Genuine Savings

[THEHEATH]

Could somebody please spread some light on the requirements for genuine savings. Does the money have to have been regularly contributed into a seperate account? Should this account only have those "genuine savings" in it?

Basically I've been putting some money aside which wasn't necessarily for property in a seperate account, and now I've got another lump sum I want to stick in that account, but will want to pull out later. Just wondering if this will "contaminate" the genuine savings in case I do decide down the track I will use this property/account down the track to demonstrate genuine savings.

Cheers.

 

[Qlds007]

Lenders and more importantly mortgage insurers dont like seeing unexplained lump sum deposits into the account and prefer to see a steady rising balance.

In saying this they understand that you will withdraw and deposit funds as time goes on and as long as the individual amounts can be satifactorily explained then you should be fine.

Of course there are still lenders out there that dont require genuine savings and that maybe the better avenue if in doubt.

 

[Bradsdad]

Could somebody please spread some light on the requirements for genuine savings. Does the money have to have been regularly contributed into a seperate account? Should this account only have those "genuine savings" in it?

Basically I've been putting some money aside which wasn't necessarily for property in a seperate account, and now I've got another lump sum I want to stick in that account, but will want to pull out later. Just wondering if this will "contaminate" the genuine savings in case I do decide down the track I will use this property/account down the track to demonstrate genuine savings.

Cheers.

No drama at all with this. Lenders will usually want to see 3-6 months genuine savings. This is done by way of bank statements. If you depsoit funds in and then take them back out it doesn't stop the fact that the reamaining funds are "genuine". It may just mean supplying an extra statement or 2.
On the other hand if you were relying on a portion of the lump sum deposit it would cause an issue if depsoited less that 3 months ago.


Regards
Steve

 

[THEHEATH]

Cheers guys.