What is genuine savings?
Genuine savings is the portion of a deposit lenders require to be accumulated over 3+ months in your own account — proves you can save consistently, distinct from gifted, inherited, or windfall funds.
Lenders require 'genuine savings' to evidence the borrower's ability to accumulate funds over time, distinct from one-off windfalls. The standard requirement is 5% of the purchase price held in your own bank account for 3+ months, with regular deposits visible on statements.
What counts: savings account balances accumulating over 3 months, term deposit balances older than 3 months, shares held over 3 months. What doesn't count: gifted deposits (parental gifts), inheritance, lottery wins, tax refunds, BAS refunds, FHOG. Lenders distinguish these because they don't evidence savings behaviour.
Workarounds for non-genuine-savings buyers: pay 12+ months of rent on a fixed lease (most lenders accept rental payment history as evidence of disciplined cashflow management), use a guarantor (the equity pledge can replace the genuine savings requirement), or wait 3 months after the gift hits your account so it 'seasons' into a saved balance.
genuine savings requirement · 3 month savings · savings history
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- Loan-to-value ratio (LVR) — LVR is the size of your home loan expressed as a percentage of the property's appraised value — a $400,000 loan on a $50…
General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.