How To Obtain Home Loans With Non-Genuine Savings?How To Obtain Home Loans With Non-Genuine Savings?

The majority of lenders/credit providers require you to prove that you have saved a 5% deposit before they will approve your home loan application. If, however, like many other Australians, you find yourself in a position where you have the money for a deposit, but you have not saved the money yourself and you still want a home loan. Then consider a non-genuine savings home loan.

What are Non-Genuine Savings?

If your deposit money is coming from any of the following sources, the lenders/credit providers will classify your deposit money as being non-genuine savings:

>> A Non-Refundable Gift from your Parents
>> An Inheritance from a Grandparent
>> A Large Tax Refund
>> Proceeds from the Sale of an Asset (e.g. car, motorcycle or boat)
>> Some Form of Windfall
>> Advances on Wages/Commissions from your Employer
>> First Home Owners Grant (FHOG)
>> Compensation Payouts
>> Borrowed Deposit
>> Builder/Developer Incentives

The situations listed above are very complicated. There are some lenders/credit providers who will accept these deposit sources as genuine savings. If you are currently renting your property, your rental history will be considered in few circumstances.

Are Non-Genuine Savings Loans more expensive?

No, there is no difference in loan and LMI pricing with any lender/credit provider if you are borrowing 85% of the property value or less.

If you are borrowing up to 90% of the purchase price than the majority of lenders/credit providers will have the same rates and fees for non-genuine savings home loans as they do for people that have saved a deposit. For loans up to 95% of the purchase price, some lenders/credit providers will charge a slightly higher Lenders Mortgage Insurance (LMI) premium if you cannot prove genuine savings.

Can I get a Home Loan without Genuine Savings?

Recently, some lenders have begun to offer 95% home loans without any proof of savings. The home loan is only available to people who are in a strong financial position. To qualify for this home loan, you must meet the following minimum requirements:

>> You must be paying your rent on time (if you are renting)

>> You must have stable employment

>> If you are self-employed, you will probably need to demonstrate your financial status over the past 2 years as a minimum

>> You must have a clean credit history (you must be free of any defaults or adverse listings and must not have too many credit enquiries)

>> You must have an excellent credit score

>> You must not have too many consumer debts such as credit cards and personal loans

>> You must be able to afford the debt comfortably.

So, don’t worry if you cannot manage to show proof of genuine savings. You can obtain non-genuine savings home loans easily by fulfilling the above mentioned requirements.

by Frank Zelasko
References and Bibliography
Singh Finance is the perfect financing partner for every Australian home buyer. The firm will help you obtain home loans without genuine savings. Its team of expert mortgage brokers will even help in obtaining quick approval vacant land loans with low documents.
Rated:NR/0 Votes
Add To My Article Reading List
Add To My Article Reading List
Print Article
More Article By Frank Zelasko
More Article by Frank Zelasko
More Articles From Real Estate
More Articles From Real Estate
Related Articles and Readings
Do You Qualify For The FHA Home Loan By: Martin Lukac
The FHA Home Loan is a home loan program established by the federal government in order to assist more families in being able to achieve the American dream of owning your own home. The FHA home loan is specifically designed for the first time home buyer but can also be ...
Home Mortgage Loans after Bankruptcy Financing a Home after Bankruptcy By: Carrie Reeder
Financing a home after a bankruptcy doesn't have to be an ordeal. When you find the right lender, you can secure reasonable rates on your mortgage loan. You can improve your loan application with time and some cash leverage. Depending on your financial situation, it is possible ...
How A Loan Officer Can Make or Break the Acceptance of Your Mortgage Application By: John R Blakefield
Loan officers are very popular and strong in numbers when looking at the mortgage industry. These loan officers often work for commercial banks, credit unions, savings institutions, and related financial institutions. Although the loan officer's job is very important, the necessity for their job is declining due to the increasing ...
Home Improvement Loan Neighbors Envy and Owners Pride By: Natasha Anderson
Each one of us wishes to make our home look the best. Even small improvements in the home can make big changes. People undertake different home improvement projects be it for making it a better place to live or as a mere status symbol. You may have great home improvement ...
Advantages And Disadvantages Of Online Loan Application By: Willie Rhoades
Getting a loan from the bank or other institutions can take a while before you get an approval If you are in need of fast cash, then you may take into consideration getting an online loan ...
The information provided in this article and/or the comments is the sole responsibility of their respective authors and does not necessarily reflect the opinion of  does not endorse any article and/or comments published by our web users unless otherwise noted. 

Member Panel

login to submit articles and more


  • » Active Categories: 419
  • » Active Articles:252609
  • » Active Authors:31915
  • » Active Members: 38222
  • » Statistics Updated:
    - Thu May 7th, 2020 12:50AM EST