Parents helping with your home deposit: is it a gift or a loan?
The practical question is whether you must pay the money back. Family support should be described accurately in your home loan application, not labelled a gift simply because that sounds easier.
Before the transfer, have a specific conversation: is this permanent help, a temporary advance, or support with conditions? A shared understanding matters more than a reassuring informal phrase such as ‘we will help you’.
Why the repayment arrangement matters
Aussie's gifted-deposit guide, checked on 12 October 2026, distinguishes non-repayable gifts from borrowed money. Repayable family funds should be disclosed as borrowed funds. Evidence and assessment requirements differ between lenders; family support does not guarantee home loan approval.
An example of an unclear conversation
Imagine a parent says ‘use this towards the house’, while the buyer understands a permanent gift and the parent expects repayment later. Before any application, resolve that difference. Do not sign a non-repayment declaration if it conflicts with the real arrangement. This scenario illustrates a communication problem, not a lender policy or legal determination.
Prepare the conversation and the paperwork
AGREE: write down the amount, who provides it and whether repayment or conditions apply. If repayment is expected, describe the intended timing and method accurately rather than leaving it out of the financial picture.
CHECK: ask the proposed lender or broker which declaration, source-of-funds evidence and transfer records are needed, and when funds must be available. Do not assume a standard letter or holding period works everywhere.
PROTECT: obtain separate legal advice for family loans, conditions or unclear expectations before signing documents. A broker discussion about lending requirements does not replace advice about family rights and obligations.
Connect the discussion to your first-home preparation
Bring the proposed family arrangement alongside your budget, existing commitments and purchase timeline. BV Finance can help organise lending preparation; the lender decides eligibility and the legal adviser addresses the family agreement.
Sources and practical tools
General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.
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