No Genuine Savings Home Loan

What is ‘genuine savings’?

Genuine savings is generally money saved or held for at least a period of 3 months. This can include:

Money you have gradually accumulated in a savings account for at least 3 months.
Money that has been held in a savings account for at least months without increasing.
Funds held in a term deposit for at least months.
Shares or managed funds held for at least 3 months.
Proceeds from the sale of another property.
Equity held in another property.
Rental history can be considered as genuine savings by some lenders in lieu of a savings history in a bank account.

First home buyer guide

Learn the ins and outs of buying your first home in our free video series

free discovery call

In just 15 minutes, you’ll start to gain a clearer picture of your financial goals and how to reach them.

FREE DISCOVER CALL

Can I apply for a home loan without any ‘genuine savings’?

Although most lenders require you to have a minimum of 3 – 6 months worth of genuine savings, there may be some options still available to you. Depending on factors such as your rental history and the amount of deposit available below are some examples of sources of deposits that may be considered.

Gift from a relative
Proceeds of the sale of an asset such as a motor vehicle or property
Inheritance
Tax refund
Advance on wages

What is the maximum I can borrow without ‘genuine savings’?

The maximum percentage of the purchase price you can borrow is highly dependent on each lenders policies. For example, some lenders will require you to have a 20% deposit in order to waive the requirement to prove the deposit have been genuinely saved. There are some options that will allow you to borrow a higher percentage as follows:

Borrow up to 90% of the purchase price without genuine savings. We have access to a number of large lenders that can lend 90% of the purchase price without 3 months genuine savings.
Borrow up to 95% of the purchase price without genuine savings. There are a few lenders that allow this but generally you will need to show a good rental history for the past 6-12 months

Borrow up to 100% of the purchase price without genuine savings. This is only available if you have a family member who owns a property and is happy to act as your guarantor.