What does a gift letter need to say?

Non-refundable, no repayment expected, donor relationship, amount, signed/dated.

How long does gift money need to be in my account?

3 months in Australian account typical. Some accept shorter.

Are there tax implications on gift money?

Generally no tax for recipient. Donor may have implications. Confirm with accountant.

Can my parents in India gift deposit money?

Yes — Indian LRS allows $250K USD/year. AUSTRAC reports >$10K. Source docs needed.

How much can my parents gift?

No Australian limit. Overseas transfer caps may apply. Documentation required.

Home Loan Refinancing

Who this guide is for

Australians receiving deposit money as a gift from parents — both Australian-resident and overseas parents. Common in South Asian families.

FHBs whose Australian parents are gifting deposit
Buyers receiving gifts from overseas family
Indian families pooling deposit gift across generations
Buyers wanting to maximise deposit through family help

The local picture

Gift money is widely accepted but documentation matters. Lenders need a properly worded gift letter, evidence of source, and seasoning in your account. Many buyers don't prepare these in advance.

How Mortgagefy helps locally

Mortgagefy walks you through what lenders need: gift letter format, transfer documentation, seasoning periods. We work with gift-deposit applications regularly.

Free advice.

How it works — 4 simple steps

Free gift deposit chat

20-minute call about your situation.

Map documentation needs

We outline gift letter, transfer evidence, seasoning requirements.

Application support

We compile and submit your application end to end.

Settle into your home

You move in with parental gift secured.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Talk to us about parental gift deposits

Free 20-minute call with multilingual support.

Start Your Free Assessment Call 0432 634 648

Get your personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.

Using Parental Gift as Home Loan Deposit in Australia