2 min read

What is “Genuine Savings”?

By Raptis on Dec 18, 2020 4:28:14 PM

Have you applied for a home loan and the lender asked for the history of your Genuine savings, and you wonder what it all means?

Genuine Savings are the funds you have gradually saved by yourself. It proves to the lender that you have the self-discipline to save a certain amount over time. This will help them to assess your capacity to make monthly loan repayments. Majority of lenders require that you prove you have genuine savings if you are borrowing more than 80% of the value of a property, or 85% or more in some cases.

Lenders are usually looking for proof of at least 5% of the purchased price in Genuine Savings. Each lender has slightly different definitions and requirements.

What do lenders consider as “Genuine Savings”?

  • At least 3 months of accumulated savings
  • A term deposit held for at least 3 months
  • Shares or managed funds held for at least three months

*Some lenders will consider rent that you are paying over time (preferably 6-12 months) as a part of your Genuine Savings. It’s best to check it with your mortgage broker first.

What lenders DO NOT consider as “Genuine Savings”?

  • The “First Time Home Buyer Grant”
  • Inheritance
  • Gifts
  • Tax Refunds
  • Loaned money
  • Money from the sale of non-investment asset like a car

You should remember different lenders have different rules on Genuine Savings, most lenders require some sort of proof.

How much Genuine Savings do you need?
Typically, you will be asked for a minimum of 5% of the purchase price. For example, on a $600,000 home you would need $30,000 in Genuine Savings. Then you can make up the rest of the deposit from other sources.

“There are many options available for borrowers therefore, we think the best strategy is to speak with your Mortgage Broker. They will be able to advise and recommend the best lender suited to your individual situation.”

It’s really important to familiarise yourself with terms, and get basic knowledge about the regulations. In this way when searching for a broker or making a decision about which lender to choose you have enough information about the matter.

If you are interested to read further about the Home Loan, click here to view further topics. 


Written by Raptis

Raptis is one of the Gold Coast’s most experienced and progressive developers. For more than forty years, they have developed and constructed some of the most iconic landmarks along the Coast and have substantially shaped the city’s distinctive skyline. The Raptis name is synonymous with quality and stylish living and is acknowledged for introducing new trends. Many developments have received industry recognition at both a local and national level. Importantly, the Raptis legacy is founded on family values and while father and son, Jim and Evan, spearhead the company’s growth, the overall success of the company is attributable to a dedicated team of professionals. This entire team has decades of experience in development, design, construction, sales and property management.