If you’re finding that paying rent and living expenses and saving for a home deposit are mutually exclusive activities, maybe it’s worth considering a home loan that accepts a solid history of rent payments as proof of your ability to save?
With rental prices in parts of Australia at a record high, some tenants are paying more in rent than they would for a mortgage. With inflated rents making it even harder to save for a deposit, there is reduced demand for home loans, but one company has decided to tackle the problem head on.
RAMS Rent Saver home loan is one of the first of its kind on the market.
“One of the biggest problems people have is paying rent and trying to get a home loan deposit together,” says RAMS’ Nigel Lopez-McBean.
“Even if you’ve been given money from a friend or relative, it doesn’t count as genuine savings. Genuine savings are seen as step-by-step increases in your bank account or savings that have been untouched for three months, and this can be a real stumbling block,” Lopez-McBean says.
“RAMS Rent Saver home loan allows people with a really good back history of paying rent to a reputable agent for 12 months or more to use that as proof of their ability to save.”
The fine print:
- An all-in-one variable rate home loan with flexible deposit options
- You can borrow up to 95 percent of the purchase price (or valuation if lower)
- Redraw facilities
- 15 free transactions every month across all access methods (ATM, EFTPOS and chequebook)
- Up to 5 years interest only repayments
- Choice of deposit methods including direct debit, salary credit, bank@post or BPAY
- Lifestyle and Construction options available
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