Updated: November 2026
Genuine savings are funds that a home loan applicant has accumulated or held over time. Some lenders require evidence of genuine savings when a buyer applies with a smaller deposit or higher loan-to-value ratio (LVR).
The requirement is designed to show that the buyer can manage money consistently and has not relied entirely on funds received shortly before applying. However, there is no single genuine-savings rule used by every lender.
The amount required, acceptable sources, evidence period and possible alternatives vary between lenders, mortgage insurers and home loan structures.
If you are preparing to purchase your first property, our First Home Buyer home loan service explains how CBM Mortgages can help you assess your deposit, borrowing capacity and suitable lender options.
What are genuine savings?
Genuine savings generally means money or eligible assets that the applicant has built up or held for a lender’s required period.
Depending on the lender, genuine savings may demonstrate that the applicant:
- can regularly set money aside;
- can manage income and expenses;
- has maintained control of the deposit funds;
- is less reliant on recently borrowed or gifted money; and
- may be better prepared to meet regular home loan repayments.
Genuine savings are not the same as the total funds required to complete a purchase. A buyer may satisfy the genuine-savings test but still need additional money for the remainder of the deposit, transfer duty where applicable, conveyancing, inspections, settlement adjustments and other costs.
When do lenders require genuine savings?
Genuine-savings requirements are most common with higher-LVR home loans.
A lender may apply a genuine-savings test when:
- the buyer has a deposit below 20%;
- the proposed LVR exceeds the lender’s policy threshold;
- Lenders Mortgage Insurance is required;
- the deposit includes gifted or recently received funds;
- the application relies on rental history as an alternative;
- the lender or mortgage insurer requires a minimum contribution from the borrower; or
- the application presents other credit or deposit risks.
Some lenders may apply the test above 80%, 85% or 90% LVR, while others may use different thresholds or waive the requirement for particular loan structures.
The exact rule should be checked before the buyer exchanges contracts or pays a non-refundable deposit.
How much genuine savings might be required?
Some lender policies require genuine savings equal to approximately 5% of the property’s purchase price. Other lenders may calculate the requirement differently or apply no genuine-savings test below a particular LVR.
For example:
| Property purchase price | Example 5% genuine-savings amount |
|---|---|
| $600,000 | $30,000 |
| $800,000 | $40,000 |
| $1,000,000 | $50,000 |
These are examples only. The relevant lender may require a different amount, accept different sources or apply a separate mortgage-insurer requirement.
How long must genuine savings be held?
A common lender requirement is for eligible funds to have been accumulated or held for at least three months.
However, the required period is not universal. Depending on the lender and source of the funds, the period may be:
- three months;
- six months;
- another specified period; or
- not required under a particular policy.
The buyer should retain complete statements showing the source, ownership and history of the funds. Moving money between accounts does not necessarily reset the history if the transaction trail remains clear.
What may count as genuine savings?
Depending on the lender’s policy, acceptable genuine savings may include:
- regular savings accumulated from employment income;
- money held in a savings account or term deposit for the required period;
- shares or managed investments held for the required period;
- proceeds from investments that satisfy the lender’s holding rules;
- equity held in another residential property;
- sale proceeds from an eligible property or investment;
- extra repayments made towards an existing home loan;
- an off-the-plan deposit paid and held for the required period; or
- other funds specifically accepted under the lender’s policy.
Funds generally need to be held in the applicant’s name or be clearly attributable to the applicant.
The lender may ask for bank statements, investment statements, sale documents, transaction histories or other evidence verifying the source and ownership of the money.
What may not count immediately as genuine savings?
Funds received shortly before an application may still help fund the purchase but may not immediately satisfy the lender’s genuine-savings test.
Depending on the lender, examples may include:
- a recent gift from a family member;
- an inheritance received recently;
- a tax refund;
- a work bonus;
- gambling or competition winnings;
- the sale of a vehicle or personal asset;
- a government grant;
- borrowed deposit funds;
- a personal loan or credit-card advance; or
- cash without a verifiable source.
This does not mean that every item above is unusable. Some lenders may accept the funds towards the deposit while requiring a separate genuine-savings contribution. Other lenders may treat the funds as genuine savings after they have been held for the required period.
The treatment depends on the lender, LVR, mortgage insurer and evidence available.
Can a family gift become genuine savings?
Potentially. A family gift may be acceptable as part of the buyer’s deposit, but its treatment varies.
A lender may require:
- a signed gift letter confirming the funds are not repayable;
- evidence showing the money came from the family member’s account;
- the funds to be held in the buyer’s account for a specified period;
- a separate genuine-savings contribution from the buyer; or
- evidence that the buyer can still pay the remaining purchase costs.
A repayable family contribution is not a gift. It may be treated as a debt and could affect borrowing capacity.
Where family money is subject to repayment, shared ownership or another condition, the parties should consider obtaining legal advice and documenting the arrangement properly.
Can inheritance count as genuine savings?
An inheritance may be acceptable towards the purchase, but whether the funds count as genuine savings depends on the lender’s policy and how long the buyer has held the money.
The lender may request:
- estate documentation;
- evidence of the payment into the buyer’s account;
- bank statements showing the funds remain available; and
- evidence that the buyer can meet the remaining purchase costs.
A recent inheritance may be accepted as deposit funds but not as proof of a regular savings history. After the required holding period, some lenders may treat the funds differently.
Can rental history be used instead of genuine savings?
Some lenders may accept a satisfactory rental history as an alternative to the usual genuine-savings evidence.
Requirements vary, but may include:
- a rental history covering a specified period;
- rent paid through a licensed real estate agent or property manager;
- a clear rental ledger showing payments were made on time;
- the lease being in the applicant’s name;
- the proposed home being owner-occupied;
- the buyer still having the required deposit and purchase costs; and
- the application remaining within the lender’s maximum LVR.
Private rental payments, informal family arrangements or incomplete records may not qualify under a lender’s rental-history policy.
Rental history replaces only the savings-history test where the lender permits it. It does not provide the buyer with the cash required for the deposit and costs.
Can shares or managed funds count?
Shares, managed funds and other eligible investments may count under some lender policies when:
- the investments are held in the applicant’s name;
- they have been held for the required period;
- their ownership and value can be verified;
- sale proceeds can be traced into the applicant’s account; and
- the funds will be available when required for settlement.
Market values can move. A buyer relying on investments for settlement should allow for price changes, sale timing and tax consequences.
Does equity in another property count?
Equity in an existing property may be accepted as genuine savings or as part of the buyer’s contribution under some lender policies.
The lender will generally consider:
- the value of the property;
- the outstanding home loan balance;
- the proposed structure for accessing the equity;
- the combined debts and repayments;
- the applicant’s borrowing capacity; and
- whether the existing property will be retained or sold.
Usable equity is not the same as cash savings. Accessing equity generally involves further borrowing and may increase the applicant’s total debt.
Genuine savings and the Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme requires eligible first home buyers to contribute a minimum 5% deposit, subject to the current scheme and participating-lender rules.
The scheme removes the need to pay LMI for an eligible purchase, but it does not remove the participating lender’s credit assessment or deposit-evidence requirements.
Deposit sources and genuine-savings treatment can vary between participating lenders. Buyers should not assume that scheme eligibility means every participating lender will accept the same source of funds.
Check the current program details on the official Australian Government 5% Deposit Scheme website.
Read our guide to the Australian Government 5% Deposit Scheme for more information about eligibility, property limits and participating lenders.
Does a guarantor remove the need for genuine savings?
Not automatically. A family guarantee may provide additional security and help reduce the cash deposit or LMI requirement, but lenders may still require evidence of savings, a minimum borrower contribution or sufficient funds for purchase costs.
A guarantor may become responsible for the guaranteed debt if the borrower cannot repay the home loan. An asset used as security, including the guarantor’s home, may be at risk.
The guarantor should consider independent legal and financial advice before signing any guarantee.
Read the MoneySmart guidance on going guarantor before considering this option.
Documents that may be required
The lender may ask for evidence including:
- transaction-account statements;
- savings-account statements;
- term-deposit statements;
- investment statements;
- rental ledgers;
- gift letters;
- inheritance or estate documents;
- property-sale contracts and settlement statements;
- evidence of funds transferred between accounts;
- evidence of the deposit already paid to a selling agent; and
- documents explaining any large or unusual transactions.
Avoid moving money repeatedly between accounts shortly before applying unless the full transaction trail can be provided.
Genuine savings compared with funds to complete
| Term | What it generally means |
|---|---|
| Genuine savings | Funds or eligible assets accumulated or held in a way accepted under the lender’s savings-history policy. |
| Deposit | The buyer’s contribution towards the property’s purchase price. |
| Funds to complete | The total money the buyer needs for the deposit, purchase costs and settlement. |
| Financial buffer | Money retained after settlement for unexpected expenses and ongoing ownership costs. |
A buyer can satisfy one requirement without satisfying the others. For example, a buyer may have sufficient genuine savings but not enough total funds to complete the purchase.
How to prepare your savings evidence
A practical process is:
- Estimate the deposit and total purchase costs required.
- Confirm the likely LVR and whether genuine savings may be required.
- Identify the source and history of every part of the deposit.
- Keep complete account and investment statements.
- Document gifts, inheritances and asset sales.
- Obtain a rental ledger if rental-history substitution may be relevant.
- Avoid taking new personal debts to fund the deposit without discussing the effect on borrowing capacity.
- Check the selected lender’s policy before exchanging contracts.
Review our guide to saving a deposit for your first home when building your deposit plan.
Our article on buying with less than a 20% deposit compares LMI, government-backed and family-supported pathways.
How CBM Mortgages can help
CBM Mortgages can help you understand how different lenders may assess your deposit and genuine-savings evidence.
We can help you:
- review the source and history of your deposit funds;
- estimate the total funds required for the purchase;
- identify lenders whose policies may suit your circumstances;
- explain potential genuine-savings or rental-history requirements;
- assess your borrowing capacity and indicative LVR;
- compare suitable home loan options; and
- prepare the required documents before applying.
Lenders and mortgage insurers determine their own genuine-savings, deposit and credit requirements. CBM Mortgages can compare relevant policies but cannot guarantee approval.
Unsure whether your deposit meets genuine-savings requirements? Visit our First Home Buyer home loan service or contact CBM Mortgages to discuss your deposit, evidence and borrowing position.
Frequently asked questions
Disclaimer: This article provides general information only and does not constitute personal financial, legal, tax or credit advice. Lender policies, mortgage-insurer requirements and government-scheme rules can change. Consider obtaining advice appropriate to your circumstances before acting.
