Loan Market backs 'rental history' initiative
National mortgage broker Loan Market has backed St George Bank's recent decision to allow first-time home buyers the chance to use rent history as evidence of genuine savings when applying for home loans.
St George Bank recently became the first bank to change its mortgage requirements in this way and in doing so, "shone some much-needed light on the struggling first-home buyer market in the process", Loan Market said.
Indeed, Dean Rushton, chief operating officer at the broker firm, noted that the initiative could make it easier for first-time buyers to compare home loans and get on the property ladder.
"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," he said.
St George confirmed that although first-time borrowers will still need to come up with the ten per cent deposit, the bank has changed its perspective on the genuine savings component.
Now, instead of having to prove savings history, borrowers can show 12 months of a strong renter's record even if the deposit is gifted money.
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