Hey guys,
I and my wife are trying to buy a home. It’s our first time applying for a home loan. Basically we would like to purchase a house worth $550,000. I’m currently working as a finance assistant for a company and my wife is a gradschool teacher. But we don’t know how to calculate our genuine savings. Can anyone help us?
How much genuine savings do I require?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How much genuine savings do I require?
Hi and welcome to the forums paulawalker.
Calculating your genuine savings can be very complicated. You can, however, use our Genuine Savings Calculator to estimate how much genuine savings you have and to determine if you are eligible for a loan.
With the help of our calculator, you can figure out how the lenders will view your deposit. You can also get an idea of whether you will meet their genuine savings requirements.
Since you are a first home buyer you may be able to apply for benefits offered by the government, such as grants and stamp duty exemptions. You can use our First Home Grant Calculator to find out if you are eligible for any of these benefits.
Cheers,
Otto
Calculating your genuine savings can be very complicated. You can, however, use our Genuine Savings Calculator to estimate how much genuine savings you have and to determine if you are eligible for a loan.
With the help of our calculator, you can figure out how the lenders will view your deposit. You can also get an idea of whether you will meet their genuine savings requirements.
Since you are a first home buyer you may be able to apply for benefits offered by the government, such as grants and stamp duty exemptions. You can use our First Home Grant Calculator to find out if you are eligible for any of these benefits.
Cheers,
Otto
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- Posts: 35
- Joined: Thu Jun 27, 2013 9:17 pm
Re: How much genuine savings do I require?
Thanks Otto.
Calculating the genuine savings really is very complicated and the calculator is awesome! I just have one more question for you now. What kind of genuine savings requirements will our lenders have? Can I borrow for a home even without a deposit?
I hope to hear from you soon.
Calculating the genuine savings really is very complicated and the calculator is awesome! I just have one more question for you now. What kind of genuine savings requirements will our lenders have? Can I borrow for a home even without a deposit?
I hope to hear from you soon.
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How much genuine savings do I require?
Hi paulawalker,
Lender may have their own genuine savings requirements which determine how much you can borrow. You may be offered the following types of loan depending on your genuine savings:
If you would like to know more about genuine savings then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.
Cheers,
Otto
Lender may have their own genuine savings requirements which determine how much you can borrow. You may be offered the following types of loan depending on your genuine savings:
- 80% of the property value: No genuine savings required.
- 85% of the property price: Most lenders do not require genuine savings.
- 90% of the property price: Most lenders will require genuine savings.
- 95% of the property price: Almost every lender will require genuine savings.
- 100% of the property price: A few lenders offer guarantor loans for 100% of the property price without genuine savings.
- No genuine savings: You can access several lenders who do not require genuine savings with help from specialised mortgage brokers.
- Savings held or accumulated for over three months.
- Term deposit held for three months.
- Shares or managed funds held for three months.
- Equity in real estate.
- Some exceptions may apply if you’ve been renting for the last three months.
If you would like to know more about genuine savings then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.
Cheers,
Otto
-
- Posts: 35
- Joined: Thu Jun 27, 2013 9:17 pm
Re: How much genuine savings do I require?
You’ve helped me a great deal mate!
Thank you for being so informative again, Otto. I’ve got a better idea of genuine savings now. I’ll contact you if I have any further enquiries regarding home loans.
G’day!
Thank you for being so informative again, Otto. I’ve got a better idea of genuine savings now. I’ll contact you if I have any further enquiries regarding home loans.
G’day!
Re: How much genuine savings do I require?
Hello everyone,
I’m trying to decide if I should get a loan so that I can buy a new house. The bank wants to know how much genuine savings I have. I live in an apartment that I rented since half a year ago. Would it be considered as genuine savings? And how much genuine savings must I have? Help.
I’m trying to decide if I should get a loan so that I can buy a new house. The bank wants to know how much genuine savings I have. I live in an apartment that I rented since half a year ago. Would it be considered as genuine savings? And how much genuine savings must I have? Help.
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How much genuine savings do I require?
Hi gleeson,
In the event that you are renting and meet a few additional conditions, some lenders may consider the rent you have been paying for the past twelve months as your genuine savings. It does not, however, mean that you don’t require a deposit. What it means is that you have met the genuine savings requirement and now your deposit can come from any other source.
If you've been renting for only three months, then in rare cases, lenders may consider additional deposit sources such as inheritance and bonuses as genuine savings. The following are normally not considered genuine savings. Your deposit may, however, come from these sources if you have been renting:
Cheers,
Otto
In the event that you are renting and meet a few additional conditions, some lenders may consider the rent you have been paying for the past twelve months as your genuine savings. It does not, however, mean that you don’t require a deposit. What it means is that you have met the genuine savings requirement and now your deposit can come from any other source.
If you've been renting for only three months, then in rare cases, lenders may consider additional deposit sources such as inheritance and bonuses as genuine savings. The following are normally not considered genuine savings. Your deposit may, however, come from these sources if you have been renting:
- Gifts
- Inheritance
- Savings plans
- Tax refunds
- Lump sum deposits
- Bonuses
- Selling your car or other assets
- First Home Owner Grant (FHOG)
- Funds held in a business account
- Any borrowed funds
- Developer’s or builder’s rebates/incentives
Cheers,
Otto
Re: How much genuine savings do I require?
Hey, Otto!
Thanks for clarifying everything for me, mate. I’m really glad I joined the forum! I’ll send you a personal message if I need to contact you once I apply for the loan.
Thanks for clarifying everything for me, mate. I’m really glad I joined the forum! I’ll send you a personal message if I need to contact you once I apply for the loan.