How to Save for a Home Deposit in Australia

Saving for a home deposit can feel like a big task — but with the right steps, it's more achievable than you think. Whether you're a first home buyer or planning an upgrade, a clear savings strategy is the key to getting into the property market sooner.

Here’s how to get started and stay on track.

How Much Do You Need for a Deposit?

In Australia, most lenders require a deposit of at least 5% to 20% of the property’s value. A larger deposit often means better loan terms and avoiding Lenders Mortgage Insurance (LMI).

Example:

• For a $600,000 home:
  • 5% deposit = $30,000
  • 20% deposit = $120,000

Keep in mind there are other upfront costs like stamp duty, legal fees, and inspections.

Step 1: Set a Clear Savings Goal

Start by working out how much you need and when you want to buy. Having a goal keeps you focused and motivated.

Things to include:

• Property price range
• Deposit percentage (5%, 10%, or 20%)
• Extra costs (approx. $10K–$20K)
• Your savings deadline

Break it down into weekly or monthly targets so you know exactly what to aim for.

Cosmopolitan, Parramatta | First Home Buyer Edition | Secure with $10k and $563 x 137 weeks

Step 2: Open a Dedicated Savings Account

Keep your deposit savings separate from your everyday money. Look for a high-interest savings account or offset account.

Features to look for:

• Bonus interest for regular deposits
• No monthly fees
• Easy online access
• Limited withdrawal options (to avoid spending)

This creates a clear boundary between spending money and saving money.

Step 3: Review Your Budget and Cut Back

Small changes can add up quickly. Go through your expenses and see what can be trimmed.

Easy savings tips:

• Cancel unused subscriptions
• Cook at home instead of eating out
• Shop smarter with price comparison apps
• Avoid impulse spending with a 24-hour rule

Every dollar saved moves you closer to your deposit.

Horizon Hurstville | First Home Buyer Edition | Secure with $10k and $401 x 57 weeks

Step 4: Automate Your Savings

Set up an automatic transfer to your deposit account every payday. This builds a saving habit without relying on willpower.

Tip:

Treat it like a bill — non-negotiable and consistent.

Step 5: Boost Your Income

Saving faster isn’t just about cutting costs — it’s also about increasing what you earn.

Ideas:

• Take on freelance or part-time work
• Sell unused items online
• Use cashback and rewards programs
• Ask for a pay review at work if you’re due

Extra income can fast-track your savings goal.

Auburn Square, North Village | First Home Buyer Edition | Secure with $10k and $391 x 110 weeks

Step 6: Explore First Home Buyer Schemes

If you're a first home buyer, there are government schemes that can help.

Options include:

• First Home Guarantee (FHBG) – buy with as little as 5% and no LMI
• First Home Super Saver Scheme (FHSSS) – use your super to save tax-effectively
• Stamp duty concessions – depending on your state

Check what you’re eligible for and factor it into your plan.

Step 7: Consider Buying Off the Plan with Coposit

Struggling to save a full deposit? Coposit offers a new way to buy property with smaller upfront costs.

How it works:

• Secure a property with as little as $10,000
• Pay the balance in weekly instalments during construction
• No interest while you pay
• Choose from quality off-the-plan developments

It’s a flexible, stress-free way to start your homeownership journey — without waiting years to save a huge deposit.

The Edmondson Collection | First Home Buyer Edition | Secure with $10k and $875 x 24 weeks

Smart Ways to Save for a House Deposit in Australia

• Set a savings goal with clear targets
• Cut costs and increase your income
• Use a dedicated high-interest savings account
• Automate deposits to stay consistent
• Explore first home buyer grants and incentives
• Use Coposit to buy sooner without the full upfront deposit