Gifting a deposit.
A mortgage lender will usually ask for proof of the source of a deposit.
It’s also now common for lenders to require anyone providing deposit monies to a child, relative or friend to sign a statement to say that this is a gift rather than a loan.
Mortgage lenders have to follow strict rules and loan affordability is key. If a borrower has borrowed the deposit as well in can affect lending limits
This isn’t ideal for a lot of people and a deed of trust can help clear up a lot of concern for the borrower and their family.
It is possible, for example, to adjust the beneficial ownership of the property between two legal owners, so that the gifted money benefits one more than the other.
It is also possible to agree to give the money back in certain circumstances in the future as long as this does not affect the legal title or mortgage.
Care must be taken not to breach any terms on which the mortgage is being made available.