Bright kitchen with timber shelving and a window splashback
Deposit and savings

How to save for a deposit

The deposit is only part of it. Plan for stamp duty and buying costs too, then see how long your savings will take.

Deposit timeline

Example figures. Change them.
Our rough allowance.
Stamp duty
Cash needed with 5%
Time to get there
Cash needed with 20%
Time to get there

Assumes first home buyer rates and no savings interest. Grants are left out because they are often paid late in the process.

Ways to get there faster

  • Pay yourself first. Move money to a separate savings account on payday, so it never sits in your spending account.
  • Build a record. Lenders often like to see regular saving over several months. A steady pattern can help as much as the balance.
  • Use the First Home Super Saver Scheme. Voluntary super contributions of up to $15,000 a year, and $50,000 in total per person, can be released for a first home. Check the ATO rules on timing, because they are strict.
  • Clear costly debt. Credit cards and car loans reduce how much you can borrow. Lenders count your card limit, even if you never use it.
  • Review your rent. A cheaper rental for a year can bring your purchase forward.
  • Ask about family help. Some lenders accept a family guarantee or a documented gift.

Do you need 20%?

No. The 5% Deposit Scheme lets eligible buyers start from 5% with no Lenders Mortgage Insurance. Help to Buy and, in WA, Keystart can work with 2%, with their own income and price limits. A smaller deposit means a larger loan and more interest, so compare the repayments as well.