A no genuine savings solution

A tenant rental history form confirms how much you pay in rent and demonstrates your ability to save money.

If you’ve been paying your rent on time and in full, you may actually be in a position to borrow anywhere between 90-95% of the purchase price.

However, not all rental history letters will be accepted. Most lenders will only accept a rental reference letter from your property manager and not from a landlord.

Rental history template

Most lenders will accept the following rental declaration letter template from your real estate agent:


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.



Paul Adams
Property Manager

1 Pitt St Sydney NSW 2000
Ph 02 9000 0000

What is it generally used for?

Use a rent statement letter or landlord reference letter if you can’t prove you’ve saved a deposit.

When borrowing more than 90% of the purchase price, a lender will need to be satisfied with your ability to make repayments.

Generally, you can demonstrate this by showing proof of regular savings over a period of 3 to 6 months.

This is commonly in the form of contributions to a savings account.

These savings will need to add up to 5% of the purchase price plus the costs of completing the purchase.

Otherwise known as ‘genuine savings’, it’s a policy for almost all Australian lenders and they tend to be quite strict on this requirement.

That means if you’ve been gifted a deposit from your parents or recently inherited a large sum of money, banks will still need to see evidence that you’ve saved 5% of the purchase price yourself.

Luckily, there are lenders out there who will consider a verification of retnal history from your real estate agent or property manager in place of genuine savings.

This will allow you to borrow up to 95% of the purchase price.

On top of that, you can still can get the same competitive interest rates as a standard home loan.

Some lenders will even accept 3 months rental history backed up by a rental reference letter if you can’t show genuine savings.

Bad credit

A rental reference letter can be used to build a stronger application if you have a poor credit score and can’t prove that your deposit has come from regular savings.

Some lenders will accept your situation but they will want to see proof that you have the ability to make your mortgage repayments.

Providing a 12 month tenant rental history form is a good indication of your capacity and can help mitigate your bad credit history.

If it’s a private rental (not through a real estate agent), the lender may also ask for 6 months bank statements showing rent paid.

For example, you could have a 20% deposit but if you’re discharged bankrupt and you can’t prove genuine savings, you may get declined unless you can provide a history of rental.

Partial genuine savings

In situations where you don’t quite have 5% in genuine savings, some lenders will accept a proof of rent payment letter so you can borrow up to 95% of the purchase price.

What if I don’t have a rental reference letter?

If you don’t have genuine savings and can’t provide a rental reference letter, we may still be able to get your loan approved if you have:

  • A 10% deposit: With such a large deposit, some lenders will waive the genuine savings requirement and you can still get a great deal on your home loan.
  • An otherwise strong case: If you’re in a strong situation apart from meeting the genuine savings requirement, we can still help you borrow at 95%. Conditions apply and your interest rate may be a bit higher depending on what lender we go with.
  • A guarantor: If your parents are in a position to use their property as security for your home loan, you can borrow up to 105% of the purchase price without genuine savings.

How do I get a rental reference letter?

You can contact your real estate agent and ask for both a rental reference letter and a rental ledger.

While a rental reference letter is more of a declaration from your property manager, the rental ledger will provide a clear run down of the rent you’ve paid over a 12 month period.

This includes how much rent was paid and the date it was paid to the landlord. It’s sort of like a bank statement but for your rent.

It’s preferable that you provide a rental letter over a ledger purely because the ledger has more information on it that the banks can use against you when assessing your application.

For example, if you were late with rent on just one or two occasions, a lender will be able to see this on the ledger and it won’t look good for you as a borrower.

What if I don’t have a property manager?

If you’re renting but you didn’t go through a real estate agent (you’re just in an arrangement with the landlord), the following template will suffice.

However, you’ll need to provide it in conjunction with 12 months (some lenders will accept 6 months) bank statements showing clearly rent being deducted on a weekly basis:


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.



Paul Adams
Property Manager

1 Pitt St Sydney NSW 2000
Ph 02 9000 0000

Why do banks ask for this document?

Lenders will ask for a signed tenant rental history form if you can’t prove genuine savings.

The reason that this letter is a good indication of your capacity is because, when renting, a portion of your income is being deducted from your bank account on a regular basis to pay rent.

For some lenders, this is the same as saving that amount every week in a savings account.

Perfect rent over a 12 month period is also an indication that you’ll not miss or default on your mortgage repayments when you get a loan.

It’s important to note that in a low interest rate environment and, depending on the property price, mortgage repayments can be about the same or less than paying weekly rent!

How do I make sure the letter isn’t rejected by the lender?

Having a good rental history isn’t always enough to get your home loan approved.

Most banks have complicated lending policies which exclude some tenants such as:

  • Sub-tenants (not on the lease).
  • Privately-rented properties (not via a real estate agent).
  • If you do not have a 12 month history. There is an exception to this, with one of our lenders accepting 3 months rental history instead.
  • If other people are on the lease with you (share accommodation).
  • If you have moved house during the last 12 months.

In addition, lenders won’t accept the rental letter unless it contains the following information:

  • Your full name.
  • The property’s address.
  • Commencement date of the lease.
  • The current rent you pay per week.
  • A declaration that you’ve been paying your rent on time for at least the last 12 months.
  • Full name and signature of your real estate agent.

What if I changed addresses in the last 12 months?

Let’s say that you’ve been living at your current address for the past 8 months.

That means you’ll only be able provide an 8-month rental referenace letter. This wouldn’t pass the test with most lenders.

However, if in the preceding 4 months you had been renting elsewhere, you can simply provide a landlord reference letter for this period.

Your rental reference letter doesn’t have to be with the same property, just as long as it’s 12 months continuous history.

This means that multiple reference letters may need to be provided.

Why don’t banks accept letters from landlords?

Most lenders won’t accept a rental history letter from a landlord because landlords can be anyone.

They’re not registered professionals like real estate agents/property managers.

Hypothetically, you could have a portion of your bank account funds deposited into your friend’s account and they could then sign a rental reference letter. Don’t do this!

Although banks are quite strict with the rental letter coming from a real estate agent, some lenders will accept a letter from landlord if you can provide 12 months bank statements.

What about a character reference?

A bank won’t require a character reference in normal circumstances.

However, you may need to provide one if you’re renting for the first time and cannot provide a proof of rent payment letter.


To whom it may concern,

I have known John Smith for over 10 years on a personal and professional basis. We went to school together and have also worked together at ABC Mining Pty Ltd.

He has proven himself to be reliable and financially stable. I strongly recommend him as a tenant and expect that he’ll pay the rent on time and look after the property.

If I can assist you with further information regarding John Smith, please feel free to contact me on 02 9000 0000.



Bob Adams
1 George St Sydney NSW 2000

Apply for a rental letter home loan today

Please complete our free assessment form or call us on 1300 889 743 and we can tell you how you can use your rental payments as proof of your ability to pay off a home loan.

Still have questions? Feel free to comment below and we’ll get back to you as soon as possible.

  • Harry Bearfield

    I live in a friend’s apartment and we all deal in cash, so we don’t have any rental contracts and ledgers. Now, I’m applying for a home loan, will it hinders anything?

  • Hi Harry,

    Usually if you are borrowing anything above 90% of property value you will be required to show that you have genuine savings. If at least 5% of your savings have been saved over a period of time of three months or more, you should be fine.

    However, if your savings are non-genuine (eg, coming as a gift), some banks want to see you have a stable rental history. It is in this case, you have to prove your regular rental payments through a rental ledger from the agent.

  • Toby

    I can provide a 16 month rental reference letter so will be able to help me get a high LTV home loan?

  • Hello Toby,

    A 16 month rental reference letter is great as it serves as proof of your capacity. With this, you may be able to borrow up to 95% of the property value. If you want to borrow more, you can consider going guarantor or other no deposit alternatives.

  • Birrell

    I only have a 5 month rental history so can I use this or do I need to wait to have a 12 month history?

  • Hey Birrell,

    If you do not have a 12 month history, there is actually an exception to this, with one of our lenders accepting 3 months rental history instead so you don’t need to wait if you don’t want to. You can call 1300 889 743 to discuss this with an expert mortgage broker.

  • berry

    So I can borrow up to 90-95% but I’m not sure if I can qualify for a lend as high as that. What’s an easy way to find out?

  • Hi berry,

    An easy way to find out how much you can borrow is by simply having a crack at the “How Much Can I Borrow?” calculator, which takes your income and expenses to provide an accurate indication of how much you can afford to borrow. Here’s the link to the calculator (instructions are on the page itself):

  • Ronn

    Do I need a perfect credit history to borrow 90%?

  • Your credit history doesn’t have to be absolutely perfect as minor paid utility defaults and other small defaults are sometimes acceptable if your application is strong in other areas.

  • Hannah Walker

    Hi, we pay our rent via direct debit to the real estate agency every month. The rent is supposed to be debited from my bank account on the first of every month, however the real estate agent usually takes the payment 2-3 days later. Will this affect our ability to apply for a home loan using rent as genuine savings?

  • Hi Hannah,
    That would be fine. Banks understand that often a direct debit falls on a weekend or for whatever reason isn’t processed on the specific day that it is supposed to be.
    Please call our office on 1300 889 743 and ask for a low deposit expert (they handle gen savings) and they can assist.

  • Monik Johnson

    Hi, I have 2yr rental history, my credit is poor and i don’t have a savings account. Would I be able to get a home loan?

  • Hi Monik,
    It’s unlikely you’d qualify due to not having the required deposit. I’d recommend that you start saving, consider credit repair https://www.homeloanexperts.com.au/bad-credit-home-loans/credit-repair/ and consider a guarantor loan https://www.homeloanexperts.com.au/guarantor-home-loans/ if this option is possible for you.

  • Monik Johnson

    I do have a 401k that I could use for down payment. Is that enough to qualify?

  • Hi Monik,
    This is an Australian website so we can’t assist unfortunately. I’d recommend that you talk to a USA mortgage broker.

  • Cameroon

    I’ve an investment property and earn rental income out of it. However, I haven’t employed a real estate agent and I collect the rental payments myself. How will I prove it to the lender?

  • Hi Cameroon,
    Lenders want to see your rental income through a rental ledger or a letter from the real estate agent. It’s highly unlikely that the banks will accept an exception to this policy, however you could try providing 12 or at least 6 months bank statements showing the rent being deposited on a timely basis.

  • H=Chris Fluent

    Hello… I’m Mr. Chris Fluent., a Private Money Lender offering all kinds of legitimate loan across the globe with a same day approval, I offer all kinds of loans at 2% flat interest rate. My loan program is fast, and my Loan is 100% guaranteed, kindly get back to me if you are interested.@ highclassloanfund@gmail.com best regards.

  • Dan

    Hi guys, my wife and I have a strong combined income approx $150k. 3 years ago we commenced a debt repair and have since combined our debt and saved $10k. Our combined debt is still $25k. On a $400k mortgage and $10k deposit would a rental letter help secure us a low deposit home loan?

  • Dan

    FYI we pay approx $1.9 per month in rent.

  • Hi Dan,
    It’s a pretty good idea to start debt repair and it’s good to know that you have saved some in the process. Usually, banks require you to have at least 5% of the purchase price as your own savings yet, there are a few banks who may accept your rental ledger as your savings if you have some savings with you. Call us on 1300 889 743 or enquire online https://www.homeloanexperts.com.au/free-quote/ and speak with a mortgage broker and find out whether you qualify with rental payments as savings or not.