No Genuine Savings Home Loan Success Story
How A First Home Buyer With No Genuine Savings Got Home Loan Approved
Client at a glance
A single retail manager was able to buy her first home, even though she had no genuine savings (as most of it was a gift from her parents). One of the big 4 banks had declined her loan application because they had a ‘genuine savings policy’ which meant they had to ignore gifts when assessing her borrowing power. However Mortgage Corp’s intimate knowledge of lenders’ policy meant we were able to find her the right lender that was able to approve her no genuine savings home loan.
Client: Rachel, Client of Mortgage Corp since 2016
Marital status: Single, living at home
Income: $65,000 per year
Occupation: Retail Manager
Suburb of property: Newcastle, NSW 2300
Objective: Obtain a mortgage for her first home
Results: Mortgage Corp loan specialist found a lender with a non genuine savings home loan policy that approved Rachel’s loan, even after a Big 4 bank declined it
Rachel was young and single. She lived at home with mum and dad and had been in her job for two years. She loved travelling, had a great lifestyle, but didn’t have much in savings.
Rachel started making plans to buy her own first home and built up her savings to $6,000. Her parents also decided to help her along by giving her $15,000 as a gift.
However she only had $21,000 in the bank and she wanted to buy a house in Newcastle, NSW worth $450,000.
- Rachel had limited savings, and most of it was a gift from her parents i.e. they were not genuine savings
- Find a lender with a no genuine savings home loan policy to lend Rachel enough money to buy her first home
Rachel attended a loan strategy session with us where we discussed how she could achieve her goal of buying her first home. We gave her a savings target and told her to come back to see us when she had saved that much. After a couple of weeks, she had saved enough money and was ready to see us again to go ahead with her loan application.
But instead, her parents took her to their local Big 4 bank branch where they had banked for 20 years and the bank staff said they could do the application there and then.
Her loan was unfortunately declined. Rachel’s parents didn’t realise that their bank had a genuine savings policy and the gift of money they gave to Rachel was not considered a genuine saving.
Long story short, Rachel came back to see us. We presented her loan application to a lender who we knew had a no genuine savings home loan policy, and she was also able to show that she had a strong ability to service her loan and an excellent, stable employment history. Her loan was quickly approved and now she’s happily settled in her new home!
- Found a lender who approved a no genuine savings home loan for Rachel, after another bank declined
- Allowed Rachel to move out of her family home and into her first home
Note: for privacy reasons, names and locations used in this case study are not real client names or locations.