Remittances — regular money transfers from family overseas to support a household in Australia — are extremely common in migrant communities. Lebanese, Indian, Filipino, Pakistani, Chinese, and many other communities regularly send or receive significant sums across borders.
The question for a home loan is: does this money count? The answer depends on whether you're trying to use it as income (to qualify for a larger loan) or as a deposit (to prove you have funds to settle). The rules are different for each.
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Using Remittances as Income (to Borrow More)
Most major banks will not count overseas remittances as assessable income for serviceability purposes. They view these transfers as informal, unverifiable, and potentially unreliable. This is the conservative mainstream position.
However, specialist and non-bank lenders — including some second-tier banks — may consider regular remittances as supplementary income if you can demonstrate:
- A consistent pattern of transfers over at least 12 months
- The sender is a close family member (parent, spouse overseas, sibling)
- The transfers are regular and of a consistent amount
- You can document the sender's financial capacity to continue
Using Remittances as a Deposit Source
This is where remittances are more broadly accepted. If your family has been sending money to your Australian account over time, and it has been sitting in your account for at least 3 months, most lenders will treat this as genuine savings — as long as you can document where it came from.
What Lenders Need to Accept Remittance Funds as Deposit
| Document | Requirement |
|---|---|
| Your Australian bank statements | Showing receipts of transfers over 3–6 months |
| Sender's bank statements | 3 months, showing transfers leaving their account |
| Statutory declaration (sender) | Stating funds are a non-repayable gift |
| Statutory declaration (you) | Confirming you are not required to repay the funds |
| Relationship evidence | Birth certificate, marriage certificate, or similar |
| Source of funds explanation | Where the sender's funds originated (employment, business, property) |
The "Gift Letter" Requirement
When family funds are used as a deposit, lenders almost universally require a "gift letter" — a statutory declaration confirming the funds are not repayable. The letter should state:
- The full name and relationship of the donor
- The amount gifted
- That there is no expectation of repayment, whether formal or informal
- That the donor has no interest in the property being purchased
The declaration should be signed in front of a Justice of the Peace or solicitor. Lenders may accept a letter in English signed by both parties — but a statutory declaration carries more weight.
What If Remittances Are Your Only Deposit Source?
Some buyers — particularly new arrivals who haven't had time to accumulate savings in Australia — have remittance funds as their entire or primary deposit source. This is more challenging but not impossible. Key requirements:
- The funds must be in your Australian account for 3+ months (genuine savings holding period)
- Full documentation chain as described above
- Work with a specialist broker — major banks will typically decline, but non-bank lenders can be workable
- Expect a higher deposit requirement (20%) if your income or savings history is limited
Remittances vs Foreign Income: Different Things
Remittances are different from foreign income. Foreign income is money you earned by working overseas. Remittances are transfers you received from someone else. Lenders treat these differently:
- Foreign income: Can sometimes count at 60–80% for serviceability — if you're still earning it and it's documented with payslips/tax returns
- Remittances received: Count as a deposit source (gift), not usually as income
- Remittances sent (if you send money overseas): Counted as a liability — it reduces your serviceability, as lenders see it as a committed expense
Frequently Asked Questions
our broker team works with multicultural buyers across South West Sydney and beyond, helping families who receive or send remittances navigate the mortgage process. Call 0432 634 648.
Related: Migrant Buyer Guides
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