First Home-Buyers in WA Can Use Rental History Towards Home Loan
Imagine being able to use your rental payments history as evidence of genuine savings toward a home loan. Now you can.
St George, one of WA’s lenders has answered the call to allow people applying for a home loan to use rental payments as evidence of genuine savings.
Becoming the first bank to change its loan requirements and accept this form of savings, St George is providing much needed assistance to first home-buyers.
Loan Market Chief Operating Officer Dean Rushton said St George is now accepting rent payments over a continuous period of 12 months as evidence of a form of savings for a home deposit. A satisfactory rental history and the property having been leased through a licensed property manager will also be a prerequisite.
A significant breakthrough for first home buyers, this could also be a major boost to home finance industry in Western Australia.
With higher interest rates, tougher lending conditions and the end of the first home buyer’s grant, not to mention the difficulty of paying high rent whilst trying to save for a deposit, ended the Australian dream of owning a home for many West Australians.
This is a major step and other lenders are expected to follow suit.