Are there lenders that don’t need genuine savings?
Yes, one of our lenders can allow you to borrow up to 95% of the purchase price with no genuine savings.
How does this calculator work?
This calculator is designed to help you determine how your deposit will be viewed by the banks, and whether you meet their genuine savings requirements. However, each lender and mortgage insurer have their own policies and definition of genuine savings.
This can be confusing for many people and can make it harder to ascertain whether you fit into their criteria.
Why am I getting unusual results?
The calculator reflects various banks’ policies.
You may notice that changing the time you have been renting, the percentage of the property value you are borrowing, or if you are receiving a first home owners grant, interacts with the other information you have input.
Please enter your current situation in its entirety, otherwise the result will not be accurate!
Unfortunately the banks have created some very complex and often counter-intuitive policies to assess genuine savings.
This is why the calculator is a helpful tool that reflects how the banks actually view genuine savings, as opposed to the common misconceptions that people have about the flexibility of bank policy.
Are my savings regular or irregular?
There is a link in the calculator to examples of different types of genuine savings.
If you aren’t sure then don’t worry. Our mortgage brokers are experts in genuine savings and can quickly assess your situation. You can read more about how to download your savings statements, send them to us and then we can complete a full assessment for you.
Please enquire online or give us a call if you would like to speak to one of our mortgage brokers that understands the genuine savings policies used by the banks.
Gifts & other funds held for more than three months
Many people receive a gift or have a deposit that would normally be considered as “non genuine savings”. However, if it is held in a bank account for more than three months, it may be considered as genuine savings.
There are still some banks that do not consider this as genuine savings, unless you have actually saved money on your own.
If you are currently renting, then some lenders will accept a gift as genuine savings, as long as it is in your account by the time your loan application is submitted.
The policies used by the banks for gifts held for three months can vary significantly. One will ask you to hold the funds for a total of six months to prove that you are able to refrain from spending the money.
However, other lenders require that your savings increase over time. These lenders may not approve your loan unless you make some savings of your own. One of our lenders considers any funds held for at least three months as genuine savings, regardless of their original source.
Note: Please enter all funds held for more than three months in the “Your Savings” section, no matter their original source.
Are you renting?
If you are currently renting and meet some additional requirements, then some of our banks may classify the rent that you have paid over the last twelve months, as genuine savings. This doesn’t mean that you don’t need a deposit! It just means that your deposit can come from any other source as you have already met the genuine savings requirement.
In most cases, people with a rental history borrow 95% of the property value and receive a gift from their parents to make up the difference.
In addition to this, if you have been renting for just three months, one of our banks may accept additional deposit sources as genuine savings, for example, the sale of your car, inheritance, or a bonus from work.
First home owners grant as genuine savings
One of our lenders previously accepted your First Home Owners Grant (FHOG) as genuine savings.
However, this is no longer accepted by any lender.
This defeated the entire purpose of genuine savings, which is to prove that you can handle your money effectively and can live within your means. After careful consideration this policy was withdrawn in 2012.
Find out more about genuine savings
Do you need help getting your genuine savings accepted? Our mortgage brokers are experts in assessing your savings. They can quickly work out which lenders can accept your loan. Please call us on 1300 889 743 or enquire online for more information.
You can find more information on our genuine savings page.