How to Create a Savings Plan for Your First Home

Buying your first home is one of the biggest financial steps you will ever take. For many Australians, the challenge lies in saving a deposit while managing everyday expenses. A clear savings plan can make the process easier and help you reach your goal faster. By combining smart budgeting with government incentives and new tools, you can turn your first home dream into reality.

Why You Need a Savings Plan

Saving for a home deposit requires discipline and structure. Without a plan, it is easy to overspend and delay your purchase. A savings plan ensures you set realistic goals, track your progress, and stay motivated along the way.

Setting a Deposit Goal

The first step is to determine how much you need to save. In Australia, most lenders require at least a 20% deposit to avoid lenders mortgage insurance (LMI). For example:

• Property price of $600,000 = $120,000 deposit
• Property price of $800,000 = $160,000 deposit

If 20% feels out of reach, some lenders accept a 10% or even 5% deposit, though this may mean paying LMI. The key is to calculate a goal that balances affordability with loan conditions.

Auburn Square | Off the plan Sydney | Buy in Auburn | Secure with $10k and $422 x 102 weeks

Creating a Realistic Budget

Once you have a target, create a budget that supports your savings plan. Track your income, rent, bills, and discretionary spending. Identify areas where you can cut back and redirect money into your savings account. Even small changes, like reducing dining out or subscriptions, can make a difference over time.

Budgeting Tips

• Use a high-interest savings account to grow your deposit faster
• Automate transfers into a dedicated savings account each payday
• Review expenses monthly and adjust as needed
• Set short-term milestones to stay motivated

Cosmopolitan, Parramatta | Off the plan Sydney | Buy in Parramatta | Secure with $10k and $493 x 129 weeks

Exploring Government Incentives

First home buyers in Australia may be eligible for several government schemes, such as:

• First Home Owner Grant (FHOG): A one-off payment to help with buying or building a new home
• First Home Guarantee: Allows eligible buyers to purchase with as little as 5% deposit without LMI
• Stamp Duty Concessions: Savings on upfront costs depending on the state or territory

These incentives can significantly reduce the amount you need to save.

Rhodes Bay | Off the plan Sydney | Buy in Rhodes | Secure with $10k and $720 x 107 weeks

Considering Off the Plan Opportunities

Buying off the plan can be a strategic choice for first home buyers. It allows you to secure a property at today’s price while paying the deposit in instalments during the construction period. This provides more time to save and may also deliver capital growth by settlement.

Danks St District | Off the plan Sydney | Buy in Waterloo | Secure with $20k and $1,077 x 72 weeks

How Coposit Makes Saving Easier

Coposit is designed to make home ownership more accessible. With Coposit, you can secure your first home with just a $10,000 deposit and then pay the remainder through manageable weekly instalments. This removes the pressure of saving a large lump sum upfront and helps buyers enter the market sooner.

Horizon Hurstville | Off the plan Sydney | Buy in Hurstville | Secure with $10k and $467 x 49 weeks

Building Long-Term Saving Habits

A savings plan for your first home is not just about reaching one goal. It also builds financial habits that will serve you for life. By budgeting, setting milestones, and using tools like Coposit, you will create a strong foundation for home ownership and long-term financial success.

226 Grange Avenue | Off the plan Sydney | Buy in Marsden Park | Secure with $10k and $962 x 52 weeks

First Home Savings Made Simple

Saving for your first home may feel overwhelming, but with a clear plan, government support, and innovative solutions, it is achievable. Focus on setting a realistic deposit goal, sticking to your budget, and exploring opportunities like off the plan purchases. With the right approach, your first home is closer than you think.