Australian lenders now have genuine savings policies for all loan applications.

Whilst the Lending Policy varies with lenders, they share the same basic criteria:

5% of the purchase price is required to be genuine savings for all loans used to purchase a property where the loan amount is higher then 80% of the purchase price.

Keystart policy is that 3% of the purchase price is required to be genuine savings for all loans used to purchase a property where the loan amount is higher than 80% of the purchase price.

Acceptable genuine savings is defined as:

Savings held or accumulated in the applicants name for over 3 months

Term deposits held for over 3 months

Shares or managed funds held for over 3 months

Equity in real estate

A few lenders have loans that do not require genuine savings. In these cases, you will still need a 5% deposit, however it can come from other sources e.g. parent gift, tax return, lump sum payment from employer, inheritance.

Family equity products
Lender's mortgage insurance
First home owners' grants