Genuine Savings & Deposits
What lenders mean by “genuine savings”
Genuine savings refer to funds accumulated through regular, ongoing saving, not just the presence of a deposit.
Lenders assess how a deposit was formed, not only its size.
Why deposit source matters
Deposit source helps lenders assess:
- Financial discipline
- Ability to manage repayments
- Risk of reliance on borrowed funds
A deposit accumulated over time signals lower risk.
Common deposit sources
Lenders may treat the following differently:
- Savings accumulated over time
- Sale of assets
- Gifts from family
- Equity from existing property
Some sources are accepted more readily than others.
When genuine savings are required
Requirements vary based on:
- Loan-to-value ratio (LVR)
- Borrower profile
- Policy and product type
Higher LVR loans generally require stronger evidence of genuine savings.
Why outcomes differ
Differences arise due to:
- Policy interpretation
- Evidence provided
- Structure of the transaction
This explains why similar deposits can produce different results.
How deposits fit into the assessment framework
Deposits affect:
- Capital (one of the Four Cs of Credit)
- Risk exposure
- Policy eligibility
They interact with serviceability and security assessment.
See: The Four Cs of Credit
How to use this information
This explainer helps you understand:
- Why lenders ask about deposit history
- Why some funds are treated differently
- Why timing matters
It does not assess eligibility.
Related assessment explainers
- Borrowing capacity: why it caps out
- Guarantors: how it works
Important information
General information only. No personal advice is provided.