Links Property Finance · Mortgage broker for gifted deposits, Sydney: Gifted Deposit Home Loans

Most do, provided it is a gift and can be documented. The standard requirements are a signed letter from the giver confirming the money is unconditional and not repayable, and bank statements evidencing the transfer.

What varies between lenders is whether they still require some genuine savings of your own alongside the gift, and how long the funds need to have been in your account.

Immediate family is the standard answer, most commonly parents. Some lenders accept grandparents or siblings, and policy on more distant relatives varies considerably.

Gifts from friends, employers or unrelated parties are generally not accepted. If the giver is not a parent, it is worth confirming acceptability with the lender before you rely on the money.

No, provided it is documented as a gift. A gift is not a debt, so there is no repayment to factor into serviceability.

If the same money were treated as a family loan, it would be assessed as a liability and would reduce your borrowing capacity. That is precisely why lenders insist on clarity about which one it is.

It varies: some lenders accept a gift letter and evidence of the transfer regardless of timing, while others want the funds held for a period, commonly three months, particularly where genuine savings rules also apply.

As a practical matter, earlier is always easier: funds that have been in your account for months generate fewer questions and less last-minute document chasing.

Not while calling it a gift. The letter you all sign states the money is unconditional and not repayable, and signing that while privately intending otherwise is not a position anyone should be in.

If repayment is expected, the workable structures are a documented family loan, which the lender will assess as a debt, part ownership of the property, or a guarantee where the family retains their money and pledges equity instead.

It can usually be done, with more documentation. Lenders generally want to trace the funds, which can mean statements from the overseas account, evidence of the transfer and sometimes translated documents.

Policy differs considerably between lenders, and some are notably more restrictive than others. Raise it at the beginning of the process rather than midway through, because it affects which lenders are worth approaching.

They suit different families: a gift permanently transfers money and leaves the giver with no ongoing liability, which is cleaner but reduces their assets, while a guarantee keeps their money in place but puts part of their property on the line until it is released.

A guarantee keeps their money where it is but creates a real obligation against their property that affects their own borrowing until it is released. Where family has equity rather than spare cash, a guarantee is usually the practical option. More on guarantor loans.

Generally no: Australia has no general gift tax, but there can be consequences depending on where the money comes from, particularly a trust, a company or overseas, or where the giver receives a government payment.

This is not tax advice. Anyone giving a substantial amount should speak to their accountant, and anyone receiving a Centrelink payment should check the current rules with Services Australia.