Is ‘Rent to Buy’ Legitimate?

Definitely! In the Australian Census forms there is a question regarding the dwelling in which you live. Of the 7 choices, choice 3 relates to dwellings purchased under a rent/buy scheme.

This shows the recognition by the Australian Government of Rent to Buy in the national home finance market.


Do I Need To Be Working?

Yes! You should have a financially supportive income and it’s quite okay to be self-employed. You need to be able to afford the weekly or fortnightly repayments and have a little money saved towards buying a house to cover your legal and loan costs.

How does my Rent go towards purchasing my home?

During the rental period an agreed portion of your weekly rent payment is put aside as a ‘cash-back credit’ towards your deposit for the eventual purchase of your home.

Can this reduce my home loan?

Because the total credits you have accumulated is money you don’t have to borrow, it means the rent cash back credit is in fact actively paying off the principal amount of the loan you’ll require. The long-term benefit of that is a significantly reduced home loan.

Will I have an opportunity to Renovate?

Should you choose to renovate (with the owner’s permission), any renovations or improvements will increase the market value of the property and with it, your equity in the home.

How much Deposit will I need?

We work with you to determine what you can afford. Your deposit is a credit towards the eventual purchase of your home.  It is non-refundable if you should ultimately choose not to purchase the property, however we would utilise all our resources to resolve any problem – financial or otherwise - so you can complete your purchase.

How much will the Rent be?

That depends on the value of the property you choose to purchase, however the repayments will be higher than normal rent with an agreed portion to be paid back to you towards your deposit at time of settlement. It also enables you to get used to paying a mortgage size repayment each week, to ensure it’s manageable. It is our intention throughout to ensure you can comfortably handle your financial commitments.

How do I get to qualify for a home loan?

Our mortgage brokers will meet with you to prequalify you for a future housing loan.  This will determine the period you will require to meet the purchase agreement and establish your capacity to make the required ongoing repayments. 

How can I be sure of getting a main stream Mortgage?

Prosperity Management Services will hold your hand throughout the entire process.

Before we even start, before you sign the Rent to Buy agreement, your financial situation and projection will be discussed with you by our Mortgage Broker.

When do we settle?

Usually we would expect settlement to take place anywhere from 6 – 36 months after signing the ‘Rent to Buy’ agreement, depending on your situation.

Is this arrangement protected by Legal Contracts?

Yes! Our solicitor will be able to provide your solicitor with the legal documents required to recognise and protect you in all the agreed arrangements.

Who will own the Property during the Rent to Buy process?

You will be able to treat the property as your own but until the purchase agreement and settlement are complete, the ownership remains with the seller.

Summary of the many benefits to YOU:

• You get into a property and start repaying it NOW.

• You get used to paying a weekly outlay that is equivalent to the mortgage rate you will have to pay when you eventually undertake a home loan.

• You get a possible 1-3 year opportunity to make improvements on the property which would improve the value of the property, increase your equity in the home and reduce your required mortgage.

• You are receiving a great opportunity to realise what it is like to be a home owner and not just a tenant. YOU are now a property investor, yourself.

Interested in Rent to Buy?

Contact us!