Myth 3: If you do not have a deposit you need to be renting through a Real Estate Agent for at least 6 months to show “genuine savings”… (Myth 3)

Myth 3: If you do not have a deposit you need to be renting through a Real Estate Agent for at least 6 months to show “genuine savings”…

It has been said that if you are finding your deposit from outside genuine savings, that you must be renting through a Real Estate agency for at least 6 months and have a clear tenant ledger.

While most banks will not even talk to you without a deposit, there are some who require the above to show you can pay your rent and therefore your home loan repayments on time. Our clients have found that if you speak with the right financier, you do not need to be renting through an agency to get a home loan and in fact you could, for example, be boarding with family.

Thinking back on what I was doing 6 months ago this may seem a bit draconian, really thinking back 6 minutes is a stretch for some.  However taking on a home mortgage is a significant commitment (typically 30 years) and necessarily when asking for large sums of money from a lender we need to show our ability and be committed to the journey.  The rewards are there but they will come home to roost in the future rather than right now.  Happy days when you are in your own home and kicking back with no random “landlords inspection” to measure up the yard for their  Aunt’s caravan or any other such nonsense.  Apart from the convenience factor there is the wealth building strategy that property has consistently delivered over time.  So thinking back to 6 months ago how was your savings account looking then and how has it changed since?

So moving from where you are today to where you want to be has many and varied solutions however you can start that journey from under your parents roof, boarding with friends or a number of these common solutions.