[rahimnathwani]

If it's a bona fide gift, the lender will consider it equivalent. If you claim that the deposit is a gift, they may request a letter from the person who gave you the gift to confirm there are no strings attached, i.e. that:

- it's non-returnable

- it's not interest-bearing

- no interest in the property will be retained by the person giving the gift

If they didn't do this, the gifting party could later claim that the gift was in fact a loan, and that it is secured on the property. This could cause complications for the lender, who is relying on a first charge on 100% of the property as security.