Home Loans: What Funds Can You Use as Genuine Savings?

Genuine savings are personal funds lenders pay close attention to when sizing up borrowers in Melbourne suburbs or any other part of Australia, for that matter. As of late, banks require home loan applicants to come up with genuine savings equivalent to at least 5% of the property’s purchase price.

Peppercornhill.com.au suggests learning home loans before purchasing a house in Donnybrook or whichever community. When buying real estate in Whittlesea, VIC, or in any neighbouring towns, here are the funds you can use as genuine savings:


Money kept in your savings account is perhaps the most basic form of genuine savings that you can present. Some lenders request for a six-month savings history, but many need want to see you hold that money for three months. If you can maintain adequate funds in your bank for 90 days, most lenders would consider you a capable borrower.


You can use consistent rental payments as genuine savings in lieu of regular bank deposits. After all, you’re practically replacing your monthly rental costs with home loan payments once you own a house. Usually, the longer your rental history, the less deposit you need to pay.

Deposit Paid to a Builder

When building a new house on vacant land, you can use the deposit you made to a builder, developer or real estate agent. For as long as the other party has held it for over three months, your prospective lender would most likely consider it genuine savings. However, you have to prove that the money was in your bank prior to the payment.

Salary Sacrifice

Have you been making salary sacrifice under the First Home Super Saver Scheme? Those funds can count also as genuine savings as these contributions originated from your pay.

Many things can count as genuine savings, except for gifts, inheritances, tax refunds and bonuses. Because deposit policies vary from lender to lender, speak with your prospective bank to know exactly what you can and can’t use as genuine savings.