Rental history can help with loan

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 five per cent weight on your loan application," Mr Herbert said.

"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 homebuyers and other people looking to get out of the rental cycle and into their own home.

Tegan DeClark of Ray White Toowoomba, said lenders supporting this option were 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 make sure they fit the requirements if they want to get in a position to purchase within the next 12 months," Mrs DeClark said.

Buyers with limited savings are encouraged to investigate their eligibility with their lender, as not all lenders offer this program.

Topics:  home buying housing loan

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