• 95% Home Loan with 20k Credit Card for Costs
  • 95% LVR capitalise Stamp Duty
  • 5% Genuine Savings Home Loan
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Contribute 5% genuine savings Home Loan


You’re Able to Contribute 5% Genuine Savings for a Home Loan Deposit, What About Other Expenses?


You might have saved enough money to be able to contribute 5% genuine savings for a home loan deposit, but have you considered how you will pay purchasing costs on top of that? If you have saved up for a 5% deposit with genuine savings, there is a range of different options available to you that can help you cover the extra expenses, such as stamp duty and legal fees, that are associated with buying a home – without having to wait.


The genuine savings rule


The genuine savings rule is a regulation that many lenders follow in relation to deposits. Under the rule, you need to have the full deposit amount in a savings account, term deposit, or other approved source such as shares, for three months without a reduction in the value of the deposit.




If you have money saved up and you are in a position to contribute 5% genuine savings for a home loan deposit, there are a number of different ways that you can pay for the purchasing costs, which means you can enter the property market and achieve your goal of home ownership without having to continue saving once you have your deposit:


  • Credit card. If you can contribute 5% genuine savings for a home loan, you can fund the remaining costs for conveyancing or legal fees and stamp duty from a credit card that is added on to your home loan. The credit card loan will generally be at the same interest rate.
  • Non-genuine savings for costs. You do not need to source the purchase costs from genuine savings. So as long as you have 5% genuine savings for the deposit, you can still fund other expenses from gifts, tax returns, or even personal loans.
  • Use a guarantor. If you use a guarantor, your loan is secured without the need for a deposit. This means you can keep your 5% deposit for other expenses. In this case, while you do not need genuine savings, you will still need to show that you have a steady employment history, sufficient income for repayments, and a good credit record. Your guarantor needs to be an immediate family member and they should have enough cash, or own property in Australia, with enough equity to cover at least 20% of your property price.
  • Take out a larger loan. In some cases, you might be able to take out a larger loan to cover the costs of purchasing your home. The lender can lend you as much as 100% of the purchase price and provide you with the additional funds at settlement to help you cover the costs.


By using one of these methods, you can end up avoiding months or even years of delay in saving up for the additional costs for buying your home.




What should I do to apply for a loan?


If you can contribute 5% genuine savings for a home loan deposit, there are lots of loan options open to you. At ABC Mortgages, we can help you find the right product for your circumstances. Contact us today for a free phone discussion and one of our team members will take you through the products that are available and use our extensive network to find you the right lender.