Non-genuine savings

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What is non-genuine savings?

Non-Genuine savings are funds that have not been kept in a bank account in your name for a minimum of 3 months or the source of obtaining the money cannot be verified using the Lender’s guidelines. The money can be contributed towards the purchase of a property and be used to pay for fees and charges and additional deposit, but won’t count towards the 5% genuine savings component of a loan.

Examples of Non-Genuine Savings are:

  • A deposit as a lump sum, though lenders may make exceptions if the deposit comes from another property sale
  • Money from an inheritance or gifts
  • An advance on wages or commissions, or a bonus from work
  • A tax refund
  • Money gained from selling an asset, such as a car
  • Money borrowed from somebody else
  • Money you held in a business account
  • The First Home Owner’s Grant (FHOG)
  • A Builder or Developer’s incentive or rebate

Even money that has been saved may be classed as Non-Genuine Savings if it has not been held in a bank account in your name for a minimum of 3 months in the format required by Lenders. Example of this are:

  • Money saved in an overseas bank account
  • Money saved in the bank account of a friend or family member.
  • A loan that has been repaid. Even if you repay the money quickly, it is not evidence that you can save responsibly.

There are options available for ‘non savings loans’ and some Lenders may consider proof of consistent rent payments as genuine savings. Speak to us to see what we can do for you.