Genuine Savings Home Loan: What Counts and Your Options If Yours Doesn’t

By Andrew Paterson

General information only, not financial, credit or tax advice. It doesn’t consider your objectives, situation or needs, and lender policies change often.

A bank or broker has told you that you need “genuine savings” for your home loan. Your deposit is actually a parental gift, a car sale or an inheritance. This guide is for you.

The term trips up a lot of first home buyers because it sounds like any money you’ve saved. In practice it means something narrower, and each lender defines it a little differently.

What Are Genuine Savings?

Genuine savings are funds you’ve built up or held over time in your own name. They show a lender you can put money aside regularly, which is a fair guide to how you’ll handle repayments.

No law defines the term. Each lender writes its own genuine savings policy, so the details shift from one lender to the next.

A common approach across many lenders looks like this:

• Around 5% of the purchase price shown as genuine savings.
• Held or built up in your account over roughly 3 months, with some lenders asking for longer.
• Usually applied when you borrow more than 90% of the property value, and by some lenders from 85%.

On an $800,000 purchase, 5% is $40,000. If you’re still building that balance, our guide on saving a house deposit faster covers the practical side.

Funds that lenders commonly accept include:

• Money saved in a savings or transaction account over several months.
• Regular deposits that show a savings pattern.
• Term deposits and shares you’ve held for a while.
• Equity in a property you already own.
• Money released under the First Home Super Saver scheme, with some lenders.

What Often Doesn’t Count (And Why)

Many lenders don’t treat these as genuine savings, at least not straight away:

• Gifts from parents or other family.
• Inheritance.
• Proceeds from selling a car or other asset.
• First Home Owner Grant funds.
• Tax refunds, bonuses and other one-off lump sums.

The reasoning is simple. A lump sum landing in your account doesn’t show a savings habit, even if it still helps you reach the deposit.

Policy is less rigid than that list suggests. Helia, one of the main mortgage insurers, lists gifts from immediate family, inheritance, asset sales, tax refunds and the First Home Owner Grant among acceptable deposit sources for high-LVR loans. Its guidelines don’t set a 3-month holding rule, though individual lenders often add one.

How Seasoning Turns a Gift Into Genuine Savings

Many lenders will count a gift, inheritance or sale proceeds as genuine savings once it has sat in your own account for about 3 months. Brokers call this “seasoning”.

Here’s how that can play out:

1. Day 0: Your parents gift you $45,000 and you put it into a savings account in your name.
2. Months 1 to 3: The money stays put. Adding a little from each pay helps show a savings pattern.
3. After about 3 months: Many lenders will now treat that balance as genuine savings.

A gift rarely sinks an application, though it may mean waiting a few months before you apply. If family money is involved, it’s also worth reading about putting a written agreement around a family gift.

Watch out for large deposits you can’t explain. Lenders will ask where the money came from, so talk to a broker before moving a big sum into your account just before you apply.

Rent History Instead of Genuine Savings

Some lenders accept a clean rental history in place of a savings pattern. This can suit people who have paid rent reliably but haven’t built much of a cash buffer.

The conditions are worth knowing:

• Most want a rental ledger from a licensed real estate agent or property manager. Private arrangements with family are often not accepted.
• Required history varies, typically somewhere between 3 and 12 months of on-time payments.
• Rent history replaces the savings pattern only. You still need the deposit itself, often at least 5%.

The Real Trade-Off: Fewer Lenders and LMI

You may have read that lacking genuine savings means a higher interest rate. In our experience that is uncommon, since the bigger effect is on which lenders will consider you.

A deposit that doesn’t meet a lender’s genuine savings policy narrows your options. A high-LVR loan also usually carries Lenders Mortgage Insurance, and it’s worth understanding how LMI is calculated and charged before you compare offers.

LMI premiums vary by lender and insurer, and they climb steeply as your LVR rises. As a rough guide on a $600,000 loan in Victoria, expect around $11,000 to $16,000 at 90% LVR and $22,000 to $28,000 at 95%.

Those estimates include the 10% stamp duty Victoria charges on the premium. Treat them as indicative and get a quote for your own scenario.

Is My Deposit Genuine Savings? A Quick Check

Start with where your deposit came from:

• Your own savings, built up over several months: Likely to meet most lenders’ policies.
• Gift, inheritance or asset sale: May qualify after a few months in your account, or with a lender that accepts these sources as they are.
• Reliable renter with modest savings: A lender that accepts rental history may suit.
• Fully gifted deposit and no time to wait: Options can include a lender that accepts gifted deposits, a family guarantee or the 5% Deposit Scheme.
• A mix of sources: This is common, and the right lender can often work with the combination.

How the Main Pathways Compare

Each pathway has its own requirements, and these vary between lenders.

Pathway	Genuine savings	Things to check
Lenders with a standard policy	Often around 5% above 90% LVR	How long funds must be held
Lenders that accept rent history	Rent can replace the savings pattern	Agent ledger, often 3-12 months
Lenders that accept gifted deposits	May not be required	Gift letter, LVR limits, pricing
5% Deposit Scheme	Set by the participating lender	5% deposit, no LMI, price caps

The same deposit can be accepted by one lender and declined by another. Check current policy before you apply.

Where the 5% Deposit Scheme Fits

The Australian Government 5% Deposit Scheme, previously the First Home Guarantee, lets eligible buyers purchase with a 5% deposit and no LMI. The government guarantees part of the loan to a participating lender.

Since 1 October 2025 the scheme has no income caps and no limit on places, a change covered in our piece on the income cap change. It has helped more than 320,000 people since 2020.

The scheme doesn’t set its own genuine savings rule. It asks you to use as much of your savings as possible, and you still need to meet the participating lender’s credit policy.

Property price caps apply and vary by state. In Victoria the cap is $950,000 in Melbourne and Geelong, the state’s only listed regional centre, and $650,000 elsewhere.

Two other supports can help build or top up a deposit:

• First Home Super Saver: You can release up to $15,000 of voluntary super contributions per year, up to $50,000 in total. You need an ATO determination before settlement, so start early because the release can take several weeks.
• First Home Owner Grant: In Victoria this is $10,000 for new homes valued up to $750,000, and other states run their own versions.

The federal Help to Buy shared equity scheme opened on 5 December 2025, but you can’t combine it with the 5% Deposit Scheme. The Victorian Homebuyer Fund closed to new participants on 10 September 2025.

Where a Broker Can Help

With genuine savings, lender choice matters a great deal. It fits into the wider preparation covered in our 6-month loan-ready countdown, since seasoning a deposit takes some lead time.

We match your deposit story to a lender whose policy fits. That might mean:

• Timing a seasoning window so a gift can count.
• Finding a lender that accepts rental history.
• Looking at gifted-deposit or family guarantee options when waiting isn’t practical.
• Arranging the 5% Deposit Scheme through a participating lender, since you can’t apply to the government directly.

A deposit that doesn’t look like textbook genuine savings is rarely the end of the road. Have a chat with us and we’ll work through your options.

Frequently asked questions

Does a gift from my parents count as genuine savings?

It depends on the lender. Some accept a gift from immediate family as it is, usually with a signed gift letter. Others want it held in your account for around 3 months before they count it.

How long do I need to hold my deposit for it to count?

Around 3 months is common, though some lenders ask for longer and some mortgage insurers set no holding period. A broker can match you with a lender whose timing suits you.

Can my rent history replace genuine savings?

With some lenders, yes, usually with a ledger from a licensed agent. You’ll still need a deposit, so rent history helps with the savings test and leaves the deposit amount unchanged.

Will I pay a higher interest rate without genuine savings?

Not usually. The larger effect is a smaller choice of lenders, and any loan above 80% LVR generally attracts LMI unless you use a scheme or waiver.

Does the First Home Owner Grant count towards my deposit?

Some lenders and insurers accept the grant as part of your deposit, while others exclude it from genuine savings. In Victoria, if you need the grant at settlement, you apply through your lender.

Can the 5% Deposit Scheme help if my savings don’t qualify?

It can reduce the deposit you need and removes LMI. You still need to meet the participating lender’s own policy on savings, and the property must be under the price cap for its area.