Help guide
Genuine savings: what lenders count as your own
Why high-LVR lenders want 5% saved over three months, which deposit sources pass without argument, how gifts are treated, and what the scheme layer changes.
What the phrase actually means
Genuine savings is not a statutory term and there is no single definition to quote. It is a credit policy concept, reinforced by mortgage insurer requirements on high loan-to-value lending, and it describes evidence that part of your deposit accumulated through your own behaviour rather than appearing in one movement shortly before you applied.
The risk the policy targets is early default. A borrower who has demonstrably saved while paying rent has shown something real about their capacity to absorb a repayment; a borrower whose deposit arrived last month has not, whatever the income says. That is the entire logic, and it explains why the tests are about pattern and traceability rather than about the amount.
The 5 per cent and the three months
The common shape of the policy, in the 90 to 95 per cent loan-to-value range where it bites, is evidence of around 5 per cent of the purchase price held as genuine savings — either accumulated through identifiable regular deposits, or seasoned in an account for roughly three months. Both the percentage and the seasoning period are lender and insurer policy, and both vary.
Below 80 per cent the question usually disappears, because there is no mortgage insurer behind the loan and the equity buffer does the work instead. That is why the same borrower can be asked to prove a savings pattern at one deposit level and asked nothing at another, and why the honest answer to "do I need genuine savings" is "at what loan-to-value ratio, and with which lender".
Sources that pass without an argument
Regular salary transfers left in a savings account and consistent with your payslips and employer name. Bonuses and commissions matched to tax documents or an employer letter where the amount jumps. Proceeds from selling another property, matched to the contract and the settlement statement. A maturing term deposit whose original funding is visible in the account history. A First Home Super Saver release with ATO correspondence behind it.
What those have in common is not respectability, it is that an assessor can follow the money without needing to ask you a question. Ninety days of statements taken straight from the institution as PDFs is the standard sample, and the cleanest files are the ones where every credit over a few thousand dollars explains itself on the page.
Sources that need more evidence
A large one-off family transfer raises a threshold question: gift or loan? A gift usually needs a signed gift letter, donor identification, and sometimes evidence the donor had the money. A loan is a liability and gets assessed as one, which changes serviceability rather than just the paperwork. Cash deposited late attracts anti-money-laundering and source-of-funds questions about where it was held and why.
Cryptocurrency realised to Australian dollars is workable with exchange statements and matching bank credits, but expect friction and allow time to assemble the history. Business account withdrawals need clean separation between personal equity and working capital. And a spike in personal loan or buy-now-pay-later activity before application reads as a borrowed deposit, which is inconsistent with most policies even where the repayments look modest.
Gifts, and the two ways to make them work
A gifted deposit is common and it is not a problem, but it often fails a genuine savings test in the form people expect. Parents transferring $80,000 eight weeks before application will usually cover the shortfall to complete without satisfying a 5 per cent genuine savings requirement — unless the funds sit seasoned for the policy period, or that particular lender’s policy expressly permits gifts.
The two workable routes are time and structure. Time means transferring the money early enough to season, which is why this conversation belongs six months before an exchange rather than six weeks. Structure means a family guarantee, where a parent offers a limited charge over their own property to reduce the effective loan-to-value ratio — which changes the question rather than answering it, and which requires the guarantor to get independent legal advice.
What the scheme layer changes
The Australian Government 5 per cent Deposit Scheme, renamed on 1 October 2025 when income caps and the 35,000-place limit were both removed, lets eligible first home buyers borrow on a 5 per cent deposit without paying lenders mortgage insurance. Property price caps still apply by location — $1.5 million for NSW capital city and regional centre purchases, $950,000 for the Victorian equivalent, $1 million for the ACT, and lower figures elsewhere.
Scheme eligibility and loan approval are two different tests. Participating lenders still run a full credit assessment, still apply their own genuine savings policy, and still shade income and benchmark expenses. A property can be affordable for you personally and still fail the cap, so check the cap before you pay a holding deposit rather than afterwards.
Genuine savings is not funds to complete
These are two different numbers and confusing them is the most common planning error we see. Genuine savings concerns the quality of part of your contribution. Funds to complete is the total cash the settlement demands: deposit, duty where it applies, conveyancing, inspections, registration and transfer fees, adjustments, and a buffer for the first few months. You can satisfy one and fall short on the other.
A valuation landing below the contract price widens that gap, and it is a live risk rather than a theoretical one while national values are falling. If a lender values a property below what you agreed to pay, the shortfall comes out of your cash and not out of the loan.
Azure Home Loans maps which lender’s genuine savings policy your deposit story actually fits and what evidence to assemble in what order, before an application is lodged. On low-deposit files that is a document sequencing exercise at least as much as a lending one.
The percentages, seasoning periods and scheme caps above are general information as at September 2026 rather than any lender’s policy or a statement of your eligibility. Confirm scheme caps with Housing Australia and lender requirements through an actual credit assessment before you commit to a purchase price.
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FAQ
How much genuine savings do I need for a home loan?
Commonly around 5 per cent of the purchase price where you are borrowing in the 90 to 95 per cent range, either saved through identifiable regular deposits or seasoned in an account for roughly three months. Both figures are lender and mortgage insurer policy rather than law, and below 80 per cent the question often disappears.
Do gifted deposits count as genuine savings?
Often not in the form people expect. A gift will usually cover your total cash requirement but may not satisfy a genuine savings test unless it has been held for the policy period or the lender expressly allows gifts. Expect to provide a gift letter, donor identification, and sometimes evidence the donor held the funds.
How long does money need to sit in my account?
Around three months at many lenders for high loan-to-value loans, though the period varies and some accept a demonstrated savings pattern instead of a seasoning window. Because the standard evidence sample is ninety days of statements, funds arriving inside that window are precisely the ones an assessor will ask about.
Does rent I have paid count towards genuine savings?
At some lenders it can substitute for part of the savings story, usually through a rental ledger from a licensed agent showing an unbroken payment history. It is policy dependent and rarely a complete answer on its own. Private rent paid to a family member is considerably harder to use as evidence.
Can I use money from selling shares or crypto as my deposit?
Yes, with evidence. Share sale contract notes or exchange statements plus matching bank credits usually satisfy the trail. Crypto attracts more questions because tracing is harder, so allow extra time and keep the record of how the original funds were acquired, not only the conversion into Australian dollars.
Will a personal loan for my deposit be accepted?
Almost never. A borrowed deposit is inconsistent with most genuine savings policies, and the loan itself reduces serviceability, so it counts against you twice. Lenders read both the credit file and the bank statements, so a personal loan drawn shortly before application is visible and will not pass without comment.
Does the 5 per cent Deposit Scheme remove the genuine savings requirement?
No. The scheme removes lenders mortgage insurance for eligible first home buyers on a 5 per cent deposit, and since 1 October 2025 it has had no income caps and no cap on places. Participating lenders still run a full credit assessment and still apply their own genuine savings and deposit source policies.
Is genuine savings the same thing as my deposit?
No. Genuine savings concerns the quality of part of your contribution. Your deposit is a number, and funds to complete is a larger number again: duty where it applies, conveyancing, inspections, registration fees, adjustments and a buffer. Passing the genuine savings test and still being short of cash at settlement is entirely possible.