What is genuine savings?
Genuine savings are funds a borrower has accumulated and held in their own account over a period of time, rather than receiving as a gift or inheritance, to demonstrate financial capacity and discipline to a lender.
Lenders use the term "genuine savings" to describe money you have built up yourself and kept in your own bank account for a set period, typically 3 to 6 months. This distinguishes savings you have earned from deposits that arrive suddenly as gifts, inheritances, or loans from family members.
Why it matters: Genuine savings act as proof that you can manage money responsibly and stick to a savings plan. When you apply for a mortgage on the Gold Coast, lenders examine your deposit source carefully. They want confidence that you have the discipline to make ongoing repayments, not just the ability to pull together cash at the last moment. A pattern of consistent deposits into an account shows financial habit and reduces lending risk.
Lenders typically ask to see bank statements spanning several months before your application. They look for regular, steady contributions you have made from your own income or savings, rather than lump sums that arrived unexpectedly. Some lenders are stricter than others about what they accept as genuine, so the exact definition can vary between institutions.
If you received financial help toward your deposit, most lenders will still work with you, but they may classify part of your deposit as a gift rather than genuine savings. This can affect your loan options and rates. First-home-buyer mortgage brokers on the Gold Coast can help you understand which of your funds meet genuine savings criteria and which lenders will best suit your situation.