How much I can borrow with gift?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How much I can borrow with gift?

Post by Otto Dargan »

Hi 629cricket. Welcome to the forum.
You can get approved for a home loan if your deposit is coming from a gift from your parents, however, not with all lenders. Banks don’t consider a gift to be the same as your own deposit that you have saved.

Please note you must meet standard lending criteria involving your employment, credit history, serviceability and proof of income. The amount you can borrow depends on your overall situation:
  • 90% home loans: There are a few lenders who allow you to borrow 90% of the purchase price irrespective of the source of your deposit.
  • 95% home loans: One of our lenders can approve a home loan for up to 95% of the purchase price with no genuine savings.
  • 100% home loans: With a guarantor, you can borrow 100% of the purchase price plus the costs of completion.
Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How much I can borrow with gift?

Post by Otto Dargan »

Hi 629cricket,

A gift letter is a letter from your parents or a close relative confirming that they are giving you a gift for you to use as a deposit to buy a property.

Lenders will, most of the times, confirm the source of a borrower’s deposit to make sure they are not borrowing the deposit off credit cards or a personal loan. In addition, your gift letter should be:
  • Dated.
  • Signed.
  • Contain the name of the person who signed the letter.
  • Contain the name of the person receiving the gift.
  • Confirm the gift amount.
  • Confirm that the gift is “unconditional, non-repayable and non-refundable”.
Most lenders will accept a faxed copy but some will require your mortgage broker to hold the original on file.

You can discuss your situation and loan needs with one of our mortgage brokers by calling us on 1300 889 743. You can also fill in our free online assessment form and one of us will contact you instead.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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