Gifted Deposit Impact Calculator
See how a gifted deposit changes the loan, the loan-to-value band and the monthly payment, and what the gift saves over the whole term.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →A gift toward a deposit is usually valued at its face amount, and it is worth considerably more than that. It reduces the loan, and it frequently moves the buyer into a lower loan-to-value band where the rate itself is cheaper — so the same money buys both a smaller debt and a better price on it.
Seeing the whole-term saving is useful for the family member too, since it shows what the gift actually achieves rather than just what it costs.
The calculation
Two mortgages are priced over the same term: one without the gift at the higher loan-to-value rate, one with it at the lower band rate. The difference in payment across the full term is what the gift is worth.
Worked example
On a 300,000 property with 30,000 of your own savings, the loan is 270,000 at 90% loan-to-value and 6.6% — about 1,840 a month. A 30,000 gift takes the deposit to 60,000, the loan to 240,000 at 80% and 6%, and the payment to 1,546. That is 294 a month, or roughly 88,000 across a 25-year term, from a 30,000 gift.
Lenders need it documented as a gift
A signed letter confirming the money is a gift rather than a loan, that the giver retains no interest in the property, and identity and source-of-funds evidence for them are all standard requirements. Arrange it early — it is a common cause of late delay.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
Does the gift have to be a gift?
For most lenders yes. A loan from family creates a repayment commitment that affects affordability and may create a claim over the property, so lenders require written confirmation that no repayment is expected and no interest is retained.
What paperwork will the lender want?
A signed gift letter, identity documents for the giver, and evidence of where their money came from. Bank statements showing the funds and their source are usually required, so plan for it rather than treating it as a formality.
Are there tax implications?
They vary widely by country and can apply to the giver rather than the recipient, sometimes depending on how long they survive after the gift. This is worth checking with a local adviser before the money moves.