Genuine Savings Vs Non-Genuine Savings

Genuine Savings is money/deposit saved gradually over a period of time which a lender would need to evidence through bank statements/savings history or term deposit or inheritance (held in account for at least 3 months prior to date of application). Sale of an asset (home), or equity in existing home is also considered "Genuine Savings."

Genuine savings can be from any of the following sources:
Funds held or accumulated in savings accounts for three months or more
Equity in existing residential property or funds from sale of residential property
Term deposits held for three months or more
Shares held for no less than the last three months
Accelerated loan repayments – where savings have been sacrificed by making accelerated loan repayments over the last three months, the amount of the excess repayments, can be accepted in lieu of genuine savings.
Rental Repayment history - for the last 6-12 months

The following are not acceptable forms of genuine savings:

Gifts or inheritance regardless of how long they have been held for. (unless savings have been sacrificed by making accelerated loan repayments - see genuine savings above)
Proposed Savings Plans or Rental Purchase Plans of any kind
Sale of assets (other than real estate) for example, motor vehicles
First Home Owner's Grant (FHOG)
Funds held in company/business accounts
Builder’s or vendor’s rebate/incentive.

Whilst gifts, borrowed monies and first home buyer's grant is classed as non-genuine savings and whilst not readily acceptable by most lenders, it is considered by others.

Let us know if you had a question about the above and we can make the right recommendations for you and also find a suitable lender.