The difference between genuine and
non-genuine savings
Last updated: 06 October 2025 | Estimated read time: 3 Minutes
When applying for a home loan, lenders will ask about your deposit and not just how much you’ve saved, but also how you’ve saved it. While it might feel a little personal, it’s part of how lenders assess your financial habits and ability to manage a loan.
Your savings will typically be classified as either genuine or non-genuine. Understanding the difference can help you prepare for your application and know what options may be available to you.
What are genuine savings?
The definition can vary from lender to lender, however, put simply, genuine savings are funds you’ve built up over time, usually from your regular income. They show that you’re able to manage your money and save consistently, which can give lenders confidence in your ability to repay a loan.
Examples of genuine savings include:
- Regular deposits into a savings account over several months
- Shares or investments held for at least six months
- Term deposits maintained over time
Even saving consistently for just three months may be enough to demonstrate genuine savings to some lenders.
What are non-genuine savings?
Non-genuine savings are funds that haven’t been saved gradually or haven’t been held in your account for long. These might include:
- Gifts or inheritance
- Tax refunds or bonuses
- Sale of assets (like a car or shares)
- Equity from an existing property
While these funds can still be used for your deposit, some lenders may treat them differently when assessing your application.
Tip: If non-genuine savings are held in your account for at least three months, they may be reclassified as genuine savings by some lenders.
Are gifts and lump sums considered non-genuine or genuine?
Can you use non-genuine savings for a deposit?
How much savings do I need to buy a house?
Want to know how much you could borrow?
Contributor | Barry Saoud, General Manager, Mortgages and Commercial Lending
Barry joined Pepper Money in July 2021 as General Manager, Mortgages and Commercial Lending. He is responsible for the strategic direction and operating performance across product, credit, and settlements for mortgages, commercial loans, personal loans, and direct sales. Read more.
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