Gifted Deposit NZ — Using a Family Gift for Your House Deposit

A gift from parents or family can form part or all of your house deposit in New Zealand. Gifted deposits are widely accepted by NZ banks — but there are specific documentation requirements and an important distinction between a gift and a loan that banks take seriously.

What Is a Gifted Deposit?

A gifted deposit is cash given to a borrower by a family member (or occasionally a friend) to contribute toward the deposit on a home purchase. The key characteristic: the money is a gift, not a loan — there is no expectation or obligation to repay it.

Banks in NZ accept gifted deposits as a component of the required deposit for a mortgage application.

Why Banks Care About Gifted Deposits

Banks assess your deposit for two reasons:

1. Security — A deposit demonstrates you have “skin in the game” and can absorb market value fluctuation without going into negative equity immediately.

2. Savings behaviour — The ability to accumulate a deposit is evidence of financial discipline and the capacity to manage ongoing mortgage repayments. A gifted deposit doesn’t demonstrate this — banks may treat fully gifted deposits with slightly more scrutiny than fully self-saved deposits.

This is why banks require documentation: to confirm the funds are genuinely gifted (not a secret loan that increases your effective debt), and to verify the gift source is legitimate.

What Banks Require

To accept a gifted deposit, most NZ banks require:

1. Statutory declaration from the donor A signed legal document confirming:

The amount gifted
That it is a gift and not a loan
That no repayment is expected or required
The relationship between the donor and the borrower

This must be signed in front of a solicitor or Justice of the Peace.

2. Donor’s bank statements Evidence that the donor has (or had) the funds — typically 3 months of bank statements showing the gift funds, or a statement confirming the sale of an asset that funded the gift.

3. Evidence of the transfer to the borrower A bank statement showing the funds received in the borrower’s account.

Note: Some banks have simplified this process — particularly for gifts from parents that are modest in size — and may accept a letter rather than a full statutory declaration. Check with your broker or lender what documentation they require for your specific situation.

The Gift vs Loan Distinction — Critical

If the money is actually a loan from family (i.e., you intend to repay it), this is not a gifted deposit — it’s a debt. Banks treat it as a liability in your financial assessment:

Scenario 1: Genuine gift

Family gives you $60,000
You have no obligation to repay
Bank treats it as equity → improves your deposit and LVR
Your effective liabilities are unchanged

Scenario 2: Disguised loan

Family gives you $60,000 with a verbal agreement to repay over 5 years
You sign a statutory declaration saying it’s a gift
Bank treats it as equity
Your actual debt is $60,000 higher than disclosed → this is mortgage fraud

Moral of scenario 2: Providing a false statutory declaration to a bank is fraud. Worse, if you’re repaying family $1,000/month, your actual monthly outgoings are higher than declared, and the bank may have lent you more than you can genuinely afford. If financial hardship follows, you’re exposed to serious legal consequences.

If your family does want to loan you money toward your deposit, be transparent with the bank. The loan is treated as a liability, reduces your borrowing capacity, and may still allow you to purchase — just at a lower loan amount. Some banks have structured family loan products designed for this purpose.

How Much Can Be Gifted?

There’s no legal maximum on how much can be gifted. Banks will accept:

A partial gift (topping up your savings to reach the required deposit)
A full gift (the entire deposit is gifted)

For a fully gifted deposit, banks may require slightly stronger evidence (more bank statements, potentially a conversation with the branch) to confirm the financial situation. The income/serviceability assessment remains entirely based on your own income — gifts don’t improve borrowing capacity.

Gifted Deposits and the First Home Loan

The Kāinga Ora First Home Loan allows gifted deposits — the 5% deposit can be a combination of KiwiSaver withdrawal, savings, and gifted funds. However, the 5% must genuinely be available at settlement; a promise of future gift doesn’t count.

Combining KiwiSaver + Gift

A common structure for first home buyers:

Source	Amount
KiwiSaver withdrawal	$35,000
Personal savings	$15,000
Gifted deposit (parents)	$20,000
Total deposit	$70,000

This 10% deposit on a $700,000 property is achievable for many first home buyers with family support.

See KiwiSaver First Home Withdrawal for the KiwiSaver component.

Tax Implications

A gift is not income for the recipient and is not deductible for the donor. There is no gift duty in New Zealand (it was abolished in 2011). There are no tax implications on either side for a straightforward cash gift within a family context.