What is a deposit gift letter and do I need one?

Short answer: A letter proving family money is a gift, not a loan. Required by banks for deposit gifts.

What this actually means in plain English

If family gives you money for your deposit, the bank needs a letter proving it is a gift, not a loan. A gift does not need to be repaid. A loan would count as debt and reduce how much you can borrow. The letter must say the money is unconditional and does not need repayment.

Key Facts

Must state the money is a gift, not a loan
Must say no repayment is required
Should include giver relationship and amount
Bank may ask for proof giver can afford it

Example

Giver: Parent

Amount: $20,000

Statement: This is an unconditional gift. No repayment required.

Bank Requirement: Signed and dated by giver

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