No savings & no genuine savings loans

Finally! Home loans without the need for savings

no-savingsThe majority of Australian lenders require you to prove that you have saved a 5% deposit before they will approve your home loan. Generally they ask for 3 to 6 months statements for your savings account and check to see that you have a regular savings pattern and have not made any large one off deposits.

If your deposit is a gift from your family, comes from the sale of an asset, a bonus from work or some other source that banks do not consider to be regular savings then you can get what is known as a “non genuine savings” loan.

No deposit? Or no savings?

No deposit loans with no savings are now only available if you have a guarantor that can support your application. 100% home loans without a guarantor are no longer available from any lender in Australia.

This page is written for people that have a 5% or 10% deposit but cannot prove to a lender that they have saved this deposit by regular contributions to a savings account. In most cases peoples parents have helped them by lending them the deposit or giving them a gift as the deposit. Read on to find out the lending guidelines for 90% and 95% home loans without savings requirements.

How do I know if my savings are “genuine”?

You can apply for a genuine savings loan if you have a 5% deposit that is coming from one of these sources:

  • Money that has been held in a savings account for 3 to 6 months (depending on the lender)
  • Money that you have saved over the last 3 months
  • Money held in a term deposit for over 3 months
  • Equity in an existing property (some lenders only)
  • Proceeds from the sale of a property (some lenders only)
  • Shares held for over 3 months

You can apply for a no genuine savings if your deposit is coming from one of these sources:

  • A gift from a family member (we have gift letter templates available)
  • First Home Owners Grant (FHOG)
  • Advances on wages/commission from an employer
  • Inheritance
  • Financing of a deposit
  • Builder discount/finance
  • Vendor discount/finance
  • Proceeds from sale of motor vehicles
  • Windfall gains
  • One-off government payments (e.g. baby bonus)

If your deposit is not considered to be genuine savings then you may be able to hold it in a bank account for 3 to 6 months and then it will qualify as genuine savings. This policy varies from lender to lender, we recommend that you enquire online to speak to a specialist no savings mortgage broker to discuss your situation.

Are non genuine savings loans more expensive?

No, if you are borrowing up to 90% of the purchase price then the majority of lenders have the same rates and fees for their no savings home loans as they do for those people that have saved a deposit. Around half of the lenders that have no savings home loans charge a slightly higher Lenders Mortgage Insurance (LMI) premium if you can’t prove genuine savings.

If you are borrowing 85% of the property value or less then generally there is no difference in loan & LMI pricing with any lender.

Please enquire online to speak to a mortgage broker who specialises in non genuine savings home loans.

How much can I borrow?

First home buyer with 3% genuine savings: 95% of the property value.

Second home buyer with 5% genuine savings: 95% of the property value.

No genuine savings / No savings: 90% of the property value (95% may be available for some strong applicants, see below).

No genuine savings with guarantor support: 110%+ of the property value.

Note: Most lenders require proof of 5% genuine savings for all loans over 80% of the purchase price while some require genuine savings for all purchases no matter how large your deposit is. These examples are the best available from our panel of lenders.

95% home loans without genuine savings

Recently some lenders have begun to offer 95% home loans without any proof of savings. This type of loan is only available to people who are in a strong financial positon. To qualify for this loan you must meet the following guidelines:

  • Both applicants must have been in their current job for 12 months
  • Your credit history must be free of any defaults / adverse listings, no exceptions
  • You must not have too many consumer debts such as credit cards and personal loans
  • You must be able to afford the debt comfortably, you are not allowed to borrow to your limit
  • If you do not meet this criteria then you will only qualify for a 90% loan or 110% guarantor loan

The interest rate is still very competitive for 95% no genuine savings loans. For a $300,000 loan you would only pay an extra $26 / week more than for a normal professional package discount!

Apply for a loan without proving any savings

We are experts in the genuine savings policies adopted by all of the major Australian lenders and know who can approve a loan without any genuine savings.

Please enquire online to speak to a specialist mortgage broker who can find you a loan without the need to show genuine savings.