| Genuine Savings Explained

When applying for a home loan one of the important criteria a lender will ask for is a history of “Genuine Savings”.  These are funds that you have gradually saved by yourself. 

It proves to the lender that you have the self discipline over time to save a certain amount.  It helps them assess your capacity to make monthly loan repayments.

Usually lenders will be looking for proof of at least 5% of the purchase price in genuine savings.  Each lender has slightly different definitions and requirements. 

Genuine savings although need to be substantial, may only account for a portion of your deposit.

What do lenders consider as “genuine savings”

  • At least 3 months of accumulated savings
  • A term deposit held for at least 3 months
  • Shares or managed funds held for at least three months

Some lenders will consider rent that you have been paying over time (preferably 6-12 months) as part of genuine savings.  Speak with your mortgage broker about this.

What is not “genuine savings”

  • First Home Owners Grant
  • Inheritance
  • Gifts
  • Tax Refunds
  • Loaned money
  • Money from the sale of something like a car

Different lenders have different rules on genuine savings (most will require some proof).  

How Much Genuine Savings do You Need?

Typically you will be asked for a minimum of 5% of the purchase price. (On a $600,000 home you would need $30,000 in genuine savings).  Then you can make up the rest of the deposit from other sources.  

The best strategy is to speak with your Mortgage Broker.  They will be able to advise and recommend the best lender suited to your individual situation.

Disclaimer:  Although all care is taken.  We do not give any warranty whatsoever to the accuracy of any content.
This is not meant to be financial or professional advice and is only of general nature.  You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever.  We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever

Gino Sotto

Residential Sales Agent
Raine & Horne Parramatta

P: 0426 228 014
E: gino@rhparramatta.com.au
W: raineandhorne.com.au/parramatta


Gino’s professional attitude and friendly nature was a breath of fresh air.  Thank you for your support and professionalism throughout the sale of our property.  Appreciate the extraordinary lengths you went to to achieve an outstanding result!
Jeanne Appleton, Northmead. NSW

Excellent communication and great confidence when negotiating with buyers. Gino focussed his attention on achieving a sale price well above our expectations. Well done Gino and your selling team.
Ralph and Maryanne Pasero, Rydalmere NSW

I found the sales team at Raine and Horne Parramatta a pleasure to deal with. Their expertise and continuous updates in selling our home was outstanding. Great work Gino!
Rochelle and Casba Webb , Parramatta NSW

A genuine performance-based selling agent Gino Sotto helped us achieve a quick sale, which saved us a lot of time and money. We would not hesitate recommending Gino & his sales team to others.
Lawrence and Kim Davies . North Rocks NSW

We were delighted with Gino Sotto and the sales price achieved for our house and the specialist approach to selling residential real estate in our area.
Danny and Manal Ayoub Merrylands NSW