Rent To Own


Information Pack

Rent to Own provides people with the opportunity to purchase their own home, who otherwise may not have had that opportunity.

Instead of paying rent and saving up $100 to $200 a week for the bank’s required deposit, you get to move into your home now and can refinance through a bank later.



An Opportunity to Move Into Your Own Home Sooner

The basic concept idea is that an investor, who can obtains a loan through the bank, purchases the property. You enter into an agreement with the investor where as you are paying your weekly rent, you are actually paying off your home. 

The investor obviously will be paying for expenses of purchasing the property and also make a profit. This is then passed on to the purchaser. Nexfer can offer finance arrangements where the vendor holds the title to the property. This is vendor financing. Instead of providing finance, you can also rent the property with the right to purchase the property in the near future. 

The purchaser has legal rights to possession and the right to purchase the property. The main goal is to aim to refinance and pay out the contract as soon as possible. Depending on the contract this would range between 3-7 years. During that time you can live in the property and care for it as if it is your own, and benefit from the increase value of the property when refinancing. 

Many people have not heard about Rent to Own, it not new however and has helped many good people own their own home over the last century!

Rent To Own Is Not New!


Vendor Finance has been used for selling real estate in Australia for a very long time. In fact, in the 1920s - 1950s, banks were reluctant to lend for residential purchases, preferring instead to finance business because they offered better profits. Since then, vendor finance fluctuates according to social and economic conditions and the availability of bank and non-bank finance.

As an example, in World War II, the supply of housing real estate became scarce, unable to meet the demands or veterans wanting to settle down as raise a family. This drove up the price of building materials and housing, which meant that saving the money to purchase property without borrowing was no longer feasible. But who was to provide the finance? Answer – the vendor! 

An example, here is a newspaper advertisement for the sale ‘off the plan’ of housing block land near Kiama south of Sydney, dated 1957, where Rent to Own terms were offered. 

Rent To Own Guidelines:

As Rent to Own is suited for people who don’t fit the bank’s general criteria, the property is generally sold at a higher amount than the current market value. Also your interest rate will be higher than the market rate. Each property is different and the final sale and weekly rental price depends on factors like deposit and your situation 

The steps for qualifying are: 

  1. Filling the application form and provide associated documents.
  2. Wait for approval – takes only a few days

If a family give us a basic idea of your move in deposit, income and credit history, we can verbally give then a good idea of what we can do, prior to them even filling in the application.

Frequently Asked Questions

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