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Genuine Savings

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?

  • It must be in one of the borrowers' names.
  • They must be liquid, which means they must be kept in a bank savings account or similar, or they must be investments that can be sold and converted to cash rapidly, such as publicly traded shares.
  • The history of genuine savings must be verifiable by providing a 3-month bank statement.
  • Not from a family or friend's present, a windfall gain, an inheritance, or the profits of the sale of a non-investment asset.

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.

Loans by Reliiance Financial Solutions

We all have different needs and requirements. Let our knowledge and experience help you get the most suitable financial solution for you. At Reliiance Financial Solutions, we work with you, for you.

Talk to a Reliiance Financial Solutions expert for a consultation


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.

Want a quick and entertaining snapshot of our services? Click on Services Videos and enjoy!


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