Using your rental history to help you get a loan.

Tegan DeClark

Buyers may not be aware that their rental history can help or hinder their buying potential. People applying for a home loan can use their rental payments as evidence of savings if there is at least 12 month of continuous and satisfactory rental history and the property is leased though a licensed property manager said Peter Herbert, a Senior Mortgage Broker with Loan Market. "In addition, your rental history has a 5% weight on your loan application" Said Peter Herbert. When rental payments are taken into consideration as a factor in assessing genuine savings, that would enable many people to pursue the dream of home ownership.

This is a major benefit to first time home buyers and other people looking to get out of the rental cycle and into their own home. Tegan DeClark of Ray White Toowoomba, believes that lenders supporting this option are helping people who may struggle with dedicated savings otherwise. "Buyers who may benefit from the much needed help of using their rental history to assist their loan application, need to get make sure they fit the requirements if they want to get in a position to purchase within the next 12 months" Buyers with limited savings are encourage to investigate their eligibility with their lender, as not all lenders offer this program.