Not every dollar in your deposit is treated equally by a lender — 'genuine savings' is a specific concept worth understanding before you assume your deposit will simply be accepted at face value.
What typically counts as genuine savings
Most lenders define genuine savings as funds held or accumulated over a period, usually three months or more — savings account balances, term deposits, or shares held for that period generally qualify.
What often doesn't count
A lump sum that appears in your account shortly before applying — a gift, an inheritance, or funds from selling an asset — may not count as genuine savings, even though it's real money you can use, depending on the lender's specific policy.
Why it matters more at higher LVRs
Genuine savings requirements are usually most relevant when borrowing above 90% LVR, where lenders want evidence you can maintain a savings pattern, not just that you have access to funds today. Below certain LVR thresholds, some lenders relax this requirement.
Chris Brown
Managing Director & Finance Broker at New Vision Financial Services, a credit representative under Australian Credit Licence 384704 and a member of the FBAA and AFCA. More about Chris →
Frequently asked
Does a gifted deposit count as genuine savings?
Usually not on its own, though many lenders still accept gifted deposits as part of your funds — it's simply treated differently to genuine savings for policy purposes. See our related article on gifted deposits for more detail.
How long do I need to hold savings for them to count?
Most lenders look for a pattern over at least three months, though this varies. Starting to save consistently well before you plan to apply is the simplest way to avoid this becoming an issue.
Does genuine savings policy apply to every loan?
It's most commonly applied at higher LVRs (typically above 90%). Below that, and particularly with a larger deposit, many lenders don't apply the same requirement.