$25,000 from mum and dad, sitting in your account, ready to go. Plenty of lenders will still refuse to count it as your deposit. Genuine savings rules on a home loan aren't about how much money you have: they're about proving at least 5% of the purchase price sat in your name for three months, and more low-deposit applications stumble on the proof than the amount.
The RBA lifted the cash rate in February, March and May, then held at 4.35% in June, and rising rates have thinned the buying crowd: auction clearance rates sit in the low 40s. Prepared borrowers hold real negotiating power. The catch: lenders check low-deposit files harder in a rising-rate cycle, and genuine savings is the first page they turn to.
What are genuine savings on a home loan?
Genuine savings are funds you saved or held yourself, in your own name, for at least three months. Most lenders apply the test above 90% of a property's value; some above 85%. The standard hurdle is 5% of the purchase price, shown across three months of statements.
Note the distinction. How much deposit you need is one question; where it came from is another. A lender can be satisfied with the size and still decline the source. Two different tests. Both have to pass.
What counts, and what doesn't?
| Counts as genuine savings | Doesn't count (yet) |
|---|---|
| Savings built up or held for 3+ months | A gift or inheritance received last month |
| Term deposits and shares held 3+ months | Borrowed funds, including personal loans |
| Equity in a property you already own | A tax refund or bonus that just landed |
| FHSS amounts released from super (most lenders) | The First Home Owner Grant |
| 12 months of on-time rent through a licensed agent (many lenders) | Proceeds from selling the car |
Your rent might already be doing the job. Many lenders accept 12 months of on-time rent paid through a licensed property manager in place of a savings history, on the logic that paying $2,200 a month proves the same discipline as banking it.
One pattern we've watched trip up strong applicants: a lender asking for genuine savings wants three months of statements showing the deposit didn't appear last week, and one large unexplained transfer can send a clean file back for full re-verification. Keep the money still.
Is a gifted deposit dead on arrival?
No. It just isn't genuine yet. Park a gift in your own account for three months and most lenders will count it in full, because the test measures holding as well as saving.
That gives gift-deposit buyers three routes. Wait out the three months. Lean on a rental ledger instead. Or restructure: if your parents would rather offer security than cash, a guarantor home loan removes the genuine savings hurdle another way, using their equity instead of your statements.
The test also fades as your deposit grows. At or below 85% of a property's value, source scrutiny typically relaxes, and under specialist lending policies available through Wity, any borrower can go to 85% with no LMI: a 15% deposit skips the insurance premium and most of the source questions.
Where do FHSS and the 5% Deposit Scheme fit?
First Home Super Saver releases pass the test almost by definition. You made the contributions yourself, over time, through the ATO's release process, so most lenders treat the money as genuine savings. Caps: $15,000 a year, $50,000 lifetime.
The Australian Government 5% Deposit Scheme (formerly the First Home Guarantee) is where buyers get caught. Since 1 October 2025 the scheme has carried no income caps and no place limits, with price caps of $1.5 million in NSW and $1 million in Queensland. But Housing Australia guarantees the loan; it doesn't approve it. The lender still runs its own genuine savings test on your 5%, so a scheme-eligible buyer with a fully gifted deposit can still be declined. Scheme eligibility and lender approval are separate gates. Clear both.
Same buyer, two paths
Michelle coordinates rosters for an aged-care provider in Ipswich, west of Brisbane, and is buying a $640,000 townhouse under the 5% Deposit Scheme. Her 5% hurdle is $32,000. She holds $14,000 saved over two years, plus a $25,000 parental gift that landed on 1 July 2026.
Path A: apply in July. Only the $14,000 counts. She sits $18,000 short, and the application is likely declined despite $39,000 in the bank.
Path B: apply with her rental ledger. Michelle has paid $520 a week through a property agent for 14 months, on time. Many lenders accept that ledger, so the full $39,000 works as her deposit now, with no waiting.
If her lender won't take rental history, Path C is patience: season the gift until 1 October and apply then. Ten weeks of waiting instead of a decline on her file.
Based on typical scenarios. Individual outcomes vary.
What should you do this month?
Three moves. First, stop shuffling money between accounts: a clean three-month statement history is worth more to an assessor than a slightly higher balance. Second, if you rent through an agent, request your ledger now. Third, match the policy before the rate: genuine savings rules differ between lenders more than rates do. The Wity Borrowing Power Assessment models your capacity across 45+ lenders and flags which ones accept rental history, seasoned gifts or FHSS releases for your file.
Deposit rules are one chapter; the First Home Buyer Guide 2026 covers the rest.
Want to see how your deposit stacks up? Start the Wity questionnaire → — free, no credit check, two minutes.