Genuine savings: Assuring Your Lender to Paying Your Home Loan

"A penny saved is a penny earned." –Benjamin Franklin

This kind of saving is not an ordinary money saving. A genuine saving is policy that has been re-introduced by lenders so that you can prove a minimum of five percent savings for over three months in order to qualify for a home loan.

For those who don’t get it that much, here is a brief, precise and basic information of what genuine savings is.

Genuine Savings Explained

So if you think you can buy your home by just slamming a slab of money to your lender, you better think again. Nowadays, not all cash deposits are acceptable for your home application when you deposit below 20% of the purchased price.

Conversely, if you cannot prove that you can save a deposit, you should then consider applying for a no savings home loan which is available up to 95% of the property’s value. And yes, you will still need a deposit and it can come from just about any source.

Now, you question why lenders are being so strict with this policy. The lenders have tightened their belts when it comes to this since the Global Financial Crises which results to the eliminated the full availability of home loans but will be available with a guarantor.

There are other assets that might be considered as genuine savings. Some of this is term deposits, shares, and equity of the property that are held for three months. Moreover, gifts from parents, tax refunds, income bonuses, saved cash and a lot more never qualifies for a genuine saving.

Related searches

• 95% No Genuine Savings Home Loan: Can I Get a Mortgage With No Deposit of My Own?
• No Deposit Home Loans - Information You Need To Know
• First Home Buyer
• Australian Army Home Loan - Can I Get a Home Loan With No Savings Using HPAS and FHOG As My Deposit?
• The Keys to Saving Money on Your Electric Bills