Back to top
Letter to Lender Confirming Gift or Loan Fill out the template

Letter to Lender Confirming Gift or Loan

Last revision
Last revision 14/03/2019
Formats
Formats Word and PDF
Size
Size 1 page
Fill out the template

About the template

Last revision: 14/03/2019

Size: 1 page

Available formats: Word and PDF

Fill out the template

How does it work?

1. Choose this template

Start by clicking on "Fill out the template"

1 / Choose this template

2. Complete the document

Answer a few questions and your document is created automatically.

2 / Complete the document

3. Save - Print

Your document is ready! You will receive it in Word and PDF formats. You will be able to modify it.

3 / Save - Print

Letter to Lender Confirming Gift or Loan

This Letter to Lender Confirming Gift or Loan can be used when one party (A) has provided money to another party (B), and B is also seeking a loan from a bank or other lender.

For example, it is often used when parents have given money to a child, to enable the child to purchase a house. The child may then go to a bank to seek a loan, and the bank may ask for confirmation of whether the money from the parents was a loan (which needs to be repaid in future) or a gift (which will not need to be repaid).

This letter can be used in either case (whether the money is a gift or a loan). It can also be used to provide further details about the money, for example any applicable interest rate (if it was a loan), and the purpose for which it was provided.

 

How to use this document

As with any legal documents, it is important to provide clear and accurate information when preparing this letter. Since a bank may rely on the information contained in this document to decide whether or not to provide a loan, there may be serious penalties if any misleading or deceptive information is provided to the bank or lender.

Once the document has been prepared and signed by the Sender, it may be provided to the bank or lender.

Both the Sender of the letter, and the person to whom they are providing money, may keep a copy of the document for reference.

 

Applicable law

There are no laws in particular that apply to a Letter to Lender Confirming Gift or Loan. However, the National Consumer Credit Protection Act 2009 (Cth), and in particular the National Credit Code, which appears in schedule 1 of that Act, deals with consumer credit in Australia.

Further information and guidance can also be obtained from the Australian Securities and Investments Commission ("ASIC") and from ASIC's Moneysmart website.

 

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

Fill out the template