funds on standby to allow the builder to create the building contract & apply for council approval, or may include LMI too.

  • Leah Calder

    Hello, I have a question about our rent ledger. We have been renting for 10 years our current property for 2 years. Our rent has never fallen behind but not always on time…as in a few days earlier or late depending on pay cycles. Does this make a difference? We have a guarantor and also a small amount of savings plus the first homebuyers.
    My question, is will the banks be looking at this more the fact that rent is a regular payment made.

  • Hi Leah,
    For rent as genuine savings lenders can be quite strict and as a general rule your rent should be on time every time. Not a day late.
    The reason for this is that if you are sometimes late then you are living paycheck to paycheck which means if ever you were to lose your job or something like that then you’ve got no backup funds to get you through it.
    That being said for a guarantor loan we have some lenders who would not require genuine savings at all. So I expect you should be fine. Please call us on 1300 889 743 and ask for one of our guarantor loan experts.

  • Sharon

    HI there, I am a single parent and have been renting and paying $410pw on time for the past 4 years. I have around $5,000 in savings and a small personal loan of around $7,000. I have about $70,000 in my super. is there any banks out there that would allow me to borrow for investment property of around $100,000

  • Hi Sharon,

    You’d need to save a larger deposit to make this work. If you aim for $13,000 then you should be ok.
    Alternatively you can consider a guarantor loan if your parents own property https://www.homeloanexperts.com.au/guarantor-home-loans

  • MItch Gibson

    Hi, my wife and I are looking at buying at property for $610,000. We have the 5% deposit in genuine savings $30,500.

    The property is brand new, so we would also like to add the $10k first home buyers grant on top of our existing 5% cash savings.

    We have been renting for 3 years at $520 a week and have rental ledgers to prove a faultless repayment schedule. We are usually a week ahead.

    We have another $4k that we would like to use to cover moving and legal fees etc and another $6k to keep in the bank as a safety net (as I like to have at least 2 month mortgage/rent payments in the bank at all times).

    We earn a combined $100k per year. I own a business, however the business is 5 years old and I pay myself as an employee and have notice of assessments proving my income from year to year. I also have the company tax returns too.

    We would prefer NOT to have our parents guarantee the loan.

    Does this sound doable?

  • Hi Mitch,
    Yes this sounds doable. The key for you would be to borrow 95% + LMI as opposed to 95% including LMI. By adding the LMI on top of the loan you avoid the need to come up with another $20,000 + in savings and you can buy right now.
    I’ll email you and cc our specialist in low deposit loans.
    Lastly well done on savings a deposit and also it’s clear that you’ve done your research and know what the banks like to see. If you plan on a 2nd business then maybe it should be as a mortgage broker!

  • Rachae Sullivan

    My husband and I have savings of $20000 and 2.5 year history of renting at $500 a week with 2 dependants. And 4 years at 400 a week… Would we qualify to borrow to buy a property at $500000?

  • Hi Rachael
    Yes you would qualify for the genuine savings requirement with lenders that accept rent as genuine savings.
    You would also need to prove ‘funds to complete’ which means that your $20,000 plus any first home benefits is enough to pay for the deposit and any costs such as stamp duty (if applicable, depends on your state).
    If you don’t mind me asking:
    – Are you a first home buyer?
    – Will you receive the first home owners grant?
    – Do you have any more funds to contribute to the purchase?
    – Can you consider a guarantor loan (avoid paying LMI AND you don’t need a deposit) https://www.homeloanexperts.com.au/guarantor-home-loans/

  • Rachae Sullivan

    Thanks for that. I am not a first home buyer. My husband has never bought before but I was under the impression that it wouldn’t matter we still would not qualify.

    We can save more but unfortunately have no options for guarantor has our parents have all passed away.

  • Hi Rachael,
    The challenge for you would be funds to complete. As you will not receive first home benefits you need funds to cover stamp duty.
    If you have high incomes and little / no debt then you can use a personal loan to cover the stamp duty costs and conveyancing costs and this is acceptable to some of our lenders https://www.homeloanexperts.com.au/genuine-savings/personal-loan-deposit/

  • Jessica

    Hi. My partner and I are wanting to buy the house we are currently renting in Tasmania. We have been renting here for 2 months but rented in Vic for 2.5 years and then moved down here. Lived with family until we had found a house. We have never missed a payment always payed on time! The house is selling for 195000 but want to offer 185000. With good rent history my partner has a good job that he’s been in for 3 months now. Last job he was in for 3 years. We have a $10000 deposite just not stamp duty yet. Are we still able to apply for a home loan without having the stamp duty?
    Jess.

  • Hi Jessica
    I’d say that you’d be a little short on funds to complete the purchase. Can you get a small gift from your parents approx $8,000 – $10,000 or so?
    Tasmania has many areas that are not accepted by lenders. Some of our lenders are ok with any location however you must have genuine savings to qualify. So if you saved the $10,000 yourself then you should be fine.

  • Jessica

    Some of the deposite we have is our own saving but most if it is from tax return and selling car.

  • Hi Jess,
    Once you’ve been renting for 3 months in your current place I expect we should be fine. You can then borrow 95% including LMI.
    I’ll email one of our mortgage brokers who specialise in 95% loans and I’ll get them to calculate exactly how much money you need to complete the purchase. That way you have a target to aim for.
    If you’re buying in Launceston or Hobart then we can lend 95% + LMI so you will need a smaller deposit.

  • Michael Frith

    Hi. I am the sole income earner of about 45k a year. Perm part time. My wife is on a disability. I pay $390 a week for the past 12months. I have just under 10k saved and will be a first time owner. Do i have any chance in a loan in nsw. Thanks mick

  • Hi Michael,
    Technically you may be able to qualify in terms of your income type, rental history and deposit source however it’s likely that the amount of your income and deposit will be a challenge.
    How much were you planning to buy a home for?
    Where where you looking to buy?
    Can you source more of a deposit OR can a family member who owns property guarantee your loan?
    How much are you is you’re wife’s income per fortnight?
    Thanks

  • Shannon Golledge

    Myself and my partner are looking to get a loan for around $500,000. This would be borrowing 100% with a guarantor and we are first home buyers so qualify for the stamp duty offset. We have 15k in the bank that we would like to hold onto for security, moving costs and any incidentals. We have been renting our current home for 2 years at $550 per week. Do you think we have enough to qualify for this loan? Joint household income is $175,000

  • Hi Shannon
    Yes based on what you’ve said you should qualify. I’d say your situation would be considered to be strong because of your high income, savings and rental history. With some of our lenders you would be allowed to keep your savings as you have planned.
    The main area we’d want to check is regarding your guarantor. Some lenders have strict requirements about who is supporting you and what their situation is. I’ll email you and cc our guarantor loan specialist and they’ll check this out for you.
    Have a great weekend and good luck with your new home.

  • Jane and Jason

    Hi, my husband and I are on a combined income of $130,000. We have one credit card with $5900 owing on it and no other debts. We are currently renting at $490 per week and have rented for 20 years, never missed a payment. We have $13000 in savings. We are first home buyers in the ACT. I am not sure if my parents would be guarantors. Would we qualify for a home loan ?

  • Ana

    Hello, just wondering if you can help me out!!! My parents are pensioners in Victoria who have been renting over 10yrs! They have a deposit of $30,000 & would like to buy either a small property in a retirement village or a small unit no more than $350000! Im hoping if you can find a solution for them!
    Regards,
    Ana.

  • Hi Ana,
    The problem would be their ability to make the repayments. Unless you were on title and were a part owner of the property and of course assisted with the payments it is unlikely to be possible.

  • Ashlee

    Hi just wanting some information if I would qualify for a home loan, I have been renting for ten years I earn about 45k a year do not have much savings, I have been gifted 30k for a deposit, I’m looking at a house in Bundaberg for $310,000, I currently pay $375 a week rent on the Gold Coast.

  • Hi Ashlee
    Yes you may qualify. We’d need to complete a full assessment to be sure in particular looking at your income and expenses. You can complete this form https://www.homeloanexperts.com.au/free-quote/ and one of our mortgage brokers who specialises in gifted deposits can call you to discuss.