Deposit and genuine savings
Genuine savings are funds a borrower has held or accumulated over time, usually at least three months, which many lenders require to make up at least 5% of the purchase price when the loan is above 80% LVR.
Deposit and genuine savings, explained.
Savings, term deposits, shares held for the period and equity in existing property generally qualify. Gifts, tax refunds, first home owner grants and sale proceeds often do not, though some lenders accept a gift once it has sat in the account for the qualifying period, and rental history can substitute with some lenders.
The rest of the deposit can come from anywhere legitimate. The rule exists to show a habit of saving, not to test the source of every dollar.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
