What counts as a genuine savings in a loan application?

What counts as a genuine savings in a loan application?

When assessing a loan application, the lender is most concerned with your ability to repay the loan. The best evidence of this is a regular demonstrable savings pattern that clearly shows a capacity to put money aside,


While each lender’s assessment criteria will differ slightly, you can generally expect that they will be looking for a clear savings pattern for somewhere between three and 12 months. For that reason, even though you may meet deposit criteria, lump sum injections into your savings account may be excluded as evidence of savings.

Such lump sums might include-:

  • Inheritance funds
  • Cash gifts
  • Lottery or other gambling winnings
  • Funds received from the sale of an asset not regarded as an investment.
  • Government grants and other similar incentives.

Genuine savings count as genuine savings when you can demonstrate that there is a clear pattern of saving.

So, is there any way to obtain a loan without being able to demonstrate that evidence?

There may well still be options available to assist you to obtain finance – these options would include such things as:

  • Evidence of consistent rental payment made on time for a period of over twelve months in many cases will allow the lender to make a case to waive at least some of the savings’ requirement. Regular timely rental payments are clear evidence that you are capable of making regular repayments.
  • Evidence of others significant assets such as shares, or property may be considered by some lenders as genuine savings.
  • Guarantor loans can be an option in some circumstances, although lenders are generally cautious about guarantors.

When assessing loan applications, lenders recognise that no two situations are the same and they appreciate all the facts being presented to them in a clear, concise and coherent fashion. The team at Australian Finance Hub have a thorough understanding of lender’s requirements and how to present your case in the best possible light. If you would like assistance with obtaining finance give the team a call at Australian Finance Hub and we will be happy to help.