The purchase price of the property and LMI determine whether genuine savings need to be considered or not while applying for a loan. Once the amount borrowed by you is above 80% of purchase price of the property and you need to provide LMI, genuine savings raises its head. In such a case, the borrower will have to submit all the documents that shows a minimum of 5% genuine savings, which has to be achieved through a period of a minimum of three months. Such a procedure is performed to ensure that you are conscious about spending your money carefully, you are committed to working towards and maintaining a good credit and you are a reliable person.
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