Non Genuine Savings, or as we like to call it. Mum & Dads Money!
So what does it mean to be “Non Genuine”? Well, to start, it doesn’t mean you’re a drug dealer. How this comes about, is that when applying for a home loan you generally need a deposit and on top of that, you need to show that you have GENUINELY saved the money. Normally you do this by showing a saving history, or that the money has been in your bank account for a minimum determined amount of time. (Normally around 3 months)
So What Does It Mean To Have Non Genuine Savings?
If you can’t show how you have saved for the deposit then this is considered non genuine savings, the most common reason for this, is mum and dad are trying to help their children get ahead and help with the deposit. (especially in todays market).
Non-genuine savings can also include:
• Gifts and inheritance
• Equity in an existing property
• Tax refunds
• Sale of an asset
• Sale of shares
So don’t stress if you have your parents trying to help you out, or that you have only recently come across some money. Just click on non genuine savings as a feature when comparing home loans.