Genuine savings: Why the latest changes to the Commonwealth Bank’s credit policy could benefit you


If you are you saving up to buy your first home, then there’s a chance you may have heard about something called genuine savings.

Genuine savings could be required if you are looking to get a home loan to purchase your dream house.

Today’s blog post looks at genuine savings – what they are, why you may need them, and the latest changes in Commonwealth Bank policy regarding them.

What actually are genuine savings?

In short, genuine savings are savings which have been sitting untouched in your savings account for three months at a minimum, that you made yourself – it was not money which was, for example, willed or gifted to you.

Genuine savings can be progressively saved up, and can include in some cases rent money, investments, and trust funds that they have contributed to.

Why do you need them?

The purpose of genuine savings is so that banks can be sure that you are able to save and will be able to pay back your loan.

While for some loans if the LVR is low enough and deposit big enough, or if you have a guarantor, you will not need any genuine savings, for some loans genuine savings will be required.

To know if you need genuine savings when applying for your home loan, speak to your mortgage broker.

Commonwealth Bank’s changes to genuine savings policy

The Commonwealth Bank have recently made changes to their loans policy regarding genuine savings.

This bank requires you to have five percent of the property’s worth in equity, savings, or both, if the LVR is over ninety percent.

They also require this in the case that you are under the Home Guarantee Scheme.

Notably, the Commonwealth Bank have reduced the savings period to just one month, instead of three.

They have also included gifts from immediate members of the family, as well as bonuses, tax refunds, and inheritances as acceptable forms of genuine savings.

These changes may make it easier to get a home loan for your dream home.

Key points

  • Genuine savings provide assurance to lenders that you can pay back the loan.
  • You may not need genuine savings depending on the LVR and deposit amount.
  • CBA have announced important changes that could benefit you.


Ultimately, it is important to be aware of what genuine savings are and how much you will need when applying for a loan.

For more information about the CBA’s updates to genuine savings policy, or for any concerns regarding home loans, please get in touch with the friendly team at AA Finance Solutions.

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