Confused about genuine vs non-genuine savings? Learn what WA lenders actually accept, what counts toward your deposit, and how to turn your savings into loan approval success.

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Snapshot: Why It Matters in WA

If you’re saving for your first home in Western Australia, you’ve probably heard the term “genuine savings.” But what does it really mean — and why do some lenders reject deposits that look perfectly fine on paper?

For WA borrowers like Emily Carter from Joondalup, understanding the difference between genuine and non-genuine savings can be the deciding factor between a smooth approval and a frustrating “not quite yet.”

Let’s break down how lenders in WA assess your savings, what counts, what doesn’t, and what you can do if your funds don’t meet the “genuine” label — yet.

What Are Genuine Savings?

Genuine savings are funds that you’ve personally saved and held over time — demonstrating your ability to budget and manage money consistently.

Lenders view genuine savings as proof that you’re financially disciplined enough to handle a mortgage. Most major banks and lenders in WA expect to see at least 5% of the property purchase price as genuine savings, held for a minimum of three months.

Examples of Genuine Savings:

• Regular deposits into a savings account over 3+ months

• Term deposits held for several months

• Shares or managed funds held for at least 3 months

• Extra repayments into an existing home loan that can be withdrawn

• Rent payments (in some cases – more below)

WA Context:

Some local lenders — especially non-bank or regional institutions — are slightly more flexible. For example:

• Major banks (e.g., CBA, NAB, ANZ) generally require 5% genuine savings verified by statements.

• Alternative lenders and Keystart WA may consider long-term rental history or consistent rent payments as evidence of saving behaviour.

The goal is to show a track record of financial stability, not just a lump sum.

What Are Non-Genuine Savings?

Non-genuine savings are funds that haven’t been built up over time — even if they’re legitimately yours.

While these still contribute to your deposit, most lenders don’t view them as evidence of saving discipline.

Common Examples of Non-Genuine Savings:

• Gifts from parents or relatives

• Tax refunds or bonuses

• Inheritance or windfalls

• Proceeds from selling assets (car, crypto, etc.)

• First Home Owner Grant (FHOG) or state-based incentives

• Personal loans or borrowed funds

These sources aren’t “bad” — but lenders may require additional proof that you can manage repayments responsibly.

Why Lenders Care About the Difference

From a lender’s perspective, genuine savings reduce risk. They demonstrate:

• Consistency — you can manage regular deposits

• Commitment — you’ve worked for the deposit

• Stability — you’re not reliant on one-off windfalls

WA lenders use this distinction to gauge financial habits, not just financial capacity. Even if your total deposit is large, it may raise questions if none of it shows saving discipline.

Example:
Emily and her partner receive a $20,000 gift from family and add $5,000 from tax returns. Their lender asks for three months of transaction history to confirm that some portion of their funds came from genuine, consistent saving.

How WA Lenders Assess Savings

Most WA lenders apply the “5% genuine savings rule”, meaning at least 5% of the property value must be genuine.

However, interpretations vary:

This flexibility is particularly valuable for WA first-home buyers who have steady income but limited time to build a long savings record.

How to Turn Non-Genuine Savings into Genuine Savings

If most of your deposit comes from gifts or other sources, don’t panic — you can “season” your savings.

Here’s how to make them lender-acceptable:

1. Hold the funds in your account for at least 3 months.
   Most lenders will then consider them “genuine.”

2. Avoid moving funds between accounts frequently.
   Keep it simple for verification.

3. Show rental history.
   Lenders like Keystart or select banks will accept 6–12 months of on-time rent as proof.

4. Document everything.
   Keep records of how and when money was received and saved.

Example:
If Emily receives $15,000 from her parents and keeps it untouched in her savings account for 3 months, many lenders will now treat it as genuine.

Common Myths About Genuine Savings

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Tips to Build Genuine Savings Faster

1. Automate your savings.
   Set a weekly transfer into a separate “home deposit” account.

2. Show rental reliability.
   If you’ve paid rent on time for 12+ months, ask your broker to highlight it.

3. Avoid unnecessary credit activity.
   Limit Afterpay, credit cards, or multiple loan applications.

4. Hold your savings in one place.
   Lenders love a clear, steady statement history.

5. Use windfalls strategically.
   Add tax returns or gifts early and let them season for 3+ months.

Case Study: Emily’s Path to Approval

Emily and her partner had saved $18,000 over a year but also received $10,000 from family. Their mortgage broker advised them to keep the gifted funds in their savings account untouched for three months while continuing their usual savings pattern.

When they applied, the lender accepted the full $28,000 as genuine savings, noting their consistent history and responsible rent record — leading to a successful pre-approval.

Final Takeaway: Build a Lender-Approved Savings Strategy

The line between genuine and non-genuine savings can seem confusing, but it really comes down to one thing: consistency over time.

If you can prove you’ve saved steadily — or demonstrate similar discipline through rent or stable finances — WA lenders are far more likely to say yes.

Next Step:
Talk to a local WA mortgage specialist who can review your savings history, explain what your preferred lender will accept, and help you structure your deposit for approval success.

Disclaimer

The information in this article is general in nature and does not constitute financial advice. You should consider your own circumstances and seek professional guidance before making financial decisions.