If you apply for a home loan, particularly if the loan is for more than 80 per cent of a property’s value, you’ll more than likely have to prove to lenders that you have a satisfactory amount of savings. This is to demonstrate your ability to funnel a portion of your income into repayments.
Although it can differ, in most cases lenders generally look for consistent additions to savings over a period of at least three months. This means that the following are not considered genuine savings:
Some banks will accept the above as genuine savings if these funds have been sitting in your account for 3 months.
Can I still get a loan without genuine savings?
For those who don’t have any genuine savings but still want to obtain finance, there are options. These include:
“I regularly write loans for customers who do not have genuine savings using the aforementioned policy exceptions,” says Kerry at KLM finance. “It’s just a matter of looking at their full situation and knowing which lender is going to have the policies to suit what you’re trying to achieve. This knowledge can only be achieved through experience and keeping in constant communication with lenders to know what their policy niches are.”
MFAA accredited finance brokers like Kerry are trained to have knowledge of a broad spread of products from multiple lenders, so she’ll be able to match you with the right lender and loan.