Do You Really Need to Show 3 Months of Savings? Not Always. Here’s What First Home Buyers Should Know

If you’re a first home buyer or re-entering the market after a few years, you’ve probably heard the old rule: you must show at least three months of savings to qualify for a home loan. But here’s the good news: that’s not always true anymore. Lending criteria have evolved, and many borrowers today are accessing loans without the traditional requirement of a savings history. Whether you're working with a Gold Coast Mortgage Broker, a Sunshine Coast Mortgage Broker, a Brisbane Mortgage Broker or a Mortgage Broker for Sole Traders, understanding how different lenders approach deposit requirements is key to moving forward sooner than you think.

The truth is, you don’t always need to be renting, and you don’t need to have your deposit sitting in your account for three months. Many lenders accept gifted deposits, often from parents or close relatives, who want to help their children take that first step into the property market. The flexibility around how a deposit is sourced means that you could be much closer to buying than you think.

How Gifted Deposits Work

A gifted deposit is money given to you by a parent or family member to be used as your home loan deposit, with no expectation that it will be paid back. Lenders require a statutory declaration or a signed letter confirming the funds are a non-repayable gift. In most cases, as long as the funds are transferred to your account before settlement, it’s treated as if you’d saved it yourself. This approach works exceptionally well for younger buyers who are still living at home, those who haven't rented before, or buyers who have only recently decided to enter the market. It removes the pressure of needing to “season” your funds over a lengthy period to tick a box