March 05, 2014 by Tiffany Hancy
Genuine savings are funds you have saved and held in your savings account for a minimum of 3 months.
Genuine savings is usually required when borrowing over 80% of the value of the home. However, some banks will only require it when you borrow over 90%.
The amount required is 5% of the value of your home. For example: If you're buying a home for $500,000 then you will need 5% of $500,000 which is $25,000. Those funds are then to be held in your savings account for 3 months before you can apply for a home loan.
If you are renting prior to applying for a home and you can show a Property Managers statement showing "good conduct", some banks will consider this when looking at your 5% savings and may not need the funds to be held for a further 3 months.
For any further advice or queries, don't hesitate to give us a call at Mortgage Choice Joondalup & Clarkson on (08) 9485 0090.
Dennis Aplin, Your Home Loan Expert
dennis.aplin@mortgagechoice.com.au
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