Australian Genuine Savings Calculator
Calculate whether your savings meet the genuine savings requirement for Australian home loans. Most lenders require at least 5% of the property price to come from genuine savings (held 3+ months) for loans above 80% LVR. Find your shortfall and strategies to meet the requirement. All figures in AUD.
"Genuine savings" means funds that have been accumulated gradually over time in your name — demonstrating a pattern of saving from income. Lenders want to see a savings history, not just a lump sum appearing in an account.
| Source | Qualifies? | Requirement | Notes |
|---|---|---|---|
| Regular salary credits to savings account | Yes | Held 3+ months | Most common qualifying source |
| Term deposits in your name | Yes | Held 3+ months | Must be in your name throughout |
| Shares / managed funds | Yes | Held 3+ months | Value at time of application |
| Equity from sale of property | Yes | Held 6+ months | Property must have been sold, not just listed |
| Equity from sale of other assets (car, business) | Yes (most lenders) | Held 6+ months, documented | Lender-specific — get written policy confirmation |
The fastest and most reliable path to meeting the genuine savings requirement is a dedicated, separate savings account with consistent, regular transfers from salary — never withdrawn. This creates an indisputable paper trail for lenders.
- Open a dedicated "Home Deposit" savings account
- Set up automatic salary credits directly to this account
- Do NOT withdraw from this account — any withdrawals reset lender confidence
- Maintain for at least 3 months before applying (6 months is better)
- Keep 3 months of statements showing regular credits and no debits
- Avoid commingling with everyday spending accounts
How to Use This Calculator
Enter your target property price, current savings amount, how long those savings have been accumulating, and the source of funds. The calculator determines whether your savings meet the genuine savings requirement, shows the shortfall if any, and calculates how many months you need to build qualifying genuine savings.
What Are Genuine Savings?
Genuine savings is an Australian lending concept requiring borrowers to demonstrate that a portion of their deposit has been saved gradually over time from regular income — not received as a lump sum. For loans above 80% LVR, most lenders require at least 5% of the property price to come from genuine savings. This demonstrates a pattern of financial discipline and the ability to service a mortgage.
Why Do Lenders Require Genuine Savings?
Statistics show that borrowers who saved their own deposit are significantly less likely to default than those who received gifted deposits. A savings track record is evidence of financial discipline and surplus cash flow — the same qualities needed to make regular mortgage repayments over decades.
Genuine Savings Formula
(applies to loans above 80% LVR)
Qualifying Sources (held 3+ months):
- Regular salary credits to savings account
- Term deposits in your name
- Shares / managed funds (3+ months)
- Equity from sold property (6+ months)
Non-Qualifying Sources:
- Gifts from family
- Tax refunds
- Inheritance (under 3 months)
- Government grants
Example: $700,000 property
Genuine Savings Required: $35,000 (5%)
20% deposit target: $140,000
If genuine savings = $40,000: Requirement met
Remaining $100,000 can be from any source (gift, inheritance, etc.)
Example: Gift + Genuine Savings Strategy
Emma — $650,000 Property in Melbourne, $80,000 Available
| Property Price | $650,000 |
| 5% Genuine Savings Required | $32,500 |
| Emma's Bank Savings (saved over 8 months) | $35,000 (qualifies) |
| Parent Gift | $45,000 (does not count as genuine) |
| Total Deposit Available | $80,000 (12.3%) |
| Genuine Savings Requirement | Met ($35K of $32.5K needed) |
| LVR | 87.7% — LMI required |
| LMI Premium (est.) | ~$12,000 |
Emma meets the genuine savings requirement with her $35,000 in savings held for 8 months. The $45,000 parent gift supplements the deposit but does not help with the genuine savings threshold. Emma uses the First Home Guarantee scheme to avoid LMI on her 12.3% deposit, saving her approximately $12,000.