Living Rent-Free Letter | Home Loans If You're Living At Home

Do you live at home with your parents?

This page is for people living rent-free with their parents and need a statutory declaration or a living rent-free letter stating that they don’t pay any rent.

A rent-free letter is helpful whether you’re looking to buy your first property or you need to refinance an investment property that you own while living at home.

By providing evidence that you don’t pay rent, you can significantly improve your borrowing power but it comes down to choosing the right lender.

What is a rent-free letter?

A rent-free declaration is simply a letter stating that you live rent-free with your parents.

The letter is fairly basic but as a minimum it should include:

  • Your full name and that of your partner if you’re married or in a de facto relationship.
  • The address you’re living in.
  • Signed and dated by your parents.

Some lenders require you to have a statutory declaration or a stat dec which means that it’s signed in the presence of a Justice of the Peace (JP) or another acceptable witness such as a lawyer, medical practitioner or lawyer.

Check out the stat dec page for more information.

Some other lenders don’t have this requirement but, ultimately, getting a stat dec is not that difficult.

If your bank is being unreasonable in requesting a stat dec or supporting evidence, please call us on 1300 889 743 or complete our free assessment form and we can help you qualify with a different lender.

Living rent-free with parents sample

The below template should be copied into a word document, edited, printed and then signed by your parents or JP if required by your lender.

Please return to your mortgage broker as soon as possible so they can submit your home loan application:

I/We: John Smith

Of: 1 Pitt St Sydney in the State of New South Wales, do solemnly and sincerely declare as follows:

Joshua and Georgia Smith have moved into our residence at 20 Nice Road Saint Clair VIC 3995, and are not required to pay rent or board.

And I/we make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act, 1900 (as amended).

Subscribed and declared at Sydney NSW

This 1st day of January 2018


John Smith

Before me:


Name: (Name of JP)
Justice of the Peace #: 123456

Editable template

Use this template to create your own living rent-free with parents letter:

Some lenders apply a notional rental expense!

Even if you provide a living rent-free letter, some banks still apply a notional rental expense of around $150 per week in case you move out of home.

The good news is that some lenders don’t apply notional rental expense when assessing your financial situation allowing you to borrow more.

Lenders can be strict with investors living at home

Are you living at home and looking to buy an investment property?

Some lenders don’t like lending to investors who don’t own other properties.

In particular, for home loans over 80% of the property value, they often require someone to have 10-20% equity in another property.

So for a $500,000 property, you’d need to have $50,000 in equity as a minimum.

Do you need help?

Please call us on 1300 889 743 or complete our online enquiry form and we can help you qualify for a home loan if you’re living rent-free with your parents.

Why use us?

We aim to set an example by delivering what we promise: a higher level of service, better advice and better home loans.


Australia-wide services

We finance properties anywhere in Australia for people anywhere in the world.


Get incredible interest rates

Our relationships with our panel of lenders allow us to negotiate your interest rate.


We get tough loans approved

We can help you navigate the often complex pre-approval and application process.


Our customers love us

We receive hundreds of love letters from our customers.

Discover more reasons to use Home Loan Experts

How we find you the right solution

We get a complete understanding of where you’re at and what your ultimate goals are.
You’ll get a recommendation in just a few simple steps.

free assessment

Complete our free assessment form or call us.


We assess your situation.


We look at all the options from our panel of lenders.

suitable home loan deals

We will find you the most suitable home loan deals.

Testimonials for Home loan experts

about us


lenders on
our panel


lent Australia-wide
and counting

Common Wealth
St George
Pepper Money
Me Bank

of our borrowers get
approved with a major bank


of our borrowers get a discount
below the bank standard variable rate

Otto Dargan

Founder, Home Loan Experts

Secrets To Home Buying - Now At Your Fingertips.

Learn all the Home Buying Tips and Tricks banks don’t want you to know, from our experts with 15+ years of industry experience.

Powered by Home Loan Experts