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No Genuine Savings Loans

Finally! Home loans without any genuine savings

The majority of Australian lenders require you to prove that you have saved a 5% deposit before they will approve your home loan.

If your deposit is a gift from your family, comes from the sale of an asset, a bonus from work, has been borrowed or comes from 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.

How much can I borrow?

You must meet standard lending criteria involving your employment, credit history, serviceability and proof of your income. The amount you can borrow depends on your overall situation:

  • 90% home loans: You can borrow 90% of the purchase price from three of our lenders irrespective of the source of your deposit.
  • 95% home loans: One of our lenders can approve a home loan for up to 95% of the purchase price with no genuine savings.
  • 100% home loans: With a guarantor, you can borrow 100% of the purchase price plus the costs of completion.

Call us on 1300 889 743 or enquire online and one of our mortgage brokers will help you to get approved.

Can lenders accept a gift as a deposit?

Yes, you can get approved for a home loan if your deposit is coming from a gift from your parents, however not with all lenders.

Banks do not consider a gift to be the same as a deposit that you have saved yourself. This is because a saved deposit is excellent evidence that you are financially responsible and are able to make repayments on a home loan.

If your deposit is coming from a gift then please call us on 1300 889 743 as the approval criteria is more complicated than for a standard home loan.

No deposit? Or no savings?

Borrowing 100% of the purchase price with no deposit is 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 however cannot prove to a lender that they have saved this deposit themselves with regular contributions to a savings account.

In most cases our customers’ 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 deposit is 'genuine savings'?

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.
  • If you are currently renting, then some lenders will consider your last 12 months’ rent as genuine savings (conditions apply, three lenders only).

You can apply for a no genuine savings loan 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 (personal loan or other borrowings).
  • Builder discount/finance (restrictions apply).
  • Vendor discount/finance (restrictions apply).
  • Proceeds from sale of motor vehicles.
  • Windfall gains.
  • One-off government payments (e.g. tax refund).

It’s actually very complicated… If you are renting then some lenders will accept these deposit sources as genuine savings!

Call us on 1300 889 743 or enquire online to speak to a specialist mortgage broker about 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.

For loans of up to 95% of the purchase price, some lenders will 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 and LMI pricing with any lender.

Can I get a 95% home loan without genuine savings?

Recently, some lenders have started offering 95% home loans without requiring any proof of savings from the applicant. This type of loan is only available to people who are in a strong financial position. To qualify for this loan you must meet the following guidelines:

  • You must be paying your rent on time (if you are renting).
  • Both applicants must have stable employment.
  • Your credit history must be free of any defaults or adverse listings and must not have too many credit enquiries.
  • You must have an excellent credit score.
  • 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 a 110% loan with the help of a guarantor.

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will let you know if you qualify for a mortgage.

Ask your lender if the LMI premium is capitalised!

Did you know that although there are three lenders that have 95% home loans with no genuine savings, we only recommend one of those lenders? The reason being is that the other two lenders do not capitalise the LMI premium on top of the loan amount.

For example if you borrow 95% then the LMI premium will be around 3% of the loan amount. If your lender doesn’t add this onto the loan then you will only get 92% of the property value after the premium has been paid! This means that for a $500,000 purchase you would need to find another $15,000 to complete the purchase!

Whereas if the premium is capitalised, then the lender approves your loan for 98% of the property value, which leaves you with 95% after the LMI premium is paid. The above calculation is an example only. Please use our purchasing costs calculator and LMI calculator to work out how large your deposit will need to be to buy a property.

Can I hold a gift in my account?

Some people try to hold a gift in their account for several months to have it counted as genuine savings. Unfortunately it isn’t always this simple.

While this will convince some lenders that you are good with your money, there are others who will question why your savings have not increased or why there was a large lump sum deposited into your account.

In most cases there is no need to pretend that you saved your deposit yourself because there is a lender that will approve your loan anyway.

The key is to apply with a lender that can accept your situation.

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 call us on 1300 889 743 or enquire online to speak to a specialist mortgage broker who can find you a loan without the need to show genuine savings.

  • Rupert

    If I get a guarantor to help me with my home loan then I won’t need genuine savings, will I?

  • Hey Rupert,

    No, since the guarantor will be using their own property to guarantee a portion of your home loan, you won’t need genuine savings and can avoid paying LMI as well. You can find out more here:
    https://www.homeloanexperts.com.au/guarantor-home-loans

  • Sue Allen

    If I own a block of land can I still get first home buyers?

  • Hi Sue,

    Yes in most states you can qualify for the FHOG when you start construction. Call your state government to confirm for your situation. FYI in terms of genuine savings the equity in your land can be considered as genuine savings by some lenders. So you shouldn’t need to show additional savings in a bank account.

  • Bub M

    Hi, I have a query. I had been looking for a property and recently found an ideal 2 bedroom house worth $290k in a Sydney suburb. I want to borrow the entire $290k as I don’t have enough deposit. Is there a way to borrow the full amount without any deposit?

  • Hi Bub M, there are a few ways that you can borrow 100% of the property value, subject to suitability, if you get a little creative or if you have help from your parents. For example, if you can get your parents to go guarantor for you, you can borrow up to 105%. You can also go for a gifted deposit or use equity in an existing property. Please check out our no deposit home loans page for the details:
    https://www.homeloanexperts.com.au/no-deposit-home-loans/

  • lola

    How does a P2C loan work?

  • A P2C loan works in a similar way to a gifted deposit – the parents cover the 9-10% of the property value required for the child’s deposit but instead of simply giving it to them, it’s lent to the lender, who then then lends it to the child at a slightly higher rate. As the child makes the repayments, the lender as well as the parents earn in interest.

  • lil

    What other benefits can a guarantor home loan provide?

  • Aside from being the only way to borrow 100% or more of the purchase price, guarantor home loans will allow you to avoid saving a deposit and save by not needing to pay an LMI premium. Some lenders can even offer discounted interest rates. Plus you can consolidate some minor debts, such as credit cards, when you buy your home.

  • Susan Patrick

    Hallo,
    Mein Name ist Frau Susan Patrick, eine private Darlehen Kreditgeber bei GUARANTEE & TRUST FINANCE LIMITED, die Lebensdauer Gelegenheit verleiht. Brauchen Sie dringendes Darlehen, um Ihre Schulden zu bezahlen, oder Sie benötigen ein Darlehen, um Ihr Geschäft zu verbessern? Sie wurden von Banken und anderen Finanzinstituten abgelehnt? Brauchen Sie eine Konsolidierung Darlehen oder Hypothek? Auf der Suche nach mehr, weil wir hier sind, um alle Ihre finanziellen Probleme ein Ding der Vergangenheit zu machen. Unsere Kredite an Einzelpersonen, die finanzielle Unterstützung benötigen, die eine schlechte Kredit haben oder Geld benötigen, um Rechnungen zu bezahlen, um in das Geschäft mit einem Satz von 2% zu investieren. Ich möchte dieses Medium verwenden, um Ihnen mitzuteilen, dass wir zuverlässige Hilfe und Empfänger anbieten und bereit sind, Darlehen anzubieten. Wir leihen einen Höchstbetrag von 800.000.000,00 in der folgenden Währung: United States Dollars, Euro und Great Britische Pfund.
    So kontaktieren Sie uns heute per E-Mail an:
    (susanpatrick878@gmail.com)
    Und du wirst froh sein, dass du es getan hast
    Vielen Dank.

  • Chanelle

    What are the chances of getting a home loan when partner and I have $30k deposit (not genuine savings) and are earning $75k and $55k respectively. We also have $50k debit.

  • The debt you have is quite significant and will reduce your borrowing power and your credit score. However the $30,000 is a big help.
    You can very likely get approved with a guarantor loan https://www.homeloanexperts.com.au/guarantor-home-loans as long as everything else is fine with your situation.
    You could qualify to buy a small property in some states because they have a high first home owners grant which would boost your deposit to the amount needed.

  • Adam

    How do banks take into consideration “rent” as savings

  • Hi Adam,
    If you’ve got a good rental history then this shows that you’re good with your money.
    You’ll still need a deposit, however it can come from another source e.g. selling your car or a gift rather than from savings.
    We’ve got some more info on it here https://www.homeloanexperts.com.au/genuine-savings/rent-genuine-savings/

  • Daley Sweeney

    what if your buying your grandparents house and they are willing to say you have already given them the £70000 deposit even though you haven’t? we currently pay £1000 a month in rent we can get a mortgage for £1500 a month and we have both just double our salerys so the repayments aren’t a problem just the deposit

  • Lynn

    Me and my boyfriend earn $240,000 combined. Our parents are UK citizens here on holiday and are willing to give us $15,000 to help buy a house or guarantee using a house they own outright that’s in London. We have no savings and have a $200,000 limit on our credit cards which are all paid on time. We know this is a problem for many banks so please help us find one that can okay us for a 95% home loan.

  • Yeah banks will definitely see not having any savings as a credit issue. Your income is high though and timely payments are great but you may have a low credit score due to unsecured debts. Unfortunately, your parents won’t be able to go guarantor unless they use a property they own that’s in Australia. It’s unlikely that you can get competitive deals with the way things are now. However, we can help you get ready to buy and be acceptable to the banks in as short as 3 months. Please check out our prepare to buy program to see how we can help:
    https://www.homeloanexperts.com.au/about_us/prepare-to-buy-program/