Genuine Savings

What are Genuine Savings?

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:

  • Shares or managed funds that have been held over a three-month period or more.
  • Any cash (from anywhere except borrowings) that has been held for more than three months
  • Savings from your regular ongoing income (e.g. salary)
  • Equity in other property, or cash from the sale of a property

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.

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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.

  • To show proof of genuine savings, you need to provide bank statements, term deposit statements, shareholdings statements etc covering the last three months.
  • If any deposits on those statements came from other bank accounts, then you will need to also provide statements from the source bank accounts.

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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.