Genuine Savings

Genuine Savings

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Most lenders require that you establish that you have genuine savings if you are borrowing more than 80% of the value of a house, or 85% or more in some cases.

In general, you must show that you have at least 5% of the expected purchase price saved. Genuine savings allow the lender to authenticate the borrower’s reputation. Borrowers who commit to saving are significantly more likely to succeed than those who do not.

What determines genuine savings?

To participate in or bid at an auction, prospective buyers must first register with the vendor’s agent and be assigned a bidder number. The auctioneer is in charge of the bidding process. They accept bids from prospective buyers and monitor the current offer price.

Before an auction, the seller will set a reserve price, which is normally not published. If bidding exceeds the reserve price, the property is sold upon the drop of the hammer. If your bid is successful, you must sign the contract of sale and pay the deposit right away (usually around 10 percent of the purchase price).

If you bid at an auction, you must be prepared to exchange contracts and execute the transaction. Otherwise, you will forfeit your deposit and may be held accountable for the vendor’s damages.

What if a borrower lacks genuine savings?

Most lenders do not demand genuine savings if you are borrowing 80% or less, while a few lenders do not verify savings for 85, 90, and occasionally 95% home loans.

The higher the loan-to-value ratio (up to 95%), the more likely you will have to pay a higher interest rate, and the stronger your application must be in other areas such as income and employment history.

Did you know that by merely waiting three months, you can convert any deposit into genuine savings?

Simple steps can be taken to convert your contribution into genuine savings, such as depositing the money into a savings account, adding to it each month for three months, and then declaring the money to be genuine savings.


Got questions? Find answers to some of the most commonly asked questions about our financial solutions, processes, and services to help you make informed decisions.

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Discover how we’ve helped our clients navigate their financial journeys with personalized solutions. Read their stories of success and empowerment below.


At Reliiance Financial Solutions, we have been privileged to have worked with hundreds of remarkable individuals and families.

Very few things come close to receiving their genuine appreciation of our services. All we can say in return is – the pleasure was all ours.

It is also our pleasure to share some client testimonials with you. Please click on Video Testimonials to view them all. Use the buttons at the bottom of the screen to navigate through the videos.

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