What counts as genuine savings in a loan application? Posted on April 27, 2017July 27, 2017 by admin 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 and preferably a year or more. This means that the following are not considered genuine savings: ● a cash gift ● an inheritance ● casino/other gambling winnings ● proceeds of the sale of a non-investment asset ● government grants and other finance offered as incentives Lenders will ask for a bank statement over the most recent 3-6 month period to show your savings history. If the statement shows lump sum deposits they may also ask for documents to verify the source of those lump sums. Posted in Advice, First Home Buyers.