What are genuine savings?

Home loan lenders are required to confirm that your savings are genuine and that you can sustain a specified amount of money in your bank account for six months. Simply put, genuine savings are the finances that you have accumulated and haven’t used. This can help your home loan application.

To verify that your savings are genuine, you must show proof of savings statements for at least six months. This will serve as confirmation that these funds are still saved. Therefore, it is important for you to have a copy or keep your original savings statements or rental statements. If you are sharing a rental property with another person, you must make sure that you get a receipt for your portion of the rent.

If you were awarded with funds for the purchase of a property, deposit them into a savings account first so that the home loan lender can track that the fund was there for at least six months. This would signify the lenders that you are capable of paying the monthly home loan repayments.

One-time deposits or savings plans in the future are not classified as genuine savings. If you do not have proof of your savings, you may also avail a no savings home loan that would still require a deposit but it can come from any other source aside from the accumulated savings.