Can I use money from my parents overseas for my home deposit?

What do lenders look for?

Lenders want to know that the money is really yours to keep. Most ask for a signed gift letter from the giver, confirming that the money is a gift and doesn't need to be repaid. Many also want to see where the money came from and how it reached your account.

Policies vary. Some lenders treat gifted money differently from money you've saved yourself, so check how your lender will count it before you rely on it for your deposit.

What documents help?

The ATO lists the kinds of records that support a genuine gift from a relative overseas. They're also the paper trail a lender will ask about:

• a signed gift letter or deed of gift from your parents, made at the time
• emails, letters or messages showing the payment was a gift
• identification for the giver, such as a copy of their passport or ID card
• your parents' bank statements showing they had the money and sent it
• the transfer records showing the money moving from their account to yours

The ATO says to keep more than one kind of evidence: a deed of gift on its own may not be enough.

How should the money be sent?

• Use a bank or a licensed money transfer business. You don't need to declare money that comes in through a bank or money transfer business, and the transfer creates a clear record.
• Avoid carrying cash. Anyone carrying $10,000 or more in cash or similar forms of money into or out of Australia must declare it. Splitting cash between people or trips to stay under $10,000 is called structuring, and it's illegal.
• Send it to an account in your name, so your bank statements show it arriving from your parents.
• Send it early. Money that has arrived and is documented before you apply makes the application simpler.

Check the rules where your parents live

Some countries limit how much money residents can send overseas, or ask for documents first. In Nepal, foreign exchange is regulated by Nepal Rastra Bank, the central bank, so ask your parents' bank in Nepal what's allowed and what paperwork it needs before they send anything. The same applies in India and other countries.

What about tax?

If the money is a genuine gift from a family member overseas, it isn't taxable income in Australia and you don't report it in your tax return. The ATO's three tests are that:

• you have enough documents to support it
• everyone's actions are consistent with it being a gift
• the money comes from funds genuinely independent of you

The ATO is watching for overseas income disguised as gifts. If the money is really your own income or investments from overseas, or it comes from a business or a trust, speak to a registered tax agent.

Can a gift count towards the 5% Deposit Scheme?

The scheme needs a deposit of at least 5%, and whether gifted money can make up some or all of it depends on the participating lender's policy. Ask before you apply. Our guide on how the 5% Deposit Scheme works in 2026 covers the rest of the rules.