Living costs – including higher rents – have not made it any easier to save for a deposit. Lenders want at least a 5 per cent deposit for a home loan. Many want more. And the boosted federal government grant for first home buyers ended last year.
On top of that, higher interest rates and tougher lending conditions have all but driven first time buyers out of the market.
The good news – especially first home buyers – is that your rental history now counts.
St George Bank is the first Australian bank to consider rental payments a genuine form of savings in loan application approvals.
In seeking approval for a St George home loan, your rental history would need to be continuous and satisfactory for 12 months or more and the leased property would need to be arranged through a licensed property manager.
Many more people will soon be able to follow their dream of home ownership. St George’s move is expected to sway the policies of other lenders and boost activity in the home finance sector.