How much can I borrow with no genuine savings?

Most lenders require you to prove that you have saved a 5% deposit.

Luckily, there are some lenders that offer “non genuine savings” loan if you can meet standard lending criteria. Generally speaking, you can:

  • Borrow 90% with no genuine savings: You can borrow 90% from three of our lenders irrespective of the source of your deposit.
  • Borrow 95% with no genuine savings: Most lenders can approve a home loan for up to 95% of the purchase price with no genuine savings (specific conditions apply).
  • Borrow 100% with no genuine savings: 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 don’t consider a gift to be the same as a deposit that you’ve saved yourself.

This is because a saved deposit is excellent evidence that you’re financially responsible and able to make repayments on a home loan.

If your deposit is coming from a gift, please call us on 1300 889 743 because the approval criteria is more complicated than it is 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 but can’t prove to a lender that they’ve 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.

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’ve 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.
  • Some lenders will consider your last 12 months’ rent as genuine savings if you’re currently renting (conditions apply; available with three lenders only).

You can apply for a no genuine savings loan if your deposit is coming from one of these sources:

It’s all very complicated!

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?

If you’re 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 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’re borrowing 85% of the property value or less then generally, there’s no difference in rates or 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, namely you must be able to afford all of your debts at a loaded interest rate and living expenses and have a 10% buffer left over.

To qualify for this loan, you must meet the following guidelines:

  • You must be paying your rent on time (if you’re 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 but note that you’re not allowed to borrow to your limit.

The following exclusions also apply:

  • Purchase or construction of an investment property
  • Vacant land
  • Properties exceeding 2.2 hectares
  • Renovations
  • Refinancing an existing mortgage
  • Debt consolidation
  • Equity release (cash out)
  • Borrowed funds such as personal loans, credit cards or loans from family (gifts are acceptable)
  • Australian expats do not qualify but do qualify for the same interest rates as Australian citizens
  • Line of Credit is not available

If you don’t meet this criteria then you may only qualify for a 90% loan or a 105% 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 is that the other two lenders don’t capitalise the LMI premium on top of the loan amount.

What’s the benefit of capitalising LMI?

If you borrow 95%, the LMI premium will be around 3% of the loan amount.

If your lender doesn’t add this onto the loan then you’ll only receive 92% of the property value after the premium has been paid!

This means that for a $500,000 purchase, you’d need to find another $15,000 to complete the purchase!

If the premium is capitalised, then the lender will approve your home loan for 98% of the property value, leaving 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 haven’t increased or why there was a large lump sum deposited into your account.

In most cases, there’s no need to pretend that you saved your deposit yourself because there’s 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’re 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:

  • 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:

  • 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

    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:
    Und du wirst froh sein, dass du es getan hast
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  • 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 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

  • 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:

  • Michael

    Hi there, I earn $64K gross and my parents will be gifting me $20K to help me with buy a house. I have been living at one of my parents’ property since November 2016 and would like to buy the property for $271K.

    (1) Can renting privately be counted as “geniune” savings?
    (2) I don’t have bank statements for proof since the rent comes out of my salary directly into their bank account. Will this be an issue?
    (3) I have paid $10K in rent and this will be counted towards the payment of the house.
    (4) I have a car loan that I will be paying off early in full by 16/11/2017.

    Am I able to get a home loan for $241K ($270K minus $10K minus $20K) for my situation?

  • Hi Michael,
    Good questions and thank you for posting.
    (1) In rare cases it can be. It’s an exception to policy so it’s very hit and miss.
    (2) Yes this is a problem. We’d need to show 6 months payslips to prove this and it may or may not be accepted.
    (3) This is known as a ‘favourable sale’ and lenders have separate policies for this.
    (4) This is good please show evidence that you’ve been making extra repayments. This looks good to a bank.

    Overall yes you would qualify. The question is if you would qualify for a genuine savings loan or a no genuine savings loan. Either way you should get an excellent rate, just the LMI premium would be higher if you get a non-genuine savings loan.

    The location of the property will be important for borrowing 90% or 95%.

  • Amy Wiles

    hi there just wondering with using my rental history as genuine savings will there be an issue with the fact that I only recently found out my rent wasn’t paid on correct day I used to pay it when I got paid each week but has always been paid every week for past 4 years at this property and my real estate are happy to write a letter stating rent always paid every week. I have been saving since may this year and we aren’t going for loan till November so does that show enough genuine savings? come November we will have $13000 saved ourselves $15000 gift from parents and are eligible for $20000 grant from government and are looking at house n land package of round $475000

  • Hi Amy,
    With some lenders this will be a problem and for others it will be ok. With genuine savings they can be very strict at times!
    I expect if we have the letter from your agent and we apply with the right bank then we should be fine.

  • Olive E.

    Hi! I have a 40k savings, Im a nurse but on casual employment with 90k annual income. Im qualified for the FTHOG, 7k credit limit, no other loans, good with payments on rents and bills, no guarantor. I fear that being employed casually would affect my application for a home loan. I would like to borrow 650k and get a home soon. What are my chances of getting an approval for a home loan with less deposit and hopefully no LMI?

  • Hi Olive,
    We’re experts in lending to casual employees and we’ve written a page about it here
    If you’re over 12 months in your role this will be fine. If you’re over 3 months in your role then we have lenders that can assist however most lenders require 6 – 12 months in your role before they will consider your loan.
    Your savings history makes your case much stronger. I’m not sure if a $90k income will allow you to borrow $650k, you may need to reduce your max purchase price to be able to qualify.
    Unfortunately you wouldn’t qualify for waived LMI as Nurses are not included in Medico discounts. Here’s some more info in waived LMI

  • Barley

    Hi, are there banks that still offer 95% loans to buy a home to live in?

  • There are a few lenders who may allow you to borrow 95%, however there are stringent lending criteria involving your credit history, employment, your asset position compared to debt and what income evidence you can provide. Additionally, they’ll require you to have proof that you have a deposit of 5% in genuine savings to approve your home loan. You can read more about genuine savings here.
    If you want to know whether you qualify for a 95% loan or not, please call us or enquire online to speak to a mortgage broker and find out further.

  • tesla

    I recently started working as a web developer at travello. I haven’t been able to save much but I still want to buy a house. I have heard that there are lenders who can provide a home loan even if you don’t have much savings. What is the most I can borrow if I have a small deposit?

  • Hey tesla.
    The majority of Australian lenders require you to prove that you have saved at least a 5% deposit before they can approve your home loan. However, there are some lenders who can let you borrow using a guarantor loan.
    First home buyers like yourself can borrow up to 105% of the property value and you wouldn’t need to have genuine savings either. You can find out more about guarantor home loans on our website.
    However, remember that even with a guarantor loan, you would still have to prove your ability to make your home loan repayments to the lenders. The fact that you’re on probation may be an issue with some lenders but not with others, particularly if you’ve worked in the same industry for a while and you’re earning a full-time wage.

  • Sisyphus

    I’m planning to buy a property with my Australian partner. She recently completed her probation at Australian Capital Financial Services Pty Ltd. I’m a permanent resident and work as a financial consultant in the same company. We’re looking at a budget of $500,000 and we have saved $20,000 for that. I’m planning to bring $60,000 my family saved for me from my native country India. Will the bank accept this overseas transfer?

  • Hi Sisyphus,
    Most lenders require that your entire deposit be funds you saved with regular deposits into a savings account over a period of 3 months. This is known as genuine savings. However, there are few lenders who don’t require your funds to be genuinely saved if you’re only borrowing up 85% of the property value.

    It looks like you have a 16% deposit if you add your ancestral funds which is great. You’ll just need to come up with a little more to cover the costs of completing the purchase including conveyancing fees and other legal costs.
    If you’re transferring funds from overseas to use as a deposit, please go through this page about how you can do it easily.
    Call us on 1300 889 743 or fill in our free assessment form and we can work out which no genuine savings lender you can qualify with.