What counts as genuine savings?


When you go through the process of applying for a home loan, you will have to show that lender that you have an adequate amount of savings, especially if the loan is more than 80 percent of the property’s value. Genuine savings highlights to the lender that you have the ability to filter some of your income into your home loan repayments.

Lenders will want to see regular deposits into your savings account over three months to over a year or more. Therefore, the below are not recognised as genuine savings:
– Cash gifts
– An inheritance
– Proceeds from the sale of a non-investment asset
– Casino or other gambling winnings
– Government grants
– Other finance

If I don’t have genuine savings can I still get a loan?

If you don’t have genuine savings but want finance, this does not mean it’s the end of the road. Your finance broker will be able to discuss the other options with you, which may include:
– Guarantor loans: A guarantor loan may not require a deposit as the equity that the guarantor provides as security will stand in for a deposit.
– Other assets: assets such as shares, equity in a property or a managed fund can be considered as genuine savings.
– Your rental history: depending on the lender, genuine savings requirements could be waived if a licenced real estate can confirm that rent has been paid in full and on time for the past 12 months, as this shows you can make payments on time.

Looking for finance isn’t something you have to go through alone, especially if you don’t have genuine savings. A mortgage broker will consider your full situation and have an understanding of what lenders have the policies to suit what you’re trying to achieve.
At Accrue Equity, we help borrowers match a product with their needs if you’re looking for finance we’re here to make the process easy for you.