No Genuine Saving Home Loan with 5% Deposit
Taking out a 5% Deposit No Genuine Savings loan is possible using specific lenders who do not require genuine savings at all. This type of loan is also known as a 95% LVR Non Genuine Savings loan.
What is Genuine Saving?
Genuine savings as it applies to the mortgage process is interpreted as a gradual savings pattern accumulated and saved using a verifiable savings account. Genuine savings also includes an amount of money you have held in your account over a 3 month period like a term deposit or normal savings account. Your genuine savings could also include:
- Equity in another property
- Managed funds
- Money saved in a bank account
What is 5% No Genuine Savings
A 5% No Genuine Savings is a deposit you will use where you can’t prove you have genuinely saved this money over a 3 month period. You don’t need to be the person who saved the money. In most cases we find 5% No Genuine Saving deposits come either as a gift from a family member or cash money saved at home outside a bank account. The 5% No Genuine Savings component could be from any of the following sources:
- Cash Gift
- Cash savings at home
- Sale of a car or an asset
- Tax refund
- And much more
Frequently asked questions
There are a very small number of lenders who do not require genuine savings at all. The lenders could be either banks or non bank lenders.
No, the interest rate for a loan with 5% no genuine savings is like a normal type of loan.
The set up costs are very similar to a normal type of loan.
The lenders who offer 5% Non Genuine Savings have both LMI or Risk Fee options in securing the loan at 95% LVR. In most cases, the Risk Fee option is much more lenient and the cost is like a normal LMI. This should not worry the borrower as this policy is to protect the lender.
Yes, you can capitalise the Risk Fee on a 5% No Genuine savings loan. The maximum LVR inclusive of Risk Fee or LMI will be 100% LVR.
The maximum LVR for a 5% deposit which is not genuinely saved is 100% LVR.
At Mortgage Providers, we know which lenders offer home loans with no genuine savings history. Our brokers can guide you through the process and determine which lenders offer these products and how they would best apply to your circumstances. Give us a call, as we are sure you will be surprised with our ability to get you a loan for this situation.