Verification when Deposit is particularly Low
If you want to borrow more than the 90%, most of the lenders will require to verify the genuine savings. At least the 5% of the property value must be genuinely saved. There are very few exceptions, ask advice to an experience Mortgage Broker.
Every bank has a different policy about what can be considered genuine saving. Most of the lenders consider the as genuine the following:
- Savings held or accumulated over 3 months (some lenders 6 months).
- Term deposits held for 3 months (some lenders 6 months).
- Shares or managed funds held for 3 months (some lenders 6 months).
- Equity in real estate.
- Rent paid in the last 3 months (only some lenders).
Each lender has different criteria to define what can be considered as genuinely saved. It is probably wise to show your case to an expert Mortgage Broker who can analyse it and tell you which figures can be counted as genuinely saved.