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Can Rent Be Used as Genuine Savings?

Getting into the property market is difficult when you’re paying rent because you’re still required to save a 5% deposit towards a new home. While the deposit is still usually required, many lenders will accept your rental history as a substitute for your ‘Genuine Savings‘, meaning that any required deposit may be non-genuine savings. This recognition of your timely rent payments equal to an amount of the 5% genuine savings deposit is limited to a number of banks on our panel (not all banks will accept rent as a means of demonstrating your genuine savings record).

You may be able to borrow up to 95% of the property price, and up to 97% in some cases (including LMI).


You may demonstrate your ability to save a 5% deposit (what would otherwise be ‘Genuine Savings’) by way of a Rental Reference Letter or Rental Commitment Letter. The letter will assist towards your character, your capacity, your repayment history, your creditworthiness as a good tenant with continuous long-term rental repayments over the last 12 months.

What Does A Rental Commitment Letter Need To Show? A Rental Commitment letter from your Property Manager or Real Estate Agent will be required to provide the following:

  • Full name of tenants as per tenancy agreement.
  • The Address of the tenanted property.
  • The Commencement date of tenancy (minimum 3 months term to apply).
  • The amount of rent paid per cycle, e.g., Weekly, Fortnightly or Monthly.
  • Confirmation of 3 months satisfactory Rental payment History.

You will still be required to demonstrate your strong financial position by way of a good credit file.

Call us to Learn More

You should call us for a quick consultation to get a better understanding of your options.

Download our First Home Buyer Guide. It includes over 40-pages that'll guide you on your property purchase journey.

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