Hi Pawn, Really good question! There are 3 ways a bank will consider genuine savings. The first is a record of you placing funds into a savings or other type of account on a regular basis over a 3 month period. The second is to hold 5% of the property value in a term deposit account without making any withdraws. and the third is to have managed funds or shares held for three months in the same fashion as the term deposit. If you do not have savings you may look at a family guarantee type loan where a family member that has equity in their home can help you out. Please feel free to touch base with me if you want to explore this further. Best of luck.
Pawan, thanks for your question. Please feel free to let me know if you like for some detailed analysis how you can get a home loan. However, genuine savings are considered as just any savings that have been saved over time, usually over 3-6 months. There are other options that you can use to show "genuine savings" which can be in other view just gifted funds that have been in your savings account for longer than 3-6 months. Otherwise rent, term deposit, equity, shares or more can be considered as genuine savings and it has to be more than 5%. Log onto my profile and inquire within for more details and any other questions you might have. Regards, Milan
Hi Pawan, Adam explained very well.If you have any further inquiry or you are looking to purchase a property and seeking pre-approval, feel free to click on my profile to assist you further.If you are a first home buyer and don't know how to prepare and what you need, don't worry I can assist you.Cheers
Hi Pawan if you are renting and the lease is in your name some lenders will also use this to calculate genuine savings. As they will also consider a lump sum in an account for 3 months. Regards Erica
Hi Pawan. Genuine savings is generally classified as being able to verify a consistent savings record and over a minimum of 3 months and represent 5% of the proposed purchase price. I hope this helps! Adam
John
Morning Pawan, hope you are well. Many brokers here have already explained this perfectly. There are some lenders who will consider good payment of rent (in a properly tenanted property) as 'savings' as the argument is "I am unable to save due to paying rent". I know you are presented with a lot of options, and also brokers. I would love to walk with you in your journey and grow with you. Good luck!