Given a Gift for a Deposit towards my Home Loan

Gift as a deposit

If your parents gift money into your account, or gift assets, such as a car or inheritance (generally the gift has to come from a parent)

Home loan lenders require evidence that the gift is not a loan and does not to be repaid

A signed letter (gift letter) by your parents is enough proof with most lenders

Some lenders require the funds from the gift to be in your account before applying for the loan

If the gift deposit is large enough, you may not need to save a deposit or you require less of a deposit

Home loan lenders will still look at bank statements to understand why you don’t have genuine savings and to understand your regular spending habits

Generally lenders have strict criteria regarding gift giving, a gift that comes from a parent is the most accepted

If immediate family, like siblings or grandparents provide you with a gift, the lender will make a decision after looking at your case

Most lenders will not accept friends, colleagues or a third party that agrees to gift you a deposit

Lenders want to avoid the case of fraud as much as possible with gifting deposits

Also the person may not have gifted you the money for the deposit, but lent you the money instead

By submitting this form I am accepting of the Terms and Conditions & Privacy Policy