Many home buyers entering the property market can raise the required deposit. However, raising that money in one’s own account can be troubling for some buyers.
With this in mind, lenders have created a non genuine savings product. Simply put, as long as a borrower can show they have the deposit (which could have come from a variety of sources) then the lender will lend him the remaining amount of the funds required to complete the purchase.
The non genuine product is only available from a few lenders and is very popular with first home buyers. If you are a first home buyer, come to our info sessions and get pampered with lots of assistance to help you on your journey to purchasing your golden patch in Australia.
If a client cannot verify their savings pattern over a 3 month period or more, yet they have savings, a lender could assess this under a non genuine savings policy. Although this policy is not widely known as being available, it can be found with a few lenders and is popular.
A typical non genuine savings client is someone who has the deposit for a home (generally 5-10% or more), but does not have that money in a bank account for 3 consecutive months or more. This person also does not have equity in a property, shares, or managed funds. This client is also the type who could go and deposit the money into their bank account a day before applying for a loan as they could have the money in cash at home or recently sold an asset like a car which is the most common example.
In addition, a typical non genuine savings applicant is someone who raised or received their deposit by way of a gift or inheritance from a family member. This is especially such, with parents taking on the responsibility of taking their children’s savings and parking this money under their own name/s to guarantee the savings of their children. Yet, when the person is ready to enter the property market for the first time, their entire savings is held in the name of the parents.
Not every bank accepts non genuine savings, especially for first home buyers. We are very experienced with this type of lending and we will be able to guide and help you on your way to getting this set up correctly. For more information come to our info sessions for first home buyers.
Specialist mortgage broker Sue will guide you to find a solution to purchase a property Excited? You should be Come and find out how Sue helped others who never thought they would own a property
