Tips to Save for Your First House Deposit

A first-home deposit plan starts with a realistic purchase price, an affordable loan and the cash needed beyond the deposit.

Set a complete savings target

Ask a lender about borrowing capacity, its deposit requirements and lenders mortgage insurance. The deposit paid under the sale contract is a separate arrangement to confirm with your conveyancer. Add applicable transfer duty, legal work, inspections, moving costs and an emergency buffer.

A 5% deposit on a $500,000 purchase is $25,000. Saving that over 48 months requires about $521 a month before interest and purchase costs. Eligibility for a low-deposit loan or guarantee must be checked before relying on this example.

Make saving practical

Keep deposit savings separate from everyday spending, set regular transfers and review progress against your budget. Compare account access, fees and interest conditions, and retain enough accessible cash for emergencies.

Check current assistance

The former First Home Saver Account scheme was abolished in 2015. The First Home Super Saver scheme is a different, current program that can allow eligible voluntary super contributions to be used towards a first home. Check the ATO contribution, eligibility, determination and release requirements before contributing or signing a contract.

The Australian Government 5% Deposit Scheme and NSW first-home transfer-duty assistance have separate conditions. A grant or concession should only enter your budget once eligibility for the actual property and transaction is confirmed.