6 Tips for Saving Your House Deposit

Amongst the excitement of planning for your first home, the amount needed to get your foot in the door can seem daunting. Saving for a house deposit remains one of the biggest hurdles to entering the property market for many South Australians. 

Here are our top 6 tips to help you tackle the deposit saving challenge and get closer to your dream of home ownership.

1. Do your research

Before you get started, gain a clear picture of your current situation and future goals.  

For example, it is recommended you consider the following: 

• Recent sales prices for the types of properties and suburbs you are interested in 
• Broadening your search to include suburbs outside of your preferred area, or different types of properties available, such as townhouses, apartments and off the plan products
• The must haves and nice to haves for your future home
• Any current savings you have as a starting point

2. Engage an expert

After some initial research, it is a good idea to meet with a mortgage broker to help you determine your borrowing power and the home loan products that might be suitable for you.   

Generally, aiming for a 20 per cent deposit can give you a greater range of home loan products, while saving you on Lenders Mortgage Insurance (LMI). However, there are other options available such as low deposit home loans. At Glenside, you only need to provide a 10% deposit when signing the contract, with the remaining 90% due at completion. This is a great advantage when purchasing off-the-plan apartments at Glenside.

Your broker can work with you to find the right solutions for your unique circumstances, explain how different loans work and their features, and support you throughout the process from application through to settlement.

3. Get a helping hand

To help you get started on your property journey sooner, you may be eligible for Government grants and incentives. If you're a first home buyer, you may be eligible for a range of Government grants and incentives that can significantly reduce your upfront costs. For example, when purchasing an off-the-plan property, such as a stylish apartment at Glenside, you could access the First Home Owner Grant of up to $15,000, along with potential stamp duty exemptions. These savings can make a real difference in turning your dream of home ownership into a reality.

We have put together a handy eBook especially for first home buyers with everything you need to know about financing your first home.

Our Glenside Sales Consultant is an expert in buying off the plan apartments and is available to answer any questions you may have about the process. Get in touch, here!

4. Set SMART goals

Research shows that having a specific goal to focus on increases our chances of success, and writing it down boosts our chances by more than 30 per cent*.  

When setting your money goals, it may help to follow the SMART goals theory – ensuring your goal is Specific, Measurable, Achievable, Relevant and Time-bound.  

To determine your SMART deposit savings goal, remember to factor in not only the home deposit but also the associated costs of purchasing a house, which may include stamp duty and moving costs. 

5. Get budget savvy

To boost your savings potential, review your budget and get ruthless. Look for anything that you may be able to cut from your budget, as even small changes can add up over time. 

Maybe you have six different streaming services you don’t need, a barely used gym membership, or can reduce your takeaway meals.  

Rather than looking at it as going without, remember the bigger picture. Budgeting will not only fast-track your deposit savings, it will also set you up to manage your home loan repayments and costs of home ownership in the future.  

6. Bring your bills down
Look for easy ways to reduce your bills, for example: 

• Buying on-special or bulk items at the grocery store.  
• Saving energy by turning off appliances when not in use and reducing your heating and air-conditioning use where possible. 
• Finding opportunities to reduce your car use, such as walking or cycling. 

Saving your home deposit is a big task but keeping focused and taking steps towards your goal are key to long-term success.  

Eager to research more about buying or building your first home? Download our handy First Home Buyer eBook which will help you understand what is next.

* Matthews, G. (2015). Goal Research Summary. Paper presented at the 9th Annual International Conference of the Psychology Research Unit of Athens Institute for Education and Research (ATINER), Athens, Greece.