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Links Property Finance · Specialist mortgage broker, Sydney: Using an Inheritance to Buy a Home

An inheritance changes what you can buy, but it arrives with an estate, a timeline you do not control and sometimes siblings.

Reviewed by Charles Touma Updated 18 October 2026

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Received an inheritance? How do you turn it into a home properly?

Once the money is in your account with the estate papers, lenders treat it as your deposit; some still want genuine savings beside it. Buying before the estate settles is harder, since the funds are not yet yours.

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If you inherit a share of a property, refinancing to buy out the other beneficiaries is the usual route.

Part of the complex lending guide.

From a real Links file: a couple whose deposit included an inheritance, and why the lender was chosen for how it treated those funds.

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Choose any that apply. Each shows roughly how much it changes the figure, the way a lender’s assessment would.

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is an indicative borrowing figure at today’s typical rates. Lenders typically count around 80% of rental income, which is why an investment purchase can lift your number, your real figure comes from a proper assessment.

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Inheritance as your deposit

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  • Lenders accept inherited funds as a deposit, the question is how much evidence travels with the money.Expect to show where it came from: a letter from the estate's solicitor or executor, a copy of the distribution statement, and the bank trail from the estate to your account. That paper trail is not suspicion, it is standard verification, and having it ready is the difference between a smooth approval and weeks of back-and-forth.
  • The wrinkle is genuine savings. At low deposits, many lenders want to see part of the deposit saved by you over time, and an inheritance, like a gift, does not automatically qualify on arrival.Money that has sat in your account for a few months typically converts to seasoned funds, and some lenders will accept a rental history as a substitute. Which rule applies depends on the lender, which is exactly the selection work a broker does before anything is lodged.

Buying before the estate settles

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  • Estates take time. Probate, asset sales and distribution can run many months, and the property you want to buy may not wait. What a lender will do with an expected inheritance is limited: an amount that has not been distributed generally cannot be counted as your deposit, however certain it feels. What can be done is planning, verifying your borrowing position now, structuring the purchase so the timing works, and in some situations using other levers, existing equity or a guarantor arrangement, to move first with the inheritance clearing the bridge later.
  • If you are selling an inherited property and buying with the proceeds, the sequencing questions are the same as any sell-and-buy, with an estate's timetable added.A long settlement negotiated on the purchase is often the simplest tool available.
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Inheriting a share of a property

The most common hard case: a home left to two or three siblings, and one of you wants to keep it.

Read the full detail

Common questions about inheritance and home loans

Do lenders accept an inheritance as a house deposit?

Yes, with evidence of the source: typically a letter or statement from the estate's solicitor or executor and the bank trail showing the funds arriving.

At low deposit levels, genuine savings rules can also apply, which may mean holding the funds for a period or choosing a lender whose policy accepts inherited money as it stands.

Can I borrow against an inheritance I haven't received yet?

Generally no, an undistributed inheritance is not yours to pledge, and lenders will not count it as a deposit.

What you can do is plan the purchase around the estate's timetable, or use other resources, equity or a guarantor, to move sooner, with the inheritance restructuring the loan when it arrives.

I inherited a house with my siblings and want to keep it. What loan do I need?

A buyout works as a purchase-and-refinance in one: a new loan in your name pays your siblings their agreed shares and the title transfers to you.

Your inherited share counts like equity already in the property, which usually makes the deposit side straightforward, the assessment then turns on whether your income services the loan.

Does an inheritance count as genuine savings?

Not automatically. Where genuine savings rules apply, usually deposits under 10 to 15 per cent, an inheritance is treated like a lump sum: some lenders want it held for a period first, some accept a rent history instead, and some have no requirement at all. The genuine savings guide covers the detail.

Is there stamp duty on inheriting a property in NSW?

Usually only a nominal amount on a transfer to a beneficiary under a will, but a buyout between beneficiaries can attract duty depending on how it is structured. Confirm the specifics with your solicitor before the buyout price is agreed, because duty changes the real cost.

Get advice on using an inheritance to buy a home

Charles can map the timing, the evidence lenders will ask for and what you could borrow, before the estate settles.

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Charles Touma, mortgage broker at Links Property Finance
Reviewed by Charles Touma

Director & Mortgage Broker · MFAA member · Credit Representative 579003 under ACL 389328

About Charles · MFAA register · ASIC register · Complaints processEvery page is reviewed by Charles before it is published and checked against current lender policy and the official scheme pages linked where figures appear.

General information only, not credit, legal, tax or financial advice. Estate, duty and tax outcomes depend on your circumstances, confirm them with your solicitor and accountant. All lending is subject to individual assessment and approval.