Rental Commitment or Reference letter.

Why would a Lender require a Rental Commitment Letter as genuine savings?

Since you are looking to borrow funds from a lender and may not have the required deposit or be able to show the require amount of 5% as genuine savings, you may be able to qualify with a Rental Commitment Letter as genuine savings.

A rental commitment or rental reference letter is a letter provided by your licenced property manager to confirm the amount of rent you have paid for the property you are currently tenanting. The letter will assist towards your character, your capacity, your repayment history, your credit worthiness as a good tenant with continuous long term rental repayments over the last 12 months.

The rental commitment letter will indicate to the lender that you have made rental payment on time and the amount of rental paid maybe a similar amount for the proposed loan repayment since you will need to show your capacity to repay the mortgage as a credit repayment commitment.

Lenders do prefer 12 (Twelve) months continuous rental history in a single tenanted property however we do have lenders that will allow multiple property rental history as long as the rental term dates coincide with moving in and out of tenanted properties.

Why can’t a tenancy agreement just do the job?

A tenancy agreement can help to show the rental amount paid and commencement dates however the lender is looking for your repayment history and character as provided by the licenced property manager.

What does a Rental Commitment letter need to show?

We provide a Rental Commitment example letter as below for you to request from your Property manager;

[ Date ]

To Whom It May Concern,

Re: Rental Commitment for [ Name i.e. Jackie Chan ]

We are the Licensed Property Manager for the tenant/s [ name/s ] as they appear on the tenancy agreement.

• The Address of the tenanted property is [ Address ]
• Commencement date of tenancy [ Date ]
• The amount of rent paid per rental cycle (i.e. weekly, fortnightly, monthly) [ $ Amount ]
• [ Confirmation of satisfactory rental payment history i.e., The weekly rental payments are $470 and the tenants have always paid on the due date. The tenant/s has always shown respect to the property and has shown to be a reliable tenant/s. ]

If you have any questions, please call us on the enclosed contact numbers.

Yours Truly,

[ Signed ]

[ Name ]

Property Manager

Please Note: Property managers’ letterhead must show the following;

• Property managers business name,
• Business contact numbers,
• Business address, and
• ABN

Lenders have strict credit criteria on genuine savings requirements and if any details are not shown or disclosed they will request for these items to be amended if not provided. Therefore we encourage you to ask the property manager to assist to provide you with these requirements.

I need help with my Home Loan Application?

To obtain a Loan Approval utilising your rental payments as part of your genuine savings history, Please Enquire Here