Just wondering if you could clarify something about the requirements for genuine savings - if you obtain funds through a gift, can these ever be seen as genuine savings if you hold them in your account for long enough? I have got nearly 10% of the purchase price through a gift from my parents. Do I also then have to save 5% of the purchase price myself on top of this? Or can I just save enough to bring it up to the 10% and then hold it in my account for a period of time?
Thanks for your help.
question about genuine savings
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
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Re: question about genuine savings
Yes if you hold a gift for a minimum of three months then we have some lenders that can accept this as genuine savings. To make it look even better then do not withdraw from the account during those three months and continue to make additional regular contributions, e.g. $100 to $200 / week.
If you do this then our brokers will help you to get a lender to accept it as genuine. Note that some lenders will ask for a six month history if they see the % of the deposit saved during the last three months is very low, and they would decline your loan if they see it was originally a lump sum gift. Others are fine with accepting a gift as genuine savings if it is held for at least three months even if it is not added to. There is very little consistency in their lending policy for genuine savings!
If you do this then our brokers will help you to get a lender to accept it as genuine. Note that some lenders will ask for a six month history if they see the % of the deposit saved during the last three months is very low, and they would decline your loan if they see it was originally a lump sum gift. Others are fine with accepting a gift as genuine savings if it is held for at least three months even if it is not added to. There is very little consistency in their lending policy for genuine savings!