Gifted Deposit Mortgage in Australia: Lender Evidence

A gifted deposit can fund an Australian mortgage deposit when the lender accepts the donor, the money trail and the gift’s terms. The lender can still require genuine savings, which is money it accepts as evidence of saving or holding funds over time.

For a broker, the first task is to establish whether the money is genuinely non-repayable. Then separate the funds available for settlement from the funds that meet the selected lender’s savings test. A signed gift letter supports the file, but it doesn’t establish the transfer or remove an undisclosed liability.

Classify the Gift

A genuine gift transfers money to the buyer without an obligation to repay it or give the donor an interest in the property. Establish the arrangement with both the donor and the recipient before describing it as a gifted deposit home loan.

Record the following facts in the file.

• The donor’s full name and relationship to each recipient.
• The amount, transfer date and any amount still promised.
• Who owns the money and whether someone else controls its use.
• Any repayment obligation, including repayment only when the home is sold.
• Any interest charge, security over the home or claim to future sale proceeds.
• Whether the donor expects to become an owner or guarantor.

A parent who expects the money back has made a family loan. Even an interest-free loan needs its actual repayment terms recorded and assessed with the buyer’s other liabilities. A declaration calling it a gift doesn’t change that agreement.

As at October 2026, National Australia Bank (NAB)‘s application guide asks for a contributor’s letter detailing the contribution and any repayment conditions. State those conditions accurately, even when the family informally calls the payment a gift.

A guarantor supplies a separate promise or security supporting the loan. Keep that arrangement separate from a cash gift and use the home loan guarantor guide for its assessment.

A gifted equity mortgage involves a property transfer or discounted family sale instead of a cash transfer. It needs the contract, ownership details and lender valuation treatment assessed separately. A cash gift letter alone doesn’t establish the property’s equity or the amount the lender will advance.

Trace the Money

Trace a gifted deposit from the donor’s source through the transfer to the recipient’s current balance. Match the amount and date on both sides, then account for any later spending. A transfer receipt proves a payment occurred, while current statements show what remains available.

For example, a donor funding the gift from a property sale can supply the settlement statement and the account entry for the proceeds. If the donor borrows the money, record that origin and establish whether the buyer has any repayment obligation. Don’t treat a transfer through a parent’s account as proof that the buyer’s original borrowing has disappeared.

A Fictional Purchase

Elise Hart buys a $700,000 home to live in. Her mother, Ruth Hart, gives her $70,000 on 15 September 2026 from existing savings. Elise applies two weeks later and has $30,000 of her own savings, held for more than three months.

The example assumes the lender’s valuation equals the purchase price. The proposed loan is $630,000 before any insurance premium or lender low-deposit charge, giving a 90% loan-to-value ratio (LVR). LVR is the loan amount divided by the property value used by the lender.

Funds or use	Amount	Evidence or assumption
Elise’s own savings	$30,000	Account history showing the balance and its source
Ruth’s gift	$70,000	Donor declaration, donor account debit and Elise’s matching credit
Other borrowed funds	$0	Assumes Elise has no separate loan funding the purchase
Total accessible cash	$100,000	Both amounts remain available
Buyer contribution to price	$70,000	$700,000 price less the $630,000 loan
Purchase costs	$20,000	Assumed purchase costs including stamp duty and conveyancing, with any applicable tax
Cash left after settlement	$10,000	$100,000 less the contribution and assumed costs

These costs are illustrative, not a stamp duty quote for a particular state. The minimum deposit guide explains the complete funds-to-settle calculation.

If Elise has already paid $35,000 of the price as a contract deposit, her remaining cash is $65,000. At settlement, the remaining price contribution is $35,000 and the costs are $20,000. The same $10,000 remains, because the contract deposit counts towards the price once.

If Elise also takes a $10,000 personal loan, record it as borrowed funds and a liability. It increases cash to $110,000, but the lender must assess its repayments. It doesn’t become Elise’s own savings by sitting beside the gift.

Apply Lender and Insurer Rules

Apply the lender’s gift rule and savings rule separately to the same funds. A gift can cover the purchase contribution while falling outside the lender’s current genuine-savings test.

The table compares Elise’s $700,000 purchase, 90% base LVR, $30,000 savings and recently received $70,000 maternal gift. It tests the deposit evidence only. Income, other debts and the property still need assessment.

Lender and policy date	Gift and donor treatment	Savings test for this scenario	Evidence consequence
Macquarie, 10 September 2026	Family or friend gifts need donor confirmation of the amount and non-repayment	Above 85% LVR, excluding capitalised low-deposit fees, 5% of the price must be genuine savings. Gifts can count after being held for at least three months	Elise needs $35,000 qualifying funds. Her $30,000 leaves a $5,000 gap while the recent gift is outside the holding period
Community First Bank, effective August 2025, consulted October 2026	Donor must be related to a borrower and confirm a non-repayable gift for the purchase. Gifted funds must reach a Community First account before formal approval	On this ordinary purchase, its 5% savings test applies above 90% LVR. Gifts are an accepted source, with no minimum holding period when their source can be traced	Elise’s 90% base scenario doesn’t trigger that threshold. The related donor, receipt timing and traceable source still apply

The rules come from Macquarie’s credit guidelines, section 2E and Community First’s verification manual, sections MP46.13 and MP46.14. A gift therefore doesn’t create a universal requirement to save another 5% personally.

Recalculate the applicable LVR when a fee is added to the loan. Keep a fee’s treatment within the selected lender’s threshold calculation. The genuine savings guide covers the wider evidence rules, while no genuine savings loans covers other deposit sources.

The Insurer’s Separate Test

Lenders mortgage insurance (LMI) protects the lender against covered losses and can add a separate deposit condition. Helia’s 10 August 2026 underwriting guidelines, page 18 accept received gifts from immediate family. The lender must retain evidence that the borrower received the pledged amount.

For Helia’s standard product above 90% base LVR, at least 5% deposit funds must come from an acceptable non-borrowed source. They must be in the borrower’s name at application and in the borrower’s bank account before settlement. Gifts from outside immediate family don’t qualify under that rule.

If Elise’s base LVR rises to 91%, the 5% requirement on the $700,000 price is $35,000. Her received $70,000 maternal gift can meet that source requirement. Helia’s test doesn’t remove a lender’s separate savings-history condition, and this example doesn’t establish which insurer either lender uses.

A broker can use Bulma’s Policy Advisor to compare gift and savings rules, with the quoted lender wording retained in file notes. Record the lender’s conditions for this application before relying on that comparison for lodgement.

Prepare the Deposit Evidence

Prepare a document schedule that connects the gift terms to the actual money available. Give each item an owner and record what remains outstanding before submission.

Document	Who supplies it	What it establishes
Gift declaration or lender gift form	Donor, with recipient details	Amount, relationship, purpose and actual repayment or ownership terms
Donor identity evidence	Donor, through the lender’s required process	Identity behind the declaration and transfer
Donor source records	Donor	Origin of the money, such as savings history or sale proceeds
Transfer and recipient statements	Donor and buyer	Matching debit and credit, account ownership and current funds
Savings evidence	Buyer	Funds meeting the selected lender’s separate savings test
Purchase contract and deposit receipt	Buyer or conveyancer	Price, property, deposit already paid and settlement timing
Written application-specific conditions	Lender, obtained by the broker	Required account, transfer deadline, form and any insurer condition

Collect the documents the selected lender requires. The schedule is a preparation aid, not a claim that every lender requests every item.

Model Mortgage Gift Letter

Use this fictional gift letter as a model for an Australian mortgage file. Replace the example facts with the actual arrangement. The selected lender’s own form and current requirements take precedence.

Date: 29 September 2026

To the home loan assessor

I, Ruth Hart, confirm that I gave my daughter, Elise Hart, $70,000 on 15 September 2026 towards her home purchase.

Property reference: 8 Example Street, Exampletown. Loan reference: EH-700.

The money was transferred from my personal savings account to Elise’s personal account. The attached statements identify both accounts and the payment.

The $70,000 is an unconditional gift. Elise is not required to repay it, including if she sells the property. I will not charge interest.

I retain no ownership interest in the money or property through this gift. I have no security over the property or claim to its future sale proceeds.

Donor contact: Ruth Hart, ruth.hart@example.com, telephone 0400 000 000.

Recipient contact: Elise Hart, elise.hart@example.com, telephone 0400 000 001.

Donor signature: Ruth Hart. Signed: 29 September 2026.

Recipient acknowledgement and signature: Elise Hart. Signed: 29 September 2026.

The typed names above show the letter’s layout. Obtain actual signatures in the form the lender accepts, and attach the transfer evidence. A letter of gift for a mortgage must describe the family’s real agreement.

If the donor later mentions repayment or a share of the home, record the unresolved terms and return the declaration for correction. Present the arrangement to the lender as it actually stands. Don’t lodge it as an unconditional gift while conflicting terms remain.

Before submission, reconcile the declared amount against the account trail and funds-to-settle schedule. Confirm that each applicable savings and insurer condition has supporting evidence. A complete document pack supports assessment, but approval still depends on the lender’s credit decision and the property.