Short answer: yes — in most cases, your parents can gift you money for your home deposit. But there are a few things you (and the bank) need to know before you go down that path.
Let’s break it all down simply.
1. How a gifted deposit works
A gifted deposit is when a parent (or close family member) gives you money to use towards buying your first home.
Banks will usually ask for two things:
- A gift letter confirming the money is not a loan
- A recent bank statement showing the funds in your account
Some lenders may want the money to sit in your account for a short period before they’ll count it as part of your deposit — this is called genuine savings, and every bank treats it differently.
For many first-home buyers, a gifted deposit can be the boost that gets them into the market sooner.
2. What about a family guarantor?
If your parents can’t give you money upfront, another option is a family guarantor loan.
This is where a parent uses a portion of the equity in their own home to support your loan. Instead of giving you cash, they act as additional security for the bank.
This can help you:
- Avoid Lenders Mortgage Insurance (LMI)
- Reduce the deposit you need
- Borrow more or get into the market sooner
Not every family wants to take this path, and it’s important to understand the responsibilities — but for many buyers, it’s an effective alternative to a cash gift.
3. Low-deposit options if your parents can’t help
If your family can’t gift money or go guarantor, you still have low-deposit pathways.
These include:
- Government Home Guarantee Scheme (5% deposit, no LMI) — Great for eligible first-home buyers with smaller savings.
- First Home Owner Grant (FHOG) — If you’re building a new home, this can go towards your upfront costs — and not all banks structure this well, but our brokers specialise in it.
- MWC $10k Deposit Boost™ — Our own contribution that helps fill the gap, allowing many buyers to enter the market with $5k–$15k saved.
Put together, these options help buyers where family assistance isn’t available.
4. So… can your parents gift you a deposit?
Absolutely — and it’s a common way buyers get into the market sooner.
But even if your parents can’t help financially, there are still pathways available. Between the government schemes, grant options, and our MWC $10k Deposit Boost™, many buyers get into a home with far less savings than they expected.
If you’re unsure which option is right for you, we can walk you through your situation and show you the pathway that fits best.
