What are genuine savings?

See all Home loans FAQs

Last updated 04 February 2014


Savings (or equity) is the amount of money borrowers need to contribute to complete the purchase of a property. Genuine savings are required when the Loan to Value Ratio (LVR) is greater than 85% of the security value. This means customers must show evidence of regular savings over a defined period of at least 3 months.

What types of genuine savings are there?
The types of genuine savings we accept can be a mixture of the following:

  • A savings pattern (established over a period of 3 months)
  • Term Deposit (held for at least 3 months)
  • Shares (held for at least 3 months)
  • Gift (held in the applicants account for at least 3 months)
  • Cash (acceptable if held in an account for at least 3 months)
  • Equity in an existing property
  • Inheritance (held in the applicants account for at least 3 months)

What amount of genuine savings do I need?
If you intend on purchasing or building an owner occupied property you will need to contribute 5% of the security value in the form of genuine savings. If you intend on purchasing or building an investment property you will need to contribute 10% of the security value in the form of genuine savings.

What if I do not have genuine savings?
We understand that customers are not always able to demonstrate genuine savings. In some cases we will consider other forms of savings, in these instances we recommend you speak with your lender.

What is excluded from genuine savings?
The following types of savings (or equity) are not an acceptable form of genuine savings:

  • First Home Owners Grants
  • Borrowed funds (for example a personal loan)
  • The sale of an asset other than a property (for example the sale of a motor vehicle)

How can I find out if I meet the genuine savings criteria?
To find out if you meet the genuine savings criteria please call us on 13 2224 from 8am to 8pm, 365 days or visit any Commonwealth Bank Branch.

Unable to find what you're looking for?

Search for more popular topics