Rent considered genuine savings

Rent considered genuine savings

23 December 2010 by Staff Reporter 0 comments

Staff Reporter

St George will now accept rental payments as evidence of genuine savings.

In a move that will help first home buyers all over the nation, St George has announced it will accept rent as a form of savings for a home deposit if there is evidence of a minimum of 12 months continuous satisfactory rental history and the property is leased through a property manager.

"This is a significant breakthrough for first homebuyers and a move which could be a major boost to the home finance industry," Loan Market chief operating officer Dean Rushton said.

"Higher interest rates, tougher lending conditions and the end of the boosted federal government grant at the end of last year have driven first time buyers out of the market.

"Another major restriction for them has been the difficulty in saving a deposit for a home loan, particularly in this economic climate with people having to cope with massive cost of living increases including rental payments."

Up till now, all Australian lenders have required a percentage of the purchase price - normally five per cent minimum - to be saved for all loans.

"But if rental payments were taken into consideration as a factor in assessing genuine savings that would enable many people to pursue the dream of home ownership," Mr Rushton said.

"St George has now moved to accept rental history as a form of genuine savings and they should be applauded for this decision as it will enable a lot more people to realise the great Australian dream of home ownership."

 

Staff Reporter

St George will now accept rental payments as evidence of genuine savings.

In a move that will help first home buyers all over the nation, St George has announced it will accept rent as a form of savings for a home deposit if there is evidence of a minimum of 12 months continuous satisfactory rental history and the property is leased through a property manager.

"This is a significant breakthrough for first homebuyers and a move which could be a major boost to the home finance industry," Loan Market chief operating officer Dean Rushton said.

"Higher interest rates, tougher lending conditions and the end of the boosted federal government grant at the end of last year have driven first time buyers out of the market.

"Another major restriction for them has been the difficulty in saving a deposit for a home loan, particularly in this economic climate with people having to cope with massive cost of living increases including rental payments."

Up till now, all Australian lenders have required a percentage of the purchase price - normally five per cent minimum - to be saved for all loans.

"But if rental payments were taken into consideration as a factor in assessing genuine savings that would enable many people to pursue the dream of home ownership," Mr Rushton said.

"St George has now moved to accept rental history as a form of genuine savings and they should be applauded for this decision as it will enable a lot more people to realise the great Australian dream of home ownership."

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?