Savers get a boost from new 'rental history' rules

Australians struggling to get a foot on the property ladder have been given a boost after a major lender confirmed it will accept rental history as evidence of savings.

BankSA, South Australia's biggest home lender, revealed it was following measures by its sister bank St George aimed at helping potential first-home buyers who struggle to save up for a deposit while paying rent at the same time.

Speaking to the South Australian Advertiser, Bank SA spokesman Simon Evans confirmed the lender would accept rental history as a form of savings providing "it's through a proper agent".

It means that evidence of continuous rental payments for more than 12 months would be considered as making up part of a five per cent deposit, which is traditionally the proportion needed for a home of about $400,000.

Potential first-home buyers seeking to boost their funds could also choose to compare term deposits in search of the best returns. Loans Market chief operating officer Dean Rushton hailed the BankSA move as "a significant breakthrough for first-home buyers" which "could be a boost to the home finance industry".

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