Did you know that for loans <85% of home value (PLUS LMI), we don't require genuine savings?
Acceptable forms of genuine savings for LMI loans (genuine savings)
▪ Personal savings (copies of bank statements over minimum of three months)
▪ Term deposit (copy of statement, certificate showing funds held in the customer's name over a minimum of three months)
▪ Sale of real estate (property must be held in the name of at least one of the borrowers; exception to this is property held in a company name with the loan in the name of the directors)
▪ Sale of shares in publicly listed companies (shares must be held in the name of at least one of the borrowers)
▪ Equity from an existing property (property must be held in the name of the borrowers and is evidenced via loan statements and a rates notice)
▪ Sale of assets other than real estate; proof of sale must be provided to indicate the asset was in the name of the borrower (i.e.. car title transfer)
▪ Work bonuses or commissions; evidence provided in line with income verification requirements.
▪ Tax refund; evidence provided by tax return or bank account credit transaction
▪ Inheritance; held by borrower for minimum of 3 months
Given below is an example of how genuine savings is calculated:
▪ Purchase owner occupied property $450,000, COS held
▪ Deposit paid and receipt from a licensed real estate agent $10,000 held and dated 10/09/2016
▪ 5% genuine savings required is $22,500
▪ Assessment conducted 15/10/2016
▪ Savings account statements held from 01/07/2015 – 01/10/2016 showing savings of $30,000 accumulated during statement period with debit of $10,000 on 13/09/2016
▪ 5% genuine savings confirmed
Give us a call on 0425 341 086 or contact us on Facebook to discuss this further and how it applies to you.
