Gifts
A gifted deposit can make a big difference when trying to buy your first home in Australia. In many cases, parents or close family members provide financial help by gifting money to be used as a home loan deposit.
A gifted deposit is money given to you with no expectation of repayment. Lenders usually require a gift declaration or gift letter, signed by the person providing the funds, confirming that the money is a genuine gift and will not be claimed back in the future.
While a gifted deposit can strengthen your home loan application, most lenders still want to see signs of financial responsibility. This is why it helps to show some personal savings and a record of consistent rent payments. A solid rental history can support your ability to manage regular home loan repayments.
Banks typically prefer the gift to come from immediate family members such as parents. Gifts from siblings, grandparents, or your spouse are also commonly accepted. If the funds come from extended family, like an uncle, aunt, or cousin, lenders may assess the closeness of the relationship and may ask for further explanation or documentation.
Key considerations for gifted deposits:
- A signed gift letter is usually required by the lender
- Your own savings and rental history help demonstrate financial discipline
- Gifts from close family are more readily accepted than those from extended relatives
Before applying for a home loan, it’s a good idea to speak with your lender or mortgage broker to understand their specific policies around gifted deposits.
