A gift letter for your mortgage: what to write and the tax rules

Many first-time buyers get help from family with the deposit. Lenders accept it, with one condition: it must be a gift, not a loan. The giver signs a short letter saying so. This guide gives you a plain template, explains the gift tax rules, and says what to avoid.

Why the lender wants a letter

A lender lends against your ability to repay. If part of your deposit is a loan from a parent, you have two debts, not one. So the lender needs to know the money is yours to keep. The gift letter is that proof.

The lender also wants to know the giver will not claim a share of the home later. A parent who paid €40,000 towards a home could, in theory, say they own part of it. The letter rules that out, which protects the lender's security.

What the letter says

Keep it to one page. It should say:

• Who is giving the money and who is getting it.
• The amount.
• That it is a gift, with nothing to be repaid, ever.
• That the giver will have no interest in or share of the home.
• That the giver will not live in the home.
• The giver's signature and the date.

Some lenders have their own form. Ask before you write one. If the lender has no form, the template below is enough.

A template in plain words

Gift letter

To: [name of lender]

I, [giver's full name], of [giver's address], confirm that I am giving
€[amount] to [your full name] towards the purchase of a home at
[address, if known].

This money is a gift. It is not a loan. I do not expect it to be repaid,
now or in the future.

I will have no interest in, claim on or share of the home. I will not live
in the home.

Signed: ______________________   Date: ___________

Giver's phone: ___________

Print it, have the giver sign it by hand, and scan it. Some lenders also want the giver's bank statement showing the money leaving their account, so they can see where the gift came from.

A worked example

Lisa is buying her first home at €320,000. She needs a 10% deposit of €32,000. She has €20,000 saved. Her parents give her €15,000. They sign a gift letter. Lisa sends the letter, her savings statements and her parents' statement showing the €15,000 going out.

The lender counts €35,000 as her deposit. Her loan is €288,000, which is 90% of the price. The extra €3,000 goes towards the costs of buying. The gift is well under the €400,000 lifetime threshold, so no gift tax arises. The deposit savings calculator does this sum for your figures.

The gift tax rules

Ireland taxes gifts and inheritances under capital acquisitions tax, called CAT. You pay it only when the total gifts and inheritances from a group of people go over a lifetime threshold. The glossary has the acronyms.

The group A threshold of €400,000 was set in Budget 2025. Check Revenue's page for the current figure, because thresholds change on budget day. Every gift from a parent since 5 December 1991 counts towards the total. A €15,000 deposit gift is a small part of it.

On top of the thresholds, the small gift exemption lets anyone give you €3,000 a year tax-free. Two parents can give €3,000 each, which is €6,000 a year, without touching the threshold. That part needs no return to Revenue.

Where a gift uses more than 80% of a threshold, you must file a CAT return with Revenue, even if no tax is due. A solicitor (check the Law Society's register) or an accountant can help with the return. The conveyancing solicitor page explains what else the solicitor does.

Gifts from a partner or a friend

Lenders prefer gifts from close family. A gift from a friend or a partner who is not buying with you raises questions, and some lenders refuse it. For tax, a gift from a partner you are not married to falls in group C, where the threshold is the lowest. Ask the lender before you count on it.

What to avoid

• Calling a loan a gift. If the money has to go back, it is a loan. Telling the lender otherwise is a false statement. If the loan comes to light, the lender can withdraw the offer.
• A gift that the giver expects a share for. If a parent wants a stake in the home, that is a joint purchase. It needs a solicitor and a written agreement, and the lender must agree.
• Cash. A gift paid in notes cannot be traced. Lenders want to see the transfer on both statements.
• A late gift. The lender wants to see the money in your account, or at least the letter, when you apply. A gift that turns up a week before closing can delay drawdown.
• The giver living in the home. If a parent is paying for a home they will live in, the lender sees it as their purchase too.

A gift from abroad

A parent living abroad can give the money in the same way. The lender wants the same letter and the statement showing the transfer. Two extra things help: a note of the exchange rate used if the money came in another currency, and a copy of the giver's ID, because the solicitor's money-laundering checks reach the giver too. Allow extra days for an international transfer to land before the lender's deadline.

Keeping it clean for the solicitor

Your solicitor must check where your money came from under the anti-money-laundering rules. A signed gift letter and the giver's statement answer the question. Keep both. The solicitor asks for them again before closing. The documents checklist lists the rest.

Where this leaves you

Put your savings and the gift into the deposit savings calculator to see where that leaves the deposit and the costs on top. Use the template above, get it signed, and send it with your application. The first-time buyer journey shows the next steps, and get quotes finds a solicitor to check the gift and the tax.