Family assistance with a deposit is common, especially for first home buyers, but lenders treat gifted funds differently to savings you've built up yourself.
Lenders generally want a gift letter
Most lenders require a signed statement from whoever is gifting the funds, confirming the money is a genuine gift with no expectation of repayment — not a loan disguised as a gift, which can affect how your application is assessed.
Timing and paper trail matter
Lenders typically want to see the funds arrive in your account with a clear paper trail well before you apply, rather than appearing right before settlement, to avoid any ambiguity about the source of funds.
A gift doesn't always replace genuine savings requirements
Depending on your LVR and lender, a gifted deposit may still need to be paired with some evidence of your own savings pattern — see our related article on genuine savings for how that requirement typically works.
Chris Brown
Managing Director & Finance Broker at New Vision Financial Services, a credit representative under Australian Credit Licence 384704 and a member of the FBAA and AFCA. More about Chris →
Frequently asked
Does a gifted deposit need to come from a family member?
Most lenders prefer gifts from immediate family, though policies vary. A gift from someone outside your immediate family may be viewed differently or require more explanation.
Will my parents need to prove where the gifted money came from?
Sometimes — particularly for larger amounts, lenders may ask for evidence of the source of the gifted funds as part of standard anti-money-laundering checks.
Can a gifted deposit be a loan that gets repaid later?
If it's genuinely a loan rather than a gift, it needs to be disclosed as such — misrepresenting a loan as a gift can affect your application's validity and your obligations to the lender.