Nowadays most of the lenders require borrowers to have genuine savings while applying for a loan. In general, lenders require borrowers to have 5% of the purchase price in genuine savings for a home loan, and 10% for an investment loan.
Lenders have their own genuine savings policy, so you cannot tell for sure what is considered to be genuine savings. However, the following are usually considered as your genuine savings:
- Savings accumulated over the past three months
- Term deposits held over three months
- Shares or managed funds held over three months
- Equity in real estate
- If you have been paying rent over the past three months.
- up to 80%, then genuine savings is not required.
- less than 85%, then most lenders do not require genuine savings.
- less than 90%, then you need genuine savings in case of most lenders.
- between 90% and 95%, then almost all lenders require genuine savings.
- 100% or even more, then you may be able to get a guarantor loan without genuine savings.
Please call us on 1300 889 743 and one of our specialist mortgage brokers will let you know if you qualify for a loan.
Cheers,
Otto