What Actually Counts as a Deposit (And What Doesn't)
September 17, 2026
"Deposit" sounds like one simple number, but lenders don't treat every dollar of it the same way. Where the money came from — and how long it's been sitting there — can matter as much as how much you've got.
The core rule: 5% genuine savings, held for 3 months
Most lenders require that at least 5% of the purchase price be "genuine savings" — money that has been in an account in your own name for a minimum of three months before you apply. This rule applies most strictly when your deposit is smaller (commonly when you're borrowing above 85% of the property's value), because it's the lender's way of checking you can actually save and budget, not just receive a lump sum from somewhere else.
What counts as genuine savings
Lenders generally accept:
- Cash sitting in a savings, offset, or term deposit account held in your own name for at least three months
- Shares held in your name for three months (some lenders only count 80% of their value, since share prices move)
- Regular salary-sacrifice contributions set aside separately for three months
- A consistent rental payment history, which some (not all) lenders will accept as evidence you can service regular repayments
What doesn't count — at least not straight away
These are treated differently, and most lenders exclude them from the "genuine savings" bucket if received within the last three months:
- Tax refunds
- Inheritance
- Gifts from family (these go in their own category — a "gifted deposit", discussed below)
- Proceeds from selling an asset, like a car
- Bonuses or back-pay
- First Home Super Saver Scheme (FHSSS) withdrawals
- Cryptocurrency, with rare exceptions
The workaround is simple, if not instant: a gift or a tax refund that sits untouched in an account in your name for three months generally becomes genuine savings by the time you apply, the same as any other deposit. It's the parking period that matters, not the original source.
Gifted deposits are their own category
A cash gift from a parent or family member doesn't need to sit for three months to be usable — but it doesn't count toward your 5% genuine savings requirement either, unless you let it season in your account first. Most lenders will ask for a signed gift letter confirming the money is a genuine, unconditional gift with no expectation of repayment, since a loan disguised as a gift changes your real debt position.
A guarantor changes the shape of the deposit, not just the size
Instead of contributing cash, a family member (typically a parent) can offer equity in their own home as additional security for your loan. A guarantor arrangement can reduce or remove the genuine savings requirement entirely and, because it effectively increases your security against the property, can also help you avoid Lenders Mortgage Insurance (LMI) without needing a full 20% deposit yourself. The trade-off is real, though: the guarantor is on the hook if you default, so it's a decision for them to make carefully, not just you.
The First Home Super Saver Scheme is a separate lever
The FHSSS lets you make voluntary contributions into your super and later withdraw them, concessionally taxed, to put toward a first home deposit. The current caps are up to $15,000 of voluntary contributions counted per financial year, and up to $50,000 in total across all years. It's a genuine way to build a deposit faster through super's tax treatment, but the withdrawal itself doesn't count as "genuine savings" in the lender sense above — it's assessed as its own line item, alongside whatever else you bring to the deposit.
Why this is worth sorting out early
The practical implication is timing: if part of your deposit is a family gift, a tax refund, or savings you only recently consolidated into one account, three months of lead time before you apply can be the difference between a straightforward approval and a lender asking follow-up questions about where your money came from. Working out today which of your dollars are genuine savings, which are a gift, and which need time to season is a five-minute exercise that can save weeks later in the process.
Our First Home Buyer Calculator lets you model your deposit, LMI exposure and borrowing power together, so you can see how a smaller genuine-savings component or a guarantor arrangement actually shifts your numbers.
This article is general educational information, not personal financial or lending advice. Genuine savings policies, FHSSS caps and gift-letter requirements vary by lender and can change — confirm current requirements with your lender or a licensed mortgage broker before relying on them for a real application.