What is genuine savings?
Genuine savings are funds a borrower has held in their own bank account for a minimum of 3 months, demonstrated to prove financial capacity and commitment when applying for a mortgage with a deposit below 20%.
When applying for a home loan in Perth with a deposit under 20%, most lenders require proof of genuine savings. This means you must show that money sitting in your bank account for at least three consecutive months before your mortgage application. The lender wants to see bank statements covering that period to verify the funds are genuinely yours and that you have the discipline to save.
Genuine savings matter because they signal to the lender that you can manage money responsibly. Low deposit loans carry higher risk for the lender, so they use this requirement to filter applicants who demonstrate real financial commitment rather than those borrowing money at the last minute. The three-month history shows a pattern of saving, not a one-off windfall.
Genuine savings differ from a gifted deposit. A gift from a family member may be allowed by some lenders, but it does not count as genuine savings because you did not accumulate it yourself. Gifted funds are treated differently in lending criteria, and some lenders apply stricter terms or may not accept them at all.
Perth mortgage brokers can advise you on which lenders accept genuine savings, what bank statements you need to provide, and whether your deposit history meets their requirements.