Gifting Declarations
Download a Gifting Declaration (Gift only) here.
Download a Gifting Declaration (Loan) here.
In many lending scenarios, clients receive financial assistance from family or friends toward the purchase of their home. When this happens, lenders typically require formal written confirmation of the nature of the funds — specifically, whether they are a gift or a loan. The following two templates support advisers and clients in supplying this confirmation.
Gifting Declaration – Gift Template
What is this letter?
The Gifting Declaration (Gift Template) confirms that the funds provided to the applicant are a non-repayable gift. It explicitly states that the funds:
Are not a loan,
Are not subject to interest,
Will not be registered as a charge or encumbrance on the property.
This document assures the lender that the funds are genuinely a gift and will not affect the applicant’s ability to service their loan.
When should advisers use this?
Use this template when:
The client is receiving a gifted contribution from a parent, family member, or other party,
The funds are not expected to be repaid,
The lender requires formal documentation of the gift.
Key Requirements:
The person(s) gifting the money must complete, sign, and date the letter.
The completed letter should accompany the application or be submitted when requested by the lender.
Gifting Declaration – Loan Template
What is this letter?
The Gifting Declaration (Loan Template) confirms that the funds provided are technically a loan, but with special terms:
The loan is non-interest bearing,
It will not be registered on the property title,
Repayment will not be demanded until or after the property is sold.
This form satisfies lenders that the financial contribution is not an immediate financial burden on the borrower but must still be acknowledged as a liability.
When should advisers use this?
Use this template when:
The funds provided are technically a loan from parents or other parties,
The lender allows this type of informal loan, provided it is clearly disclosed,
There is no formal loan agreement, but repayment is expected at a future point (usually when the property is sold).
Key Requirements:
Both parties (those lending the money) must complete the names, amount, and beneficiary details.
Each lender must sign and date the declaration.
Summary: Which Template to Use?
| Scenario | Use the Gift Template | Use the Loan Template |
|---|---|---|
| Money will not be repaid | Yes | No |
| Money will be repaid after sale of house | No | Yes |
| Lender requires written confirmation of relationship and funds | Yes | Yes |
Advisers should confirm with the lender which template is acceptable in each case, as requirements vary across institutions.
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