Genuine Savings Calculator

Genuine savings are funds you've saved over time (minimum 3 months), held in your accounts. Accepted forms: savings account deposits ($1,000/month for 3+ months), term deposits, shares/managed funds (held 3+ months), equity in existing property, sale proceeds from assets owned 3+ months. NOT accepted: windfall gifts received less than 3 months ago, personal loans, credit card advances, recent inheritances, cash deposits without proof of source. Example: $30,000 deposit requirement needs $30K saved consistently over 3-6 months, not a single $30K deposit 2 weeks before application. Lenders verify via 3-6 months of bank statements.

Partially, but with conditions. Gifts are NOT genuine savings for the first 3 months, then become genuine savings if held in your account. Typical scenario: Parents gift $50,000 in January. If you apply for loan in February, $0 counts as genuine savings (gift too recent). If you apply in May (4 months later), $50,000 counts as genuine savings. However, some lenders accept "non-genuine savings" gifts from immediate family if total deposit exceeds 10% and you have some genuine savings (even $5,000-$10,000). Family Guarantee loans bypass genuine savings requirement entirely. Strategy: receive gift 3-6 months before applying, or use Family Guarantee if timing tight.

Required genuine savings depends on deposit size: 20%+ deposit (80% LVR): No genuine savings required - can use gifted funds entirely. 10-20% deposit (80-90% LVR): Need 5% genuine savings (rest can be gifts/non-genuine). Less than 10% deposit (90-95% LVR): Need entire 5-10% as genuine savings. Example scenarios: $600,000 property with $120,000 deposit (20%): $0 genuine savings required. $600,000 property with $60,000 deposit (10%): Need $30,000 genuine (5%), $30,000 can be gifts. $600,000 property with $30,000 deposit (5%): All $30,000 must be genuine savings. First home buyers with Family Guarantee can avoid genuine savings requirement entirely.

Lenders review 3-6 months of complete bank statements for all accounts. They check: 1) Regular deposits/savings pattern - automated monthly transfers from salary, not sporadic large deposits. 2) Source of funds - salary credits, dividends, rent received (with lease agreement). 3) No "bed and breakfast" funds - borrowing money temporarily to inflate balance, then returning it. 4) No unexplained cash deposits - must prove source (e.g., sale of car with receipt). 5) Consistent balance growth - not declining then suddenly increasing pre-application. Red flags: $30,000 cash deposit 1 month before application, balance fluctuating wildly, regular gambling transactions, multiple overdrafts. Clean pattern: $2,000-$5,000 monthly savings from salary over 6+ months.

Yes, rent payment history can demonstrate saving discipline if you're paying rent equal to or higher than future mortgage repayments. Requirements: Rental receipts or bank statements showing regular rent payments, 6-12 months history, current landlord reference, and importantly - you're also accumulating savings simultaneously (even $500-$1,000/month). Example: $2,500/month rent for 12 months + saving $1,000/month = strong application. Just paying rent without accumulating savings doesn't count as genuine savings, but strengthens application by proving repayment capacity. Some lenders offer "Rent-to-Buy" pathways recognizing consistent rent payment history as equivalent to mortgage serviceability demonstration.

High income alone doesn't bypass genuine savings requirement for low-deposit loans (under 10% deposit), but provides options: 1) Save aggressively for 3-6 months while renting - $150K income can save $30K in 3 months living frugally. 2) Use Family Guarantee - eliminates genuine savings requirement, borrow up to 105% with parents as guarantors. 3) Target 10-15% deposit range - only 5% needs to be genuine, rest can be gift/bonus. 4) Live with parents 3-6 months - save $5,000-$8,000/month on $150K income. 5) Use equity from investment property if you own one. 6) Wait and accumulate - frustrating but 6 months discipline unlocks decades of property ownership. Lenders want to see financial discipline, not just income.

With 20%+ deposit (80% LVR or less), lenders are more flexible about fund sources as you avoid LMI and pose lower risk. Accepted without genuine savings: gifts from family (with signed declaration), bonuses or commissions received recently, sale of assets (car, shares, caravan), inheritance, proceeds from selling previous property, redundancy payouts, tax refunds. Lenders still verify source via: gift letter from parents (stating no repayment required), contracts of sale for assets, bank statements showing bonus/commission credits, inheritance documentation. Red flag: Large unexplained cash deposits still require proof of legitimate source (AML compliance). Bottom line: 20%+ deposit = far fewer questions about fund sources.

Centrelink income can form part of your total income for borrowing capacity, but doesn't typically count as "employment income" for genuine savings verification. However, if you've been saving a portion of Centrelink payments consistently over 3-6 months, those accumulated savings DO count as genuine. Example: Receive $1,800/fortnight Centrelink ($3,600/month). Save $400/month consistently for 6 months = $2,400 genuine savings. Combined with partner's income or other sources, can meet requirements. Some specialist lenders (including non-banks) assess Centrelink recipients more favorably than major banks. Family Tax Benefit and Parental Leave Pay also count toward household income. Key: demonstrate consistent saving behavior regardless of income source.