How gifted deposits work
A gifted deposit is money given (not lent) by family toward your deposit. It can take you to a higher deposit and a better rate band. Lenders accept gifts but need a simple gift declaration confirming it's not a loan and the giver has no stake in the property. The best mortgage is one from a lender comfortable with your gift source.
1. Mortgages accepting gifts from close family
Most lenders accept gifts from parents, grandparents and sometimes siblings. Best for buyers receiving a family gift — the widest choice. A signed gift letter is standard.
2. Mortgages accepting wider gift sources
Some lenders accept gifts from extended family or others, though criteria tighten. Best for those whose gift comes from a less common source — a broker will find an accepting lender.
3. Using a gift to reach a better rate band
A gift that lifts you from a 5% to a 10–15% deposit unlocks lower rates. Best for buyers wanting to cut their rate — even a modest gift can move you a band.
4. Combining a gift with schemes
A gifted deposit can be combined with first-time buyer or shared ownership schemes. Best for buyers stacking support to maximise affordability.
What lenders require
- A signed gift declaration confirming it's a gift, not a loan
- The giver has no financial stake or claim on the property
- Proof of the giver's identity and source of funds (anti-money-laundering)
- Sometimes the giver's bank statements
How to find the best mortgage with a gifted deposit
Lenders vary on acceptable gift sources, so a whole-of-market broker can match your gift to an accepting lender at the best rate. Find a mortgage broker through Nesto — free, no obligation.
Frequently asked questions
Can I use a gifted deposit for a mortgage?
Yes — most lenders accept gifts from close family with a signed gift declaration confirming it's not a loan.
Who can gift a deposit?
Usually parents and grandparents, sometimes siblings or wider family. Acceptable sources vary by lender.
What is a gift declaration?
A signed letter confirming the money is a gift, not a loan, and the giver has no stake or claim on the property.
Does a gift get me a better rate?
It can — by lifting you to a higher deposit and a lower rate band, even a modest gift can reduce your rate.
Will the giver need to provide documents?
Often yes — ID and proof of source of funds for anti-money-laundering checks, and sometimes bank statements.