Saving for a home deposit in Australia can feel overwhelming, especially with rising house prices and living expenses. But with some planning and discipline, you can reach your savings goal faster than you think.
Whether you're a first home buyer, an investor, or planning your next move, these 7 strategies will help you save smarter and build your deposit with confidence.
- Set a realistic savings goal
Start by understanding how much deposit you need. In Australia, most lenders require a 20% deposit of the property’s value.
Use online tools like a home loan deposit calculator to estimate what you’ll need for your ideal suburb and property type.
- Create a dedicated budget
Take a close look at your income and expenses. Track every dollar to identify spending leaks. Redirect money from non-essentials (like subscriptions or eating out) toward your home deposit savings account.
Use apps like Frollo to stay on top of your budget.
- Open a high-interest savings account
Keep your deposit funds separate from everyday spending. Look for high-interest savings accounts or term deposits with bonus interest for regular deposits and no withdrawals.
Some banks offer first home saver accounts with extra perks for eligible buyers.
Macquarie and Bank of Queensland currently have some of the highest interest savings accounts.
- Take advantage of government incentives
If you’re a first home buyer, you may be eligible for schemes that ease the deposit burden, such as:
- First Home Guarantee (5% deposit, no LMI)
- First Home Super Saver Scheme (save through your super and withdraw later)
- State-based grants like the First Home Owner Grant (FHOG)
These programs can cut years off your savings journey.
For more information visit the SRO website. You can also read more about Government grants in our previous blog Understanding Government Grants and incentives when buying a property in Victoria.
- Eliminate or reduce debt
High-interest debt like credit cards or personal loans can slow your progress. Aim to pay these off before or during your savings plan.
Lenders also assess your debt-to-income ratio, so reducing your liabilities can improve your borrowing power.
- Consider a guarantor or co-buying
If saving a full deposit isn’t realistic in the short term, options like a guarantor home loan (often from parents) or co-buying with a friend or partner can help get you into the market faster.
Just be aware of the legal and financial implications - get professional advice before signing anything.
- Cut back on rent or live rent-free
Rent is often the biggest obstacle to saving. Consider:
- Moving back in with family temporarily
- House-sitting
- Getting a roommate to split costs
- Downsizing to a cheaper rental
Even saving an extra $100 a week adds up to $5,200 a year.
Final thoughts
Saving for a deposit isn’t easy - but it’s possible with a solid plan, smart money habits, and the right tools. Start today, and your dream of home ownership could be closer than you think.
If you're ready to take the next step or explore your eligibility for first home buyer grants, get in touch with a mortgage broker or read our previous blog Top tips for buying your first home in Victoria.
Ready to Take the Next Step? Enquire on Victorian Cedar Woods estate here.
Disclaimer: Cedar Woods gives no warranty concerning the accuracy of the material or information displayed in this blog. Prospective buyers should make their own enquiries and rely on their own investigations and independent advice. All information in this blog is subject to Terms of Use accessible at www.cedarwoods.com.au/Terms-of-Use.
