When you are purchasing a property, most banks require you to contribute “genuine savings” towards the purchase. This is money that has been held or saved over a minimum of three months. Generally it is between 3% and 5% of the purchase price.
Genuine savings is usually only required if you borrow more than 80% of the purchase price. It includes the following:
It does not include any lump sum cash that has been held for less than three months, such as first homeowners grant, gifted funds, borrowed money etc.
A) Genuine savings: You received a bonus from work in the form of some cash three months ago, and have maintained the balance in your account ever since.
B) May be Genuine: You sold a house or shares six months ago, but have been spending the money ever since. You would need to provide a very good explanation to the bank.
C) Genuine savings: The savings account has increased over time using money from your wages.
D) Not genuine savings: Your savings account shows that your deposit is partly made up of a tax refund or other irregular income.
For more detailed information, contact your Naritas credit adviser.