Insights

How parental financial gifts are helping first home buyers

11 March 2026 · 5 min read

The average age of a first home buyer in Australia keeps rising. One quiet reason: deposit gaps have outpaced wage growth for a decade, and the gap now often gets bridged with family money.

Lenders are generally fine with gifted deposits. What they want is clarity — evidence that the funds are a genuine, non-refundable gift and not a loan. A statutory declaration from the parent stating the gift is non-repayable is the standard requirement.

Gift amounts vary, but the median parental gift for a first home deposit is around $70,000 — enough to cover the gap between a 10% and 20% deposit on an average Australian home. Gifts are commonly tax-free for both giver and recipient, but pension means-tests can be affected for retired parents.

If you're receiving help, keep the paper trail tidy. Direct bank transfer, not cash. A single lump sum rather than drip transfers. And ensure the statutory declaration is signed well before the loan application — retroactively documenting a gift raises red flags in lender reviews.

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