🏠 Gifted Deposit for a Mortgage in Ireland: Can Parents Help With Your House Deposit?

Buying a home in Ireland can be difficult when you are trying to save a deposit while also paying rent and covering everyday living costs.

For many first-time buyers, help from parents or other family members can make buying a home possible sooner.

But an important question often follows:

Can I use a gifted deposit to get a mortgage in Ireland?

Yes. Irish mortgage lenders can accept a gift, provided the gift meets the lender’s requirements and the necessary documentation is supplied.

A gift is money given to you towards the purchase of your home that does not have to be repaid. The gift can come from parents, grandparents, siblings or, depending on the lender, another person.

However, there are two separate issues to understand:

1. Mortgage rules – will the lender accept the gifted deposit?
2. Tax rules – could Capital Acquisitions Tax (CAT) apply to the gift?

These are not the same thing.

A lender may accept a €50,000 gifted deposit, for example, while Revenue’s CAT rules may determine whether tax is payable on some or all of that gift.

In this guide, we explain how gifted deposits work, how much parents can give, the current Irish gift tax thresholds, the €3,000 annual Small Gift Exemption, what documents lenders usually require, whether you need your own savings, and how Park Financial can help with your mortgage application.

🔑 What Is a Gifted Deposit?

A gifted deposit is money given to a homebuyer to help them purchase a property.

The key point is that the money is a genuine gift and does not have to be repaid.

For example, imagine you are buying a home for:

€400,000

As a first-time buyer, you generally need a minimum 10% deposit under the Central Bank’s mortgage measures.

That would mean:

€400,000 × 10% = €40,000 deposit

If your parents give you €30,000 and you have saved €10,000 yourself, you could potentially have the €40,000 deposit required, subject to the lender accepting the arrangement and all other mortgage criteria being satisfied.

The Central Bank currently requires first-time buyers and second/subsequent buyers to have a minimum 10% deposit, while buy-to-let buyers generally require 30%.

The important distinction

A gifted deposit is not a loan.

If your parents expect you to repay the money, the lender may treat it differently from a genuine gift.

That is why lenders commonly require a signed declaration confirming that:

• The money is a genuine gift
• It does not have to be repaid
• The donor will not have an ownership interest in the property
• The donor will not have a beneficial interest in the property

👨‍👩‍👧 Can Parents Gift You a Deposit for a Mortgage in Ireland?

Yes. Parents are one of the most common sources of gifted deposits.

A parent can provide money towards their child’s house deposit, subject to the mortgage lender’s requirements and the relevant tax rules.

For example, parents could provide:

• €10,000
• €20,000
• €40,000
• €50,000
• Or potentially more

There is no universal mortgage rule that limits the size of a gifted deposit to €3,000.

The €3,000 figure relates to Revenue’s Small Gift Exemption, which is a tax rule rather than a mortgage deposit limit.

This distinction is extremely important.

A parent may be able to gift substantially more than €3,000, but the tax treatment of the gift needs to be considered separately.

💰 How Much Can My Parents Gift Me Tax-Free?

This is one of the most important questions when using a gifted deposit.

There are two different tax concepts to understand:

1. The lifetime CAT threshold

2. The €3,000 Small Gift Exemption

For a child receiving a gift from a parent, the current Group A CAT threshold is €400,000 for gifts and inheritances received on or after 2 October 2024.

This is a lifetime threshold, not an annual allowance.

In other words, you do not receive a fresh €400,000 allowance every year.

Previous taxable gifts and inheritances within the same CAT group can count towards the threshold.

📊 Irish Gift Tax Thresholds 2026

The current CAT group thresholds are:

These thresholds apply to the beneficiary based on their relationship with the person providing the gift. Revenue’s current guidance confirms that Group A is generally for children of the disponer, Group B includes siblings, grandchildren and certain other relatives, while Group C covers relationships outside Groups A and B, including friends.

Important: These are lifetime CAT thresholds and can be affected by previous gifts and inheritances received within the relevant group since 5 December 1991.

🎁 What Is the €3,000 Small Gift Exemption?

Ireland has a separate Small Gift Exemption.

You can receive up to:

€3,000 from each person, each calendar year

without that amount being subject to CAT.

The €3,000 exemption is per donor, not per family or household. It also does not use up the recipient’s lifetime CAT threshold.

Example: One parent

Your mother gives you:

€3,000

That gift can qualify for the Small Gift Exemption.

Example: Two parents

Your mother gives you:

€3,000

Your father gives you:

€3,000

Total:

€6,000

Both gifts can potentially qualify for the Small Gift Exemption because the €3,000 exemption applies separately to each donor.

Example: Four grandparents

If four grandparents each give you €3,000 in the same calendar year:

4 × €3,000 = €12,000

The €3,000 Small Gift Exemption can apply separately to each donor, subject to the rules.

The exemption is not limited to parents. Revenue states that an individual can receive a gift of up to €3,000 from any person in a calendar year, with the first €3,000 from each donor exempt from CAT.

⚠️ The €3,000 Exemption Is Not a €3,000 Deposit Limit

This is one of the biggest misunderstandings about gifted deposits.

The €3,000 Small Gift Exemption does not mean your parents can only give you €3,000 towards your house.

For example, your parents could potentially give you:

€40,000

The question is then whether that gift falls within your available CAT threshold and whether any CAT is payable.

The mortgage lender will separately assess whether it accepts the gifted funds as part of your deposit.

So:

Mortgage rules ≠ CAT rules

A mortgage broker can help with the mortgage side, but significant gifts can also have tax implications, so you should consider professional tax advice where appropriate.

🧮 How Does Gift Tax Work on a Large Deposit?

Capital Acquisitions Tax, commonly called CAT, currently applies at a rate of 33% to the taxable amount above the relevant threshold.

For example, suppose a child receives a €450,000 gift from a parent and has no previous benefits affecting their Group A threshold.

The current Group A threshold is:

€400,000

The amount above the threshold is:

€450,000 − €400,000 = €50,000

A simplified illustration of CAT on that excess would be:

€50,000 × 33% = €16,500

However, actual CAT calculations can depend on the individual’s previous gifts and inheritances, exemptions and other circumstances.

This is why you should not rely on a simple online calculation for a significant gift.

Revenue confirms that CAT depends on the value of the benefit, the relationship between the donor and beneficiary, and previous benefits received within the relevant group.

👨‍👩‍👧 Does Each Parent Have a €400,000 Threshold?

No.

This is another important distinction.

The €400,000 Group A threshold is not simply a separate €400,000 allowance from every parent.

The CAT system uses aggregation rules, meaning previous gifts and inheritances within the same group can be relevant when calculating the remaining threshold.

However, the €3,000 Small Gift Exemption is separate for each donor.

Therefore:

Parent 1 → €3,000 annual Small Gift Exemption

Parent 2 → €3,000 annual Small Gift Exemption

Potential combined annual Small Gift Exemption:

€6,000

That does not mean the child receives a €800,000 Group A lifetime threshold.

For significant gifts, always check the current Revenue rules or obtain professional tax advice.

👵 Can Grandparents Gift a House Deposit?

Yes, grandparents can potentially provide a gifted deposit.

However, the CAT treatment is different from a parent-to-child gift.

A grandparent-to-grandchild gift generally falls within Group B, which currently has a €40,000 lifetime threshold, subject to aggregation rules and the individual’s previous benefits.

The €3,000 Small Gift Exemption can also apply separately to gifts from individual grandparents.

For example, if a grandparent gives €20,000 towards a house deposit, the mortgage lender can assess whether the gift is acceptable while Revenue’s CAT rules determine the tax position.

👨‍👩‍👦 Can a Brother or Sister Gift Me a Deposit?

Potentially, yes.

A brother or sister is generally within Group B for CAT purposes.

The current Group B lifetime threshold is:

€40,000

subject to the applicable aggregation rules.

The lender may also have its own requirements regarding who can provide gifted deposit funds.

Therefore, if a sibling is providing a substantial amount towards your deposit, it is sensible to establish the lender’s requirements before transferring the money.

👨‍👩‍👧 Can an Aunt or Uncle Gift Me a Deposit?

Potentially.

The tax treatment depends on the exact relationship.

For example, Revenue states that a nephew or niece receiving a benefit from an uncle or aunt is generally Group B, with the current Group B threshold of €40,000.

However, the reverse relationship can be different.

For example, an aunt receiving a gift from a nephew may fall within Group C.

This is why it is important to look at who is receiving the gift and who is giving it, rather than simply saying that a particular family relationship always has the same threshold.

👫 Can a Friend Gift Me Money for a House Deposit?

Potentially, but the tax and mortgage treatment needs careful consideration.

A friend generally falls into Group C for CAT purposes.

The current Group C lifetime threshold is:

€20,000

subject to the relevant aggregation rules.

A lender may also subject a gifted deposit from a friend to additional scrutiny compared with a gift from a parent.

The lender may want to establish:

• Where the money came from
• Why it is being gifted
• That it does not have to be repaid
• That the friend has no interest in the property
• That the transaction satisfies its anti-money laundering requirements

If the gift is substantial, obtain appropriate tax advice before proceeding.

🏦 Will a Bank Accept a Gifted Deposit?

Many Irish lenders can accept gifted deposits, but the exact requirements can vary between lenders.

A gifted deposit generally needs to be a genuine gift rather than a loan.

The lender will typically want evidence that:

• The money is genuinely being gifted
• You do not have to repay it
• The donor will not acquire an interest in the property
• The source of the funds can be established
• The transaction meets the lender’s requirements

This is important because lenders have obligations around affordability, source of funds and anti-money laundering checks.

📄 What Documents Are Needed for a Gifted Deposit?

The exact requirements vary by lender, but you should expect to provide supporting documentation.

This may include:

• A signed gifted deposit declaration or gift letter
• Donor identification
• Proof of the donor’s address
• Evidence of the donor’s source of funds
• Bank statements
• Evidence of the transfer
• Applicant bank statements showing receipt of the gift
• Confirmation that the gift is non-refundable
• Confirmation that the donor has no interest in the property

For a gifted deposit, additional documentation may be requested by the particular lender.

✍️ What Is a Gift Letter?

A gift letter is a declaration from the person providing the money.

It normally confirms that:

• The donor is giving a specified amount
• The money is a genuine gift
• The money does not have to be repaid
• The donor will not acquire an interest in the property
• The donor understands that the lender is relying on the declaration

The exact wording and form can vary between lenders.

Do not assume that one generic gift letter will be accepted by every bank.

Your mortgage advisor can tell you what documentation is required by the lender being considered.

💶 Can a Gifted Deposit Be Part of the Deposit Rather Than All of It?

Yes.

You do not necessarily need your entire deposit to come from a gift.

For example, you could have:

€15,000 personal savings

plus:

€25,000 gifted deposit

Total:

€40,000 deposit

This could potentially form the 10% deposit on a €400,000 property, subject to the mortgage lender’s assessment.

In fact, demonstrating your own savings can also be useful because lenders assess your financial behaviour and repayment capacity.

Park Financial identifies secured income, repayment capacity, sufficient deposit and good credit history as key areas lenders consider when assessing mortgage applications.

💰 Do I Need My Own Savings If My Parents Give Me the Deposit?

Not necessarily.

A gifted deposit can potentially make up all or part of the required deposit.

However, individual lenders may have different requirements around savings and repayment capacity.

Having your own savings can also help demonstrate that you can manage your finances and prepare for the ongoing cost of owning a home.

This is where your repayment capacity becomes important.

Park Financial’s guide to Irish mortgage repayment capacity explains how lenders can assess savings, rent and financial commitments when considering affordability.

A gifted deposit solves one problem — having the required deposit — but it does not automatically prove that you can afford the mortgage repayments.

🏠 Can I Use a Gifted Deposit With a First-Time Buyer Mortgage?

Yes, a gifted deposit can potentially be used by a first-time buyer.

First-time buyers generally need a minimum 10% deposit under the Central Bank mortgage measures.

The deposit can potentially be made up of:

• Personal savings
• A genuine gift
• Certain qualifying government supports
• Other acceptable sources of funds

The lender will need to verify the source of the funds and ensure that the overall application meets its lending criteria.

🏡 Can I Combine a Gifted Deposit With Help to Buy?

Yes.

For eligible first-time buyers purchasing qualifying new-build properties or self-builds, the Help to Buy scheme can potentially contribute towards the purchase.

A gifted deposit and Help to Buy are separate sources of funds, so the important issue is whether you meet the relevant scheme rules and the mortgage lender’s requirements.

If you are relying on a combination of:

Savings + Gift + Help to Buy

make sure your mortgage adviser knows the full source of your deposit from the beginning.

🌍 Can Someone Living Abroad Gift Me a Deposit?

Yes.

For example, your parents may live in another country but want to help you buy a home in Ireland.

The lender may require additional evidence such as:

• Identification
• Proof of overseas address
• Bank statements
• Evidence of the source of funds
• Evidence of the transfer
• Additional anti-money laundering documentation

International transfers can also take longer to verify.

If your gifted deposit is coming from overseas, tell your mortgage adviser early in the process rather than waiting until you are close to drawdown.

🚫 Can My Parents Gift Me the Deposit and Still Own Part of the House?

This is different from  gifted deposit.

If your parents are providing money in exchange for an ownership interest in the property, the arrangement is no longer simply a straightforward gifted deposit.

A lender may require a different legal structure and could have specific requirements.

For a normal gifted deposit, the donor should generally confirm that they:

Do not expect repayment and will not have a legal or beneficial interest in the property.

⚠️ What If My Parents Expect Me to Pay Them Back?

Then it is not a gift.

This distinction is critical.

If your parents give you €30,000 but expect you to repay €500 per month, for example, the money is effectively a loan.

The lender needs to know about financial commitments that could affect your ability to repay the mortgage.

A genuine gifted deposit should not have an expectation of repayment.

📊 Does a Gifted Deposit Increase How Much I Can Borrow?

Not directly.

A gifted deposit can reduce the amount of your own money needed for the deposit, but it does not automatically increase your income-based mortgage limit.

The Central Bank currently sets a standard Loan-to-Income limit of:

4 × gross income for first-time buyers

and:

3.5 × gross income for second and subsequent buyers.

For example, a first-time buyer earning €80,000 could have a standard income-multiple calculation of:

€80,000 × 4 = €320,000

A €40,000 gifted deposit could potentially help fund a €360,000 purchase price, assuming the lender approves a €320,000 mortgage and all other criteria are met.

But the gifted deposit itself does not turn €320,000 of borrowing capacity into €360,000.

🧮 Use the Park Financial Mortgage Calculator

If you know approximately how much you have available for your deposit, you can use the Park Financial Mortgage Calculator to get an indication of potential monthly repayments.

You can experiment with:

• Mortgage amount
• Interest rate
• Mortgage term
• Monthly repayments

Park Financial makes clear that the calculator is indicative only and that the exact amount you may be able to borrow depends on a number of factors.

A gifted deposit can help with your upfront funds, but your income and repayment capacity still need to support the mortgage.

💶 Don’t Forget the Other Costs of Buying a Home

A gifted deposit does not mean that you should budget only for the deposit.

When buying a home in Ireland, you may also need money for:

• Stamp duty
• Solicitor’s fees
• Property valuation
• Survey
• Mortgage protection
• Home insurance
• Moving costs
• Other property-related expenses

Your deposit might be gifted, but you may still need your own funds to cover some of these costs.

For a detailed breakdown of the costs involved, read:

How Much Does It Really Cost to Buy a House in Ireland?

📋 Example: Parents Give €50,000 Towards a House Deposit

Let’s look at a simple example.

You are a first-time buyer purchasing a:

€400,000 home

Your minimum deposit under the standard Central Bank LTV rules would generally be:

€40,000

Your parents decide to gift you:

€50,000

You now have more than the standard 10% deposit requirement.

The lender will still assess:

• Your income
• Repayment capacity
• Employment
• Existing debts
• Credit history
• Property value
• Mortgage amount
• Source of the gifted funds
• Gift documentation

From a CAT perspective, the €50,000 gift also needs to be considered under the Revenue rules.

If you have not previously received relevant benefits and the gift is from your parents, the current Group A threshold is €400,000.

The €3,000 Small Gift Exemption may also be relevant.

The mortgage and tax assessments are separate.

⭐ How Park Financial Can Help With a Gifted Deposit

A gifted deposit can make a significant difference to your ability to buy a home, but the process can become complicated when you combine:

• Family gifts
• Your own savings
• Help to Buy
• Different sources of funds
• Recent employment changes
• Contract employment
• Variable income
• Existing debts

This is where a mortgage broker can be particularly useful.

Park Financial has been arranging mortgages since 1999 and states that its advisers understand the different circumstances that can affect Irish mortgage applications.

Park Financial also explains that brokers can be particularly useful for applicants with unique financial situations, because a broker can help identify lenders whose criteria may be more suitable for the circumstances.

This can be particularly relevant if your gifted deposit is not completely straightforward.

For example:

👨‍👩‍👧 Your parents are providing the entire deposit

Park Financial can help you understand the documentation that may be required and how the gifted funds fit into the overall application.

💰 You are combining savings and a gift

Your adviser can consider how your own savings and gifted funds fit together with your repayment capacity.

🌍 Your parents live abroad

Additional source-of-funds and identification documentation may be required.

🏠 You are using a gift alongside another scheme

Your adviser can help you understand how the different sources of funds fit into the mortgage application.

📄 You are unsure what the lender requires

Getting the documentation right at the beginning can help avoid unnecessary delays later.

Park Financial’s approach is to assess the applicant’s circumstances rather than simply looking at one element of the application. Its mortgage guidance identifies secured income, repayment capacity, sufficient deposit and good credit history as key considerations.

Visit Park Financial – Mortgage Broker Ireland

❓ Frequently Asked Questions About Gifted Deposits in Ireland

Can my parents give me money for a house deposit?

Yes. Parents can potentially provide a gifted deposit towards a property purchase in Ireland, subject to the lender’s requirements and applicable Revenue tax rules.

How much can my parents gift me for a house deposit?

There is no universal mortgage limit on the amount parents can gift. However, Revenue’s CAT rules apply to gifts, including the current €400,000 Group A lifetime threshold for a child receiving gifts from a parent, subject to aggregation rules.

Is a €3,000 gift tax-free in Ireland?

A gift of up to €3,000 from any one person to another person in a calendar year can qualify for the Small Gift Exemption. The exemption applies separately to each donor and does not reduce the recipient’s lifetime CAT threshold.

Can both parents give me €3,000 each?

Yes. The Small Gift Exemption applies separately to each donor. Therefore, two parents can potentially give their child €3,000 each in a calendar year, giving a combined €6,000 exemption.

Is the €400,000 parent-to-child allowance per parent?

No. The €400,000 Group A threshold is a lifetime CAT threshold and is subject to aggregation rules. It should not be treated as a separate €400,000 allowance from each parent.

Can my grandparents give me a gifted deposit?

Yes, potentially. A grandparent-to-grandchild gift generally falls into Group B, which currently has a €40,000 lifetime threshold, subject to the applicable rules.

Can my brother or sister give me money for my deposit?

Potentially. Gifts between siblings generally fall within Group B, which currently has a €40,000 lifetime threshold, subject to aggregation rules.

Can a friend give me money towards my house deposit?

Potentially, but a friend generally falls into Group C for CAT purposes, which currently has a €20,000 lifetime threshold.

Do I have to pay tax on a gifted deposit?

Not necessarily. The tax treatment depends on the amount of the gift, the relationship between donor and recipient, previous gifts or inheritances and applicable exemptions. CAT is currently charged at 33% on the taxable amount above the relevant threshold.

Do I need a gift letter for a mortgage?

A lender will commonly require a signed gift declaration or letter confirming that the money is a genuine, non-refundable gift and that the donor will have no interest in the property. The exact requirements vary between lenders.

Can a gifted deposit make up my entire deposit?

Yes. Some lenders may accept a fully gifted deposit, while others may place greater emphasis on evidence of personal savings. The lender’s criteria need to be checked.

Can I combine a gifted deposit with my own savings?

Yes.

Can I use Help to Buy with a gifted deposit?

Yes, if you qualify for the Help to Buy scheme.

Can my parents gift me money if they live abroad?

Yes. Additional identification, source-of-funds and transfer documentation may be required when the donor lives overseas.

Does a gifted deposit increase how much I can borrow?

No. Your mortgage borrowing capacity is primarily affected by income, the applicable mortgage measures, affordability and the lender’s criteria. A gifted deposit can reduce the amount of your own money needed for the deposit.

Will a bank accept a gifted deposit from a parent?

Many Irish lenders can accept genuine gifted deposits from parents, subject to their individual criteria and documentation requirements.

Can my parents have an interest in the property if they gift the deposit?

No.

Do I still need to show repayment capacity if my parents give me the deposit?

Yes. A gifted deposit addresses the deposit requirement but does not remove the need to demonstrate that you can afford the mortgage repayments.

For more information, read Park Financial’s guide to Irish mortgage repayment capacity.

Can Park Financial help with a gifted deposit mortgage?

Yes. Park Financial can help you understand the mortgage application process, the documentation required and how your gifted deposit fits into your overall application.

Speak to Park Financial about your mortgage

🏡 Ready to Use a Gifted Deposit to Buy Your Home?

A gifted deposit can make buying a home in Ireland much more achievable, particularly for first-time buyers who are struggling to build a 10% deposit while paying rent and other living costs.

The most important things to remember are:

A gifted deposit must be genuine.

The lender needs to be able to verify the source of the funds.

The donor cannot expect repayment or ownership of the property.

The €3,000 Small Gift Exemption applies separately to each donor each calendar year.

The current parent-to-child Group A CAT threshold is €400,000.

Different family relationships fall into different CAT groups.

CAT and mortgage lending rules are separate.

Your gifted deposit does not remove the need to demonstrate mortgage affordability and repayment capacity.

If you are unsure how your gifted deposit will affect your mortgage application, it is worth getting advice before transferring the funds or making an application.

Visit Park Financial – Mortgage Broker Ireland

You can also use the Park Financial Mortgage Calculator to get an indicative idea of your potential mortgage repayments.

Important: This article provides general information and is not tax or financial advice. CAT rules and mortgage lending criteria can change. For significant gifts or complex family circumstances, obtain appropriate professional tax/legal advice and confirm the current requirements with Revenue and your mortgage lender.