St George lends a hand to First Home Buyers

St George Bank will recognise rental payments as evidence of genuine savings, assisting first home buyers to acquire finance.

Mortgage broker Loan Market welcomed the move, saying it will provide a much-needed boost to the property market.

“Higher interest rates, tougher lending conditions and the end of the boosted Federal Government grant at the end of last year have driven first-time buyers out of the market,” says Dean Rushton, Chief Operating Officer at Loan Market. “But 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.”

St George will accept rent as a form of savings for a home deposit provided there is evidence of a minimum of 12 months’ continuous, satisfactory rental history and the property is leased through a licensed property manager, according to Dean.

Source: www.reinsw.com.au 19 Jan 2011