5% Deposit No Genuine SavingsHappy Lady with No Genuine Savings Loan

Taking out a 5% Deposit No Genuine Savings loan is possible using specific lenderswho do not require genuine savings at all. The new lenders who offer these types of loans do not require genuine saving of the deposit amount required to be used in the transaction. This type of loan is also at times known as a 95% LVR Non Genuine Savings loan.

What is Genuine Savings?

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:

  2. Equity in another property
  3. Managed funds
  4. 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
  • Inheritance
  • Tax refund
  • And much more

Lenders who offer 5% No Genuine Savings

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.

Interest Rate for loan with 5% No Genuine savings

The interest rate for a loan with 5% no genuine savings is like a normal type of loan.

Costs for 5% No Genuine Saving Loan

The set up costs for most 5% no genuine savings loan is very similar to a normal type of loan.

Is LMI applicable for loans with 5% Non Genuine Savings

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.

Capitalise Risk Fee for 5% No Genuine Savings loan?

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.

Maximum LVR for loan with 5% deposit Non genuine?

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 of the lenders who 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.