What is genuine savings?
Genuine savings are funds accumulated and held over a set period that lenders verify as evidence of regular saving discipline and financial commitment before granting a mortgage.
Lenders in Sydney often require genuine savings before approving a mortgage loan. This means money you have saved and held in a bank account, typically over three to six months, that demonstrates you can manage money responsibly and commit to loan repayments. The funds must show a clear pattern of regular deposits, not a single lump sum received shortly before your application.
Why genuine savings matter depends on your borrowing situation. If you are putting down a smaller deposit (less than 20 percent of the property price), lenders use genuine savings as proof that you have the discipline and financial habits needed to repay a larger loan. Some lenders also consider genuine savings when you have limited credit history, recent employment changes, or other factors that make your application less straightforward.
Mortgage brokers in Sydney regularly guide borrowers on how to build and document genuine savings for their applications. The amount required varies by lender and your circumstances. Most lenders accept savings held in transaction or savings accounts with clear bank statements showing the deposit history. If you are a first-home buyer, genuine savings can strengthen your application and sometimes help you access better rates or lower deposit requirements.