Genuine Savings Explained
Christian Stevens, Mortgage Broker
Published December 4, 2025, 1:19 P.M
Learn what counts as it and how to build them effectively for home loan pre-approval. Flint Group Australia guides first home buyers to maximize mortgage approval chances.
Key Facts
- Funds accumulated gradually over time — not gifts, lump sums, or short-term windfalls.
- Lenders, including those partnered with Flint Group Australia, often require it at least 5% of the property purchase price for first home buyers.
- Demonstrates consistent budgeting, financial discipline, and readiness for mortgage repayments.
- Policies vary between lenders, so knowing what counts as this is critical.
- Flint helps borrowers structure and present effectively to maximize home loan approval chances.
What Are Genuine Savings?
They are funds you’ve steadily built up over a minimum of three months in your own account. They show lenders you can manage money responsibly and handle home loan repayments.
Common examples include:
- Regular deposits from salary or other income sources
- Consistent contributions to a dedicated savings or high-interest account
- Term deposits maintained for at least 3 months
Some lenders may accept documented rental payment history as evidence of financial reliability in lieu of traditional savings, providing flexibility for first-time buyers.
What Doesn’t Count as Genuine Savings?
Certain funds, while helpful for your deposit, usually don’t qualify as It
- Gifts from family (unless held for 3+ months)
- Tax refunds, bonuses, or one-off payments
- Proceeds from selling assets like cars or shares
- Borrowed money, including personal loans or credit cards
- Short-term windfalls or large, sudden deposits
Understanding these distinctions is essential when planning a pre-approval strategy with Flint Group Australia, ensuring your savings meet lender criteria.
Why Do Banks Require It?
Demonstrate to lenders that you:
- Can manage your budget and save consistently
- Are a lower lending risk
- Exhibit responsible financial behavior beyond one-off deposits
Most lenders, particularly for loans above 90% LVR, require at least 5% of the property value in it — highlighting the importance of early planning and proper documentation.
Alternatives to Genuine Savings
Some lenders, including those Flint brokers work with, consider alternative evidence of financial reliability:
- 12+ months of documented rental payment history through a licensed agent
- Co-borrowers with verified savings history
- Use of a guarantor loan structure, such as a parental guarantee
A broker like Flint can identify lenders with the most flexible policies, increasing the likelihood of approval for borrowers with non-traditional savings profiles.
Tips for Building Genuine Savings
● Start early: Save regularly into a dedicated high-interest account
● Be consistent: Lenders look for a clear pattern of financial discipline
● Separate funds: Keep its apart from daily spending accounts
● Avoid unexplained deposits: Sudden large transfers before application can raise flags
● Document rental history: If using rent as evidence, maintain clear records
📞 Want Help Meeting a Lender’s Genuine Savings Criteria?
At Flint, we help first-time buyers and borrowers:
- Understand exactly how much genuine savings are required
- Strategically prepare and present savings records for pre-approval
- Identify lenders with flexible policies suitable for your profile
Chat with Flint today and turn it into a strong home loan strategy — get closer to owning your home with confidence and expert guidance.
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