What is gifted deposit?
A gifted deposit is cash provided by a family member (usually parents) to help fund a property purchase — accepted by lenders with a written 'gift letter' confirming the funds are non-repayable, but doesn't count as genuine savings.
A gifted deposit is cash provided by a parent, grandparent, sibling or other immediate-family member to top up or fully fund a property deposit. The funds are non-repayable — the gift letter, signed by the donor, confirms there's no expectation of repayment. Without that letter the lender treats the funds as a hidden loan and refuses the application.
Gifts can fund the entire deposit, all stamp duty, settlement costs, and the LMI premium if needed. But gift funds do NOT count as 'genuine savings' — the borrower still needs 3+ months of saving history for the genuine-savings requirement.
Tax + estate implications: in Australia there's no gift tax, and the donor doesn't trigger CGT on a cash gift. However, the funds may affect the donor's Centrelink age pension assets test (under the deeming + gifting rules — gifts over $10,000/year or $30,000 over 5 years are still treated as donor's assets for 5 years).
gift deposit · parental deposit · family gift
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General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.