Saving for a Home Deposit – Your First Big Step

Saving for a home deposit is often the biggest hurdle for first-home buyers. The good news? With a clear target, a realistic plan and a few smart strategies, you can move from “one day” to “I’m ready” much faster than you think.

This guide walks you through how to set your deposit goal, build a savings plan that actually works, and use the incentives available to Australian first-home buyers.

1️⃣ Start With a Clear Deposit Target

You can’t hit a target you haven’t defined. The first step is understanding how much deposit you actually need for the type of property you’re aiming for.

Research price ranges in suburbs you’re interested in.
Use simple examples (e.g. 5%, 10% and 20% of $500,000).
Decide whether you’re aiming to avoid LMI or happy to use government guarantees.

Your deposit goal should feel stretching, but achievable within a timeframe that makes sense for you.

2️⃣ Know Your Numbers: Income, Expenses & Surplus

Before you can save properly, you need a clear picture of your current money flow.

List your after-tax income (wages, side income, benefits).
Track your spending for at least one full month.
Identify your genuine surplus (what’s left after essential bills).

This is the amount you can direct toward your deposit every week or month. Even small adjustments can add up quickly over 12–24 months.

3️⃣ Build a Realistic Savings Plan & Timeline

Once you know your surplus and your deposit target, you can create a simple plan.

Divide your deposit goal by how much you can save each month.
Set a target date (e.g. 18–36 months) and check if it feels realistic.
Break it into milestones (e.g. $5k, $10k, $20k) so you can see progress.

Your plan doesn’t have to be perfect. It just needs to be clear enough that you know whether you’re on track or drifting.

4️⃣ Automate Your Savings

Willpower is unreliable. Automation isn’t.

Set up an automatic transfer the day after payday into a dedicated “Home Deposit” account.
Treat it like a bill you always pay, not an optional extra.
Avoid linking a debit card to this account to reduce temptation.

When savings happen in the background, you’re less likely to spend first and hope there’s something left over later.

5️⃣ Trim the Right Expenses (Without Hating Life)

Cutting back doesn’t have to mean cutting out everything you enjoy. Focus on:

Subscriptions: Streaming, apps and memberships you rarely use.
Food: Fewer takeaway meals and more planned shops.
High-interest debt: Paying down credit cards or buy-now-pay-later first.

Every $100 a week redirected to your deposit is over $5,000 a year — plus interest.

6️⃣ Boost Your Income Where You Can

Saving faster isn’t only about cutting back — it can also be about earning more.

Ask about overtime or additional shifts if available.
Consider a side hustle that fits your skills and schedule.
Sell unused items (furniture, electronics, clothing) and add it straight to your deposit.

Every extra dollar you earn and save brings your timeline forward.

7️⃣ Make the Most of Government Incentives

Australian first-home buyers have access to several schemes that can reduce the deposit you need or help you grow it faster.

First Home Guarantee: Buy with as little as 5% deposit, no LMI.
Regional First Home Buyer Guarantee: Similar support for regional buyers.
Family Home Guarantee: For eligible single parents with a smaller deposit.
First Home Super Saver Scheme (FHSSS): Use voluntary super contributions to boost your deposit in a tax-effective way.

Using the right combination of schemes can shave years off your savings timeline.

8️⃣ Where Should You Keep Your Deposit Savings?

Parking your savings in the right place helps protect and grow your deposit.

High-interest savings account: Simple and flexible.
Offset account: If you already have or will soon have a loan.
FHSSS inside super: For eligible voluntary contributions.

Try to avoid mixing your deposit savings with everyday spending money — separation creates discipline.

9️⃣ Staying Motivated Over the Long Term

Saving for a deposit is a marathon, not a sprint. To stay motivated:

Track your progress each month and celebrate milestones.
Keep a vision of the home and lifestyle you’re working toward.
Check in periodically that your target still matches market prices.

Remember: many people who now own a home once thought it felt impossible too.

🔟 When to Talk to a Broker About Your Plan

You don’t have to wait until you’ve finished saving your deposit to get advice. In many cases, speaking to a broker early means:

Getting a clearer deposit target based on your income and borrowing power.
Checking your eligibility for grants and guarantees before you commit to a strategy.
Avoiding savings mistakes that could slow you down (or hurt your borrowing capacity).

Want a personalised deposit roadmap?

Book a free first home buyer session with the Loan Location team. We’ll help you work out how much deposit you need, how long it might take, and what support you may be eligible for.