By Steve Chin - June 2026 - 5 min read
The Bank of Mum and Dad is one of the biggest contributors to property deposits in Australia. With Adelaide's median house price continuing to rise, more families are helping their children into the market with a gift toward the deposit.
Lenders will accept this - but they need to confirm it is a genuine gift, not a hidden loan. The lender's concern is that a loan from family creates a repayment obligation that reduces your ability to service the mortgage.
Some lenders require you to demonstrate genuine savings - money you have saved yourself over time, typically 5% of the purchase price held for at least 3 months. A gifted deposit does not count as genuine savings at these lenders.
However, many lenders do not have this requirement, or they accept alternative evidence of your ability to save (such as a history of consistent rent payments). If your deposit is entirely gifted, Lendology will find a lender that accepts this without penalty.
Every lender handles gifted deposits slightly differently. Book a free chat and we will make sure the gift is structured in a way that your chosen lender will accept, and help prepare the documentation you need.
Yes, most lenders accept gifted deposits from immediate family members (parents, grandparents, siblings). The gift must be genuine - not a loan that needs to be repaid. The person giving the gift will need to sign a statutory declaration or gift letter confirming it is a non-repayable gift.
It depends on the lender. Some lenders require you to have saved at least 5% of the deposit yourself (known as genuine savings). Others accept 100% gifted deposits. If you have no genuine savings, Lendology can match you with a lender that accepts a fully gifted deposit.
The gift itself does not reduce your borrowing capacity - it is not a debt. However, if the lender requires genuine savings and you do not have them, you may need to meet additional criteria. Some lenders treat a gifted deposit differently to genuine savings when assessing risk.