Key takeaways
- Gifted deposits are common and accepted — usually with a signed gift letter.
- The gift letter confirms the money is a genuine gift, not a loan to be repaid.
- Some lenders want genuine savings alongside the gift; others accept a full gift.
- A repayable “gift” counts as a debt and hurts serviceability — so it must be genuine.
The “bank of mum and dad” is one of the biggest forces in Australian property, and there’s nothing improper about it — lenders deal with gifted deposits every day. The trick is knowing the rules: a genuine gift, the right letter, and sometimes a slice of your own savings. Get those right and a family gift is one of the cleanest ways into a home.
How gifted deposits work
A family member gives you money toward your deposit, and the lender treats it as part of your funds — provided it’s a genuine gift. That’s the whole point of the gift letter: a signed statement from the giver confirming the money doesn’t need to be repaid. If it did, it would be a loan, and lenders would count it as a debt against your serviceability.
Gifts and genuine savings
Here’s the wrinkle: a gift often doesn’t count as genuine savings on its own. Some lenders want you to hold a portion of genuine savings (commonly around 5%) alongside the gift; others accept a fully gifted deposit, especially with a strong overall profile or a larger deposit. This is where lender choice can make or break a smooth approval.
Illustrative example. Parents gifting $50,000 toward a deposit, paired with a gift letter, might satisfy one lender completely while another asks the buyer to also show a few thousand dollars of their own genuine savings. Both paths work — it’s about matching to the right lender.
Keep it clean: have the gift letter signed, let the gifted funds sit in your account for a period if you can, and be clear the money is genuinely yours to keep. Vague or last-minute gift arrangements are a common cause of approval delays.
Other things to keep in mind
Large gifts can have implications for the giver — for example around Centrelink means-testing — so it’s worth them getting their own advice. There’s generally no gift tax in Australia, but circumstances vary, so confirm with an accountant. A gift can also pair beautifully with a guarantor arrangement or the First Home Guarantee for buyers with limited deposit.
Broker Insight. We’ve helped buyers who thought they needed years more saving get in sooner with a properly documented family gift. The paperwork is simple when it’s done right the first time.
Got family help? Let’s structure it properly
We’ll sort the gift letter, match you to a lender that accepts your deposit setup, and keep the approval smooth. Free, no obligation.
Book your free game plan callFrequently asked questions
Can my parents gift me a deposit for a home loan?
Yes. Gifted deposits are common and accepted by lenders. Most will ask for a gift letter from the person giving the money, confirming it’s a genuine gift with no obligation to repay. Some lenders also want you to have a portion of genuine savings alongside the gift, while others accept a fully gifted deposit — so lender choice can matter depending on your situation.
What is a gift letter?
A gift letter is a short signed statement from the person gifting the money (usually a parent) confirming the amount is a genuine, non-repayable gift and not a loan. Lenders require it because a gift that must be repaid is really a debt, which would affect your serviceability. The letter is standard, simple, and something we help arrange as part of the application.
Does a gifted deposit count as genuine savings?
Often not on its own. Many lenders distinguish between a gift and genuine savings — money you’ve accumulated over time. Some require a portion of genuine savings in addition to the gift, while others waive the requirement, especially with a larger deposit or a strong overall profile. If you only have a gift, we can match you to a lender that accepts it.
This guide is general information only and does not take your personal circumstances into account. It is not financial or credit advice. Government schemes, lender policies, rates and tax rules change over time and eligibility criteria apply. Speak with us for advice tailored to your situation.