Lenders like to see a borrowers’ history of savings – normally the minimum is 3% for first home buyers or 5% for others of property value and they like to see this saved over a minimum of 3 months.

Funds to be held in the borrowers name and include:

  • Funds held or accumulated in savings accounts for 3 months or more
  • Term deposits held for 3 months or more
  • Shares held for no less than the last 3 months

Exclusions from genuine savings:

  1. Advances on wages/commission from an employer
  2. Inheritance
  3. Financing of a deposit
  4. Builder discount/finance
  5. Vendor discount/finance
  6. Proceeds from sale of motor vehicles
  7. Windfall gains
  8. One-off government payments (e.g. baby bonus, stimulus package payments)

If genuine savings cannot be demonstrated as per the above, the LVR must be less than 90% + lenders mortgage insurance.