Saving for a deposit while paying rent is difficult for the first-time homebuyer. For many, working for a better income while paying monthly bills makes it impossible for them to save up a substantial amount of money, whether it is for a new home or emergency funding. Meanwhile, it is possible for others, but it could take a very long time. 

Fortunately, Australian lenders acknowledge this challenge and work towards the feasibility of lending money based on rental history rather than pure savings. With this initiative, many Australians today are allowed to take an even more flexible housing option. Thus, if you're a first-time buyer tired of paying high rents toward your landlord's mortgage, keep reading to find out how being a good renter can help you.

Read on to discover how you can find (and buy) your first home through your renting history.

Financial Savings and Renting History

Saving for a deposit is usually the most difficult component of buying a first home. Most banks require you to keep at least 5% of your actual savings in a bank account for at least three months. That's difficult when attempting to pay your rent and other living expenses.

Some Australian lenders will lend to candidates with a solid rental history and a less than 5% deposit. Many lenders may look at your monthly rental payments to establish your ability to make mortgage repayments rather than the total 5% actual savings over three months.

As a result, if you have not yet accumulated your 5% actual savings, your renting history may be scrutinized. 

Showing Your Proof of On-Time Lease Payments

To be eligible for rental history savings, you must provide documentation of:

  • Your rent has been paid in full and on time for the last 12 months, as verified by a competent real estate agent.
  • Six to twelve months rental ledger from your licensed real estate agent
  • Your whole tenancy agreement and bank statements

Seeking Professional Assistance

Only a few lenders will view rental history as actual savings, so it's important to contact a mortgage professional before diving into this market area. A professional mortgage broker may do a financial analysis and evaluate your rental history to connect you with the best lender for your situation or help you plan and set goals for purchasing your first home.


The thing is, buying a home could be challenging for almost anybody. This means having to secure funds, look for a property within your means, and navigate through real estate jargon. This could be complicated, especially if you have no professional guidance by your side.

If you're used to renting, you would be likely to believe that buying a home could be nearly impossible. However, look beyond the hurdles, and you may find solutions, such as using your rent history. If you can take advantage of this route, make sure you're a credible client with an excellent to flawless history with your rental payments.

Wealthy You is an Australian mortgage company that can offer you a variety of the best home loans in Sydney. Our team also comprises professionals who have been in the industry for almost a decade. If you want to know more, contact us for an obligation-free meeting!