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Genuine and Non-Genuine Savings For Home Loan

What Counts As Genuine & Non-Genuine Savings For Home Loans?

When applying for a home loan, you need to show your lender that you have savings and have the ability to manage and save money efficiently. For approving your home loan, lenders, banks and financial institutes check your savings. These savings should be genuine. 

Savings can be termed as genuine and non-genuine; these will be further discussed in the blog. Your mortgage broker in Brisbane can help you understand and improve your genuine savings to increase your chances of getting your home loan approved. 

Genuine Savings

A savings that you have in possession for a long time or at least from the last 6 to 12 months can be termed as genuine savings. Whether it is an asset you have for a long time, shares and stocks invested in a company, or a small amount of money you put aside every month, all these can be considered genuine savings. It is one of the many factors you need to consider before applying for a home loan.

The main idea for checking your savings is to be sure you can save the money. However, this does not mean if you do not have any genuine savings, you will not get home loans. Getting a loan is still possible; you need to consult your finance broker in Brisbane, as brokers can help you and recommend options based on your specific circumstances. 

Examples of Genuine Savings

  • Savings compounded in the bank over time.
  • Term deposits are held for a specific period of time (usually 6 months or more than a year).
  • Equity from the sale of a property.
  • Shares held for a long duration.
  • Inheritance money or funds saved in a bank for a long period of time.

Non-Genuine Savings

A non-genuine saving is money, funds or assets that you have recently acquired and cannot show proof of savings. If you show proof of saving or that it has been in your possession for a long time, then it can also be termed as a genuine saving. Consult the best mortgage broker in Brisbane to help you with your home loan process and approval. Many homeowners opt for brokers as they make their work seamless and quick. 

Some common non-genuine savings include inheritance, money won in betting, lottery or gambling, selling an asset, gift and someone else like your parents providing you funds. If you have non-genuine savings, ensure to keep them in your possession or save them for the long term; at least 6 months or more would be beneficial. 

Examples of Non-Genuine Savings

  • Gifts from a family without having proof that shows your saving behaviour.
  • Gains from lottery or gambling.
  • Personal loans or borrowed funds (these cannot be termed as genuine savings).
  • Funds taken through cash withdrawals or credit card advances
  • Unexplained profit of funds without relevant income or savings proof.

Tip: Non-genuine savings, when saved for long-term (for a period of 3 to 6 months or more), can be classified as genuine savings. 

How Much Genuine Savings Is Required For Home Loan?

The amount of savings required can differ from one lender to another. Contact the best finance broker in Brisbane to help you connect with the right lender to meet your savings needs. In general, not every lender or home loan option may require you to show a higher percentage of genuine savings. Generally, you must have at least 5% genuine savings. 

It helps the lender understand and believe that you can save money while managing your ongoing expenses. Once you show them that you can save money and manage finances, your home loan approval chances increase significantly.


Getting a home loan can be a time-consuming and daunting task for many, but if you have genuine savings and follow the process correctly, you can easily get your home loan approved. Contact the best finance broker in Brisbane to make your home loan process seamless and quick. They can better guide you about your chances of loan approval and work on your application to ensure your home loan is approved.

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