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.

Let’s Do the Numbers

Imagine you're looking to buy a home for $700,000. A 5% deposit equals $35,000. If you’re saving $500 a month, it would take nearly six years to reach that figure on your own. In the meantime, property prices continue to climb. With an average growth rate of around 8.5% per year, that $700,000 home could increase to over $1 million by the time you reach your savings goal, leaving you priced out altogether.

Even a short delay of three months to allow your deposit to “season” can have a financial impact. That same property could rise by $20,000 or more during that time, meaning your deposit target shifts upward, and the gap widens.

Why Lenders Are Becoming More Flexible

Lenders are increasingly evaluating the overall strength of your application rather than relying solely on rigid rules. If your income is stable, your credit score is healthy, and your gifted deposit is well-documented, many lenders are willing to accept that instead of a traditional savings trail.

Some lenders now prioritise other risk factors like your spending habits, existing debts, and employment history over whether or not you’ve slowly saved over three months. For many first home buyers, this shift opens doors that were previously thought to be closed.

What You’ll Need to Provide

To qualify with a gifted deposit, you’ll generally need to submit the following:

• A gift letter signed by the person giving the deposit

• Proof of funds being transferred to your account

• Your personal financial information, including payslips, bank statements, and credit report

• Evidence that you meet standard lending criteria (e.g., debt-to-income ratio, employment history, etc.)

The sooner you have this documentation ready, the faster your application can progress. In a competitive property market, speed can make a real difference.

What If You’re Part-Saving and Part-Gifting?

That’s fine. Many borrowers combine savings and gifted funds to make up their deposit. In some cases, even a small personal contribution, say 1% of the property value, can demonstrate to the lender that you’re financially committed, which strengthens your overall profile. This hybrid approach can also help you qualify for specific government schemes and grants that require a minimum level of genuine savings.

Don't Let Myths Hold You Back

The belief that you must show three months of savings history has discouraged many people from even trying to get a loan. But in reality, there’s a broad spectrum of lenders with different policies, and some of them are far more flexible than you might expect.

Rather than waiting and potentially missing out as property prices rise, it’s worth having your situation appropriately assessed now. You might discover that you're eligible today with no need to delay your dream for another three or six months.

The Opportunity Cost of Waiting

The real risk isn’t applying with a gifted deposit, it’s waiting too long and falling behind. Every month you delay, you’re not only missing out on equity gains but also potentially facing higher property prices and stricter lending conditions.

For many buyers, the difference between owning in 6 months versus 2 years comes down to acting on the information they didn’t know they had access to. If you've got support from your family and you’re financially stable, then chances are you're closer to home ownership than you think.

Final Thoughts

If you've been sitting on the sidelines, waiting until you've saved for three months to meet an old-school lending requirement, it’s time to reassess. Lending criteria have changed. Opportunities have opened up. For first-time home buyers with family support, there are more paths forward than ever before.

Instead of relying on outdated advice, find someone familiar with the current lending landscape who can guide you through the options that best suit your situation.

You don’t always need a three-month paper trail. You need the right strategy and the confidence to act on it.