What Counts As Genuine Savings?

What counts as genuine savings in a loan application?

When you apply for a home loan, especially if the loan is for more than 80 per cent of a property’s value, you’ll more than likely have to prove to the lender that you have enough savings. This is to show them that you have the ability to put aside a portion of your income for future repayments.

Although it can differ, in most cases lenders generally look for consistent additions to savings over a period of at least three months. This means that the following are not considered genuine savings:

  • a cash gift
  • an inheritance
  • casino/other gambling winnings
  • proceeds of the sale of a non-investment asset
  • government grants and other finance offered as incentives


Can I still get a loan without genuine savings?

For those who don’t have any genuine savings but still want to obtain finance, there are still some options available, these include:

  • Guarantor loans – Having a guarantor on your loan may mean that no deposit is required, with the equity or asset the guarantor stakes standing in for a deposit.
  • Other significant assets such as shares, managed funds and/or equity in residential property – Depending on your chosen lender, cash isn’t the only thing accepted as genuine savings.
  • A strong rental record may see a lender allow you to forgo the genuine savings route – Some lenders will waive the requirements if a letter can be produced from a licensed real estate agent confirming that rent has been paid on time and in full for the preceding 12 months, as it highlights your ability to make repayments on time and on an ongoing basis.

Keep in mind that there are often restrictions on the amount of money a lender will lend you in proportion to the value of the property you are buying (known as the loan to value ratio or LVR)

It’s just a matter of looking at your full situation in detail and knowing which lender is going to have policies to suit what you are trying to achieve. As lender policies are always changing, it’s best to speak to your finance broker who is constantly communicating with the lenders to stay up to date on the mortgage landscape.


This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. Your full financial situation will need to be reviewed prior to acceptance of any offer or product and is subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

Credit Representative 487350 is authorised under Australian Credit Licence 389328