Saving up for your first home can be an exciting yet challenging journey. As a first-time homebuyer, you may have heard the term “Genuine Savings” thrown around by lenders. But what exactly does it mean, and how can you prove to the bank that your savings are genuine? Let’s dive into the world of Genuine Savings and learn how to secure that dream home.
Genuine Savings is more than just the money you’ve stashed away in your bank account. It represents your financial discipline and ability to save consistently over time. For lenders, it’s a crucial indicator that you can manage your finances and handle the loan repayments once you become a homeowner.
The Power of Genuine Savings
Having Genuine Savings demonstrates to lenders that you:
✅ Are a responsible budgeter
✅ Spend less than what you earn
✅ Regularly set aside money for savings
This responsible financial behavior assures banks that you are financially capable of owning a property and meeting the loan obligations without undue strain.

How do you prove your genuine savings to the bank?
So, how do you prove to the bank that your savings are genuine? Here are some key steps:
- Bank Statements – The most common way to demonstrate genuine savings is by providing the bank with your bank statements for the past three months. This shows that the required deposit amount has been sitting in your account consistently over that period.
- Accumulated Savings Approach – In some cases, you may not have the full required deposit amount at once. You can opt for the accumulated savings approach, where you deposit smaller amounts regularly until you reach the necessary total. This method assures the lender that your savings are genuine and not a one-time lump-sum deposit.
- Shares and Term Deposits – Yes, shares and term deposits can be considered genuine savings, as long as you have held them for at least three months.
- Gifts – If you receive a financial gift towards your deposit, it won’t be considered genuine savings unless you deposit it into your bank account and let it sit there for three months. After this period, the gifted amount transforms into genuine savings.
- Salary Sacrifice for Superannuation – The First Home Super Saver Scheme (FHSSS) allows you to use salary sacrifice contributions made to your Superannuation in the last 12 to 24 months for funding your home deposit.
Unlocking Your Homeownership Dreams
Proving your savings are genuine is a critical step towards securing your dream home. Whether you’re aiming for the full deposit amount or accumulating it over time, demonstrating financial discipline and responsible budgeting will strengthen your position as a first-home buyer. Don’t let the term “Genuine Savings” intimidate you; embrace it as the gateway to homeownership success.
Remember, consulting with an experienced mortgage broker can provide valuable insights and guidance on navigating Genuine Savings requirements and identifying suitable loan options. They can assist you in making the most of your financial situation and turning your dream of homeownership into a reality. So, start saving and set yourself on the path to homeownership with confidence!
Maria Papa is a senior property and finance expert specialising in home loans, investment loans, self-employed loans, alt doc loans, car loans, personal loans, and loan protection. She has offices in Sydney, Melbourne, and Manila. If you have questions, you can call Maria at 0430 144 008 or email her at mpapa@maverickfinance.com.au.
Disclaimer: Your full financial situation will need to be reviewed prior to acceptance of any offer or product.