Will your gift letter format be acceptable to the bank?

If you’re like one of many Australians, you may have asked your parents to gift you the money for your deposit.

With some lenders, a gifted deposit means you don’t need to prove genuine savings and essentially get into the property market with no deposit.

The trick to getting approved is using a gift letter template that the bank will accept as proof that the money from your parents is non-refundable.

Why might the bank need a gift letter?

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 need to confirm the source of a borrower’s deposit to make sure they are not borrowing the deposit off credit cards or a personal loan.

Some Australian lenders won’t lend to people who have received their deposit as a gift.

Please read our page about home loans with a gifted deposit for more information about the loan options available to you.

Gift letter template 1 – Standard

This is the gift letter template for a mortgage that’s accepted by most lenders.

If your lender has specifically asked for a statutory declaration then please use the 2nd template.


To Whom It May Concern:

Re: John Smith

I confirm that I am giving my son John Smith an unconditional gift of $50,000 for him to use to buy a property. This gift is not repayable or refundable.

Should you require any additional information please do not hesitate to contact me on 02 0000 0000.



Adam Smith
1 George St Sydney NSW 2000

If a Home Loan Experts mortgage broker is arranging your home loan, please email your signed letter through to them.

Which lenders will accept a gifted deposit? Call us on 1300 889 743 or enquire online to find out.

Gift letter template 2 – Statutory Declaration

Use this mortgage gift letter template if your lender has specifically asked for a statutory declaration.

Please note that some lenders such as Suncorp have their own statutory declaration template.

If you’re unsure what template to use, please call us on 1300 889 743 to discuss.

Statutory Declaration

I/We: Adam Smith

Of: 1 George St Sydney
in the State of New South Wales, do solemnly and sincerely declare as follows:

I will give my son John Smith a total of $50,000 to assist him to purchase a property. This gift is unconditional, non repayable and non refundable.

And I/we make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act, 1900 (as amended).

Subscribed and declared at Sydney NSW

This 1st day of January 2018


Adam Smith

Before me:


Name: (Name of JP)
Justice of the Peace #: 123456

If a Home Loan Experts mortgage broker is arranging your home loan, please email your signed letter through to them.

Please read our page about gift deposit home loans as only a select few lenders can accept this type of loan.

Gift letter template 3 – Family loan

In the event that the gift is repayable, this is assessed as a borrowed deposit by the banks.

If you get a loan from a family member to help you buy a property, only a select few banks will consider your application.

Please contact us if you’re having trouble finding a lender.


To Whom It May Concern:

Re: John Smith

I confirm that I am advancing a loan to my son John Smith to assist him in buying a property. The details of this loan are as follows:

  • Loan amount of $50,000
  • No interest is payable.
  • Repayments of $1,000 / month
  • The loan will be secured by a caveat behind the loan by ABC bank / The loan will be unsecured.

Should you require any additional information, please do not hesitate to contact me on 02 0000 0000.



Adam Smith
1 George St Sydney NSW 2000

If a Home Loan Experts mortgage broker is arranging your home loan, please email your signed letter through to them.

Which lenders will accept a gifted deposit? Call us on 1300 889 743 or complete our free assessment form.

Gift letter template 4 – Guarantor support

If your parents have decided to use a property they own as additional security for your loan then we may require a letter from them confirming that they are fully aware of what they’re doing.

This is particularly important if you’re consolidating debts while buying a property.

The letter must be signed by all guarantors.


To Whom It May Concern:

Re: John Smith

We are well aware of our son John’s financial position and believe he is now responsible enough to handle the commitment of buying a property. He has been paying his current debts on time and is never short of money so we are happy to help him refinance his debts into the new loan when buying a property.

Should you require any additional information, please do not hesitate to contact us on 02 0000 0000.



Tom & Jane Smith
1 George St Sydney NSW 2000

What catches people out?

Did you know that some banks have a policy which allows them to accept a gift as a deposit, yet their credit scoring system assesses these applications in a very harsh way.

As a result, many people get declined.

Secondly, some people are actually borrowing their deposit from their parents and intend to repay it later.

This is a loan, not a gift, and only a few lenders specialise in this kind of lending.

The key is to apply with a lender that sees people with a gift as a low risk borrower.

Bank requirements for gift letters

Australian lenders have strict requirements for letters confirming the source of a deposit and will often ask for a letter to be amended if it doesn’t meet their requirements.

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.

Which bank can approve your loan?

Our mortgage broker brokers are experts in no deposit home loans and we know which lenders can accept a gifted deposit in lieu of genuine savings.

Please call us on 1300 889 743 or complete our free assessment form to speak to one of our experienced staff.

  • Scarlett Williams

    Hi, I have submitted my application in NAB. For this, my uncle has deposited $20,000 in my savings account, can I show that as a gift from him and prepare a letter accordingly on the earlier date?

  • Hi Scarlett,

    If the 20,000 is an unconditional gift from your uncle, you can ask him to write a gift letter addressing to NAB.

    If NAB charges you a higher rate due to a small deposit or declines your loan due to a lack of genuine savings then let us know and we’ll compare other options for you.

  • KW Davies

    Aside from a gifted deposit and a gift letter, what other requirements will I need to meet to get a 95% home loan?

  • Hello KW Davies,

    To qualify for a 95% home loan, you’re also generally required to have a clean credit history, stable employment, good income, reasonable asset position, minimal debts and to be buying a standard property in a good location. Or you can simply enquire online to find out if you qualify:

  • Katey N

    Hello. I received a gifted deposit 5 months ago, and I can provide the letter to prove it if needed. I actually put it into my bank account immediately and didn’t use it at all. When I applied, the bank didn’t approve my application because they didn’t consider it to be genuine savings. Help!

  • Hey Katey N,

    There are people who have done this before – held a gift in their account for several months to have it counted as genuine savings. However, having it counted as genuine savings isn’t always this simple. While this can convince lenders that you’re good with your money, they may still question why your savings haven’t increased or why there was a large lump sum deposited into your account or simply not accept them as in your case.

    However, there may be no need to try to convince your lender because we know a few lenders that may be able to approve your loan anyway. The key is to apply with a lender that can accept your situation so please call 1300 889 743 if you want to discuss this with one of our credit specialists.

  • pierce

    Hi, what about using a personal loan as a deposit instead of this? How will that fare instead?

  • You can use a personal loan as your deposit but you’ll need to have a high income to be able to meet the serviceability requirements of both loans. Lenders will also want you to have little to no existing debt and a clean credit history. As this isn’t a suitable option for everyone, we recommend a guarantor or gifted deposit option before you consider this.

  • close

    How much can I borrow with a guarantor vs with a gifted deposit?

  • You may be able to borrow up to 95% with a gifted deposit but with a guarantor, you can borrow up to 105% of the property value. Please check out the no deposit home loans page if you’d like to learn in detail about these options:

  • Paul

    Yes Katey, you applied with a wrong lender. They all have different policies and even for a broker who deals with them every day is hard sometimes to remember all of their policies and niches.

  • Behzad abdollahi

    Hi I’m in Sweden and my dad wants to give us 15000$ as a gift towards a house deposit and I would like to now what kind of proof or letter I would need to be able to deposit the money in to my bank as I’m carrying with me from Sweden in cash to Australia melbourne

  • Hi Behzad
    Firstly please make sure you declare this at the airport as it’s a requirement for Australian customs. Also you may want to exchange the funds in Europe as Australian currency exchange providers and banks tends to have poor exchange rates.
    When buying a home we’d need to see the deposit in a bank account. That would be fine. However you may also need to meet genuine savings requirements depending on the lender that we apply with. There’s some more info here https://www.homeloanexperts.com.au/genuine-savings/no-genuine-savings-loans/

  • Imtiaz

    Can my friend give me a deposit as a gift to buy a house?

  • Hi Imtiaz,
    It’s mostly only the parents from whom the banks accept the gifted deposit or guarantee for your purchase. There are a few lenders who consider guarantees and gifted deposit from immediate family members such as siblings, grandparents, spouses, de facto partners or adult children.
    Friends, workmates or associates are not normally accepted because the banks want to ensure that the guarantor or the person gifting you a deposit (your friend, in this case) has a strong relationship with you.
    You could go through our guarantor page http://www.homeloanexperts.com.au/guarantor-home-loans/ for more info on this.