Rules, Letters & What Lenders Look For
Yes, you can use gifted funds as a deposit toward a home purchase. However, most lenders require clear evidence that the funds are a true gift, not a loan, and, in many cases, they do not count as genuine savings unless specific exceptions apply.
This guide explains:
First Step – Speak With a Mortgage Broker
Many first-home buyers receive financial support from parents or other family members. This support can make the difference between waiting years or entering the market sooner.
However, gifted deposits come with strict lender rules. If the gift isn’t documented correctly or treated as a loan, it can derail approval late in the process.
This guide explains how gifted deposits work in Australia, what lenders look for, and how to avoid common mistakes.
If you’re also working out how much you need overall, see How Much Deposit Do You Need to Buy a Home?
What Is a Gifted Deposit?
A gifted deposit is money provided by a family member (usually parents) to assist with the purchase of a home, with no expectation of repayment.
From a lender’s perspective, the key question is simple:
Is this money genuinely a gift, or is it a disguised loan?
That distinction determines whether the deposit is accepted.
Who Can Gift a Deposit?
Most lenders accept gifts from:
Gifts from friends or extended family may be accepted by some lenders, but policies are tighter, and documentation requirements are higher.
Does a Gifted Deposit Count as Genuine Savings?
In most cases, no. (depends on lender)
For many lenders:
Common genuine savings substitutes include:
This is explained in detail in Genuine Savings Explained →
When Can Genuine Savings Be Waived?
Genuine savings requirements may be waived if:
Learn more in Guarantor Loans Explained – Family Pledge →
What Is a Gift Letter (And Why It Matters)?
A compliant gift letter typically includes:
Some lenders may also request:
Gift letter requirements vary by lender. Some banks use their own templates, while others accept broker-prepared letters if all criteria are met.
Common Mistakes With Gifted Deposits
Many first home buyers run into trouble by:
These issues can trigger reassessment or decline, even late in the approval stage.
Gifted Deposit vs Family Guarantor: Which Is Better?
Can First Home Buyer Grants Be Used With a Gifted Deposit?
How a Mortgage Broker Helps With Gifted Deposits
As your broker, I help you:
This avoids last-minute surprises and ensures the strategy fits your long-term goals.
Next Steps – Speak With a Mortgage Broker
Using a gifted deposit can be a powerful way to buy sooner, but only if it’s structured correctly.
Before committing, it’s worth confirming: