Key takeaways
- Genuine savings is money you’ve held and built over time — usually 3+ months in your account.
- Lenders often want around 5% of the price in genuine savings when your deposit is under 20%.
- Gifts, bonuses, tax refunds and grants often don’t count as genuine savings on their own.
- A 20%+ deposit, a guarantor, or rental history can reduce or replace the requirement.
Here’s a nasty surprise for some buyers: you can have the full deposit in the bank and still be told you don’t have enough “genuine savings.” Lenders don’t just want the money to exist — they want proof you built it up over time. Understanding the rule early means you can plan around it instead of being caught out at the worst moment.
Why lenders require it
Genuine savings is a proxy for discipline. A buyer who has steadily set money aside for months has shown they can live below their means and manage regular commitments — exactly the behaviour needed to meet mortgage repayments. That’s why a deposit that suddenly appears carries less weight than one you’ve visibly accumulated.
What usually counts — and what doesn’t
- Counts: money held in your account for at least three months, regular savings deposits, term deposits, and often shares or managed funds held for a period.
- Often doesn’t (on its own): gifts, inheritances, tax refunds, bonuses, and the First Home Owner Grant — though these can still make up part of your total deposit.
Illustrative example. A buyer with a $40,000 deposit made up of $10,000 saved over the past year and a $30,000 gift may find a lender counts only the $10,000 as genuine savings. The gift still helps the total deposit — it just may not satisfy the genuine-savings test on its own.
There are legitimate ways around the requirement. A deposit of 20% or more, a guarantor, or a documented history of paying rent can reduce or replace the genuine-savings test with many lenders. Which path fits depends on your situation.
Planning around it
If you’re still saving, start the three-month clock early and keep the money in your own account. If your deposit includes a gift, pair it with some genuine savings or a lender that’s flexible. And factor genuine savings into your wider deposit plan so it never becomes a last-minute obstacle — part of the groundwork in our first home buyer guide.
Broker Insight. Plenty of buyers have the money but not “genuine savings” in the lender’s eyes. There are legitimate ways around it — a larger deposit, a guarantor, or a lender that counts your rental history.
Not sure your deposit qualifies? Let’s check
We’ll review how your deposit is made up, tell you what counts as genuine savings, and find a lender that fits — gift, savings or both. Free, no obligation.
Book your free game plan callFrequently asked questions
What is genuine savings?
Genuine savings is money you’ve accumulated and held over time — typically funds saved in your own account over at least three months, or sometimes shares or savings you can show a history of. Lenders use it to prove you can consistently set money aside, which suggests you can manage loan repayments. A lump sum that suddenly appears, like a gift or bonus, often doesn’t count as genuine savings on its own.
How much genuine savings do I need?
Many lenders want to see genuine savings of around 5% of the purchase price, particularly when your deposit is under 20% and LMI applies. The exact requirement varies by lender and situation. If you have a 20%+ deposit or a guarantor, some lenders relax or waive the genuine-savings requirement entirely, which is one of several ways around it.
What counts as genuine savings?
Usually: savings held in your account for at least three months, regular deposits building over time, term deposits, and often shares or managed funds held for a period. What typically doesn’t count on its own: gifts, inheritances, tax refunds, bonuses, or the First Home Owner Grant — though these can still form part of your total deposit. Some lenders also accept a history of paying rent as evidence of savings capacity.
This guide is general information only and does not take your personal circumstances into account. It is not financial or credit advice. Government schemes, lender policies, rates and tax rules change over time and eligibility criteria apply. Speak with us for advice tailored to your situation.