Genuine savings: does your deposit qualify?

If you've got a deposit but the bank says you need genuine savings, you may not have to put your plans on hold. Some lenders want to see money saved or held over time. Others may accept a different deposit source or use your rental history to help you qualify.

I'd start with where your money came from and when you want to buy. A family gift, inheritance or money from selling your car can give us options to work with. The next step is finding a lender that accepts your circumstances, rather than assuming you need to wait another 3 months.

Genuine savings usually means money you have built up or held over time, often for at least 3 months. Where the lender requires it, a common minimum is 5% of the purchase price. Those are starting points, not rules that apply to every loan.

For a $700,000 purchase, 5% is $35,000. That does not mean $35,000 will cover everything. You may need a larger deposit for the loan you choose, plus legal fees, inspections, government charges and any Lenders Mortgage Insurance (LMI). Keep a cash buffer as well.

The requirement can change with how much you borrow relative to the property's value, known as the loan-to-value ratio or LVR. It can also depend on the product and whether you use a government scheme. Having a 10% or 15% deposit does not automatically remove the need to show where the money came from.

LMI may apply with less than a 20% deposit, but eligible government-scheme borrowers and some other borrowers can avoid it. LMI and genuine savings are separate checks. Our low deposit home loan guide explains the main pathways.

A gift might help you pay for the home while the lender still wants to see a savings history. Before you move money or wait another few months, check what evidence will help with your particular deposit.

These are deposit sources to assess. The lender still needs to accept the source and the evidence.

If you've moved savings between your own accounts, keep statements for both. We need to show where the money came from and follow it into the account you're using for the purchase. For a large recent deposit, the explanation and supporting records matter more than guessing whether it is too big to count.

If your parents are helping, be clear about whether they expect repayment. A gift letter needs to describe the actual arrangement. Our guarantor home loan guide explains a different form of family help, including the risk to the guarantor's property.

If you've been paying rent on time, I'd check whether that history can help before asking you to wait and build up a separate savings record. Some lenders will consider it, although the required period and documents vary. You do not always need 6 months of rental history.

❌ Rent you have already paid is not cash you can use at settlement. You still need an acceptable source of money for the deposit and buying costs. This is why a good rental record and a family gift can be useful together, where the lender accepts that combination.

For example, someone buying for $700,000 might have a $35,000 non-repayable gift and a record of paying rent on time. That gives us a reason to investigate lenders that accept those circumstances. It does not establish approval: we still need to check the required rental period, the gift evidence, buying costs and affordability.

Start with your lease, rental ledger and bank statements showing payments. Check that the names and payment dates line up. Private rentals, payments to family, shared leases and late payments need a closer look because lenders treat them differently. Pay rent by the due date in your lease; there is no universal home loan rule that you must pay a week early.

If rent could help with your application, our Westpac home loan review is one place to start. We can check whether that option or another lender suits your deposit, income and the property you want to buy.

The same deposit can lead to different answers from different lenders. Here are a few examples of what I would check before telling you to wait. You can follow the lender names to our reviews for more on their loans and fees.

If your deposit doesn't fit one lender, there may be another option. I'd compare the full cost of that loan before suggesting a switch, because getting past the savings requirement is only part of choosing a home loan.

We also need to check what you can comfortably repay. Saving $1,000 a month is a useful starting point, but the lender will look at your income, debts and living costs as well. A bigger deposit may help you qualify for a better rate; a regular savings habit alone doesn't guarantee a discount.

Eligible first home buyers can use the Australian Government 5% Deposit Scheme with a minimum 5% deposit and no LMI. Eligible single parents or legal guardians may qualify with 2%. Property caps and lender assessment still apply.

You still need to show how you've put your deposit together. If part of it is a gift or you want to use your rental history, I'd check that with the lender before you start making offers. Avoiding LMI does not automatically remove the savings requirement.

Our 5% Deposit Scheme guide explains who can use it. For the home loan options, see our NAB and People First Bank reviews. Check the Queensland first home owner grant separately, because grant eligibility and loan approval are different questions.

The First Home Super Saver Scheme can help eligible buyers use voluntary super contributions towards a first home. Up to $15,000 of eligible contributions from a financial year and $50,000 overall can count towards the release calculation. The amount you can receive depends on the type of contribution, associated earnings and tax treatment.

Compulsory employer contributions do not qualify for FHSS. You also cannot assume a super balance is immediately available as a deposit. Check the ATO determination and release process early, and confirm how the lender will treat the money. Our FHSS guide explains the steps.

You do not need to guess which rule will apply. Start with the deposit you have, when you received it and when you hope to buy. That lets us check the realistic options before you move money or make an offer.

If the evidence does not meet the lender's rules, the answer may be a different lender, more time or a lower purchase budget. I would rather establish that before you sign than have you discover it during the finance period. A pre-approval can help with planning, but you still need to satisfy its conditions.