WHAT ARE GENUINE SAVINGS?
What is considered “Genuine Savings” and why do most banks require it even if you have a good income?
In response to the increase in first home buyers applying with no deposit or savings, most Australian lenders now require mandatory genuine savings for most home loans.
We work with several lenders that don’t require genuine savings, but most do, and most work somewhere within these guidelines.
- 80% of property value: Genuine savings not required.
- 85% of property value: Genuine savings not required by most lenders.
- 90% of property value: Genuine savings required by most lenders
- 95% of property value: Genuine savings required by almost all lenders
- 100% of the property value: Guarantor loans required for buyers without genuine savings.
To learn more, please enquire online or call us on 0476 111 000 to speak with one of our specialist mortgage consultants.