Does Money in a Term Deposit Count as Genuine Savings When Applying for a Home Loan?
‘Genuine savings’ doesn’t mean savings account — it means funds held and grown over time in a consistent, verifiable way. A term deposit does that, and often better than a transaction account.
Yes — a term deposit typically satisfies the genuine savings requirement, provided the money has been held for 3 months or more. But the documentation needs to be right, and a few lenders apply their own variations.
What Qualifies as Genuine Savings
- Term deposits held for 3+ months
- Regular savings accounts with a pattern of contributions over 3+ months
- Shares or managed funds held for 3+ months
- First Home Super Saver Scheme withdrawals
- Some lenders accept equity in an existing property as equivalent
What Doesn’t Always Qualify
- A lump sum that appeared in your account recently with no savings history
- A gifted deposit without seasoning (though many lenders accept this with documentation)
- Money borrowed from another source and sitting in your account
The Documentation Your Lender Will Want
A copy of your term deposit certificate showing the investment date and amount is usually sufficient. Your broker will combine this with your bank statements to demonstrate the full deposit picture to the lender.
When the Term Deposit Is Due to Mature
If your term deposit matures after your application is submitted, that timing needs to align with your settlement date. A deposit that’s locked away until after settlement is a problem — but one that can be resolved if flagged early, not on settlement week.
You may wish to speak with a licensed mortgage broker to assess your personal circumstances.
This is general information only. Genuine savings requirements vary by lender and LVR. Speak with a licensed mortgage broker before submitting your application. All loans are subject to lender approval.
Sources: APRA Prudential Practice Guide APG 223; ASIC MoneySmart, Home Deposits Guide 2025; MFAA Industry Intelligence Service Report 2025.
