How to build your home deposit faster (without losing your social life)
Because owning your first place should feel possible, not impossible.
Dreaming of ditching the rent trap and stepping into your own home? Saving for a deposit can feel like climbing Mount Everest, but with the right strategy (and a few savvy shortcuts), it’s more doable than you might think.
We work closely with first home buyers every day, helping them turn big goals into real results. Here are our top tips and tricks to help you build your deposit faster and smarter.
- Know your target deposit
The standard goal is 20% of your home’s value, but many lenders accept less. With as little as 5% (and sometimes even less with a guarantor), you can get started. The key is understanding what’s realistic for your situation and what support you’re eligible for. (Guess what? We can help with that.)
- Tap into first home buyer schemes
From the First Home Owner Grant (FHOG) to the First Home Guarantee, there are government incentives designed to ease your deposit burden. These can reduce how much you need upfront, or even eliminate the need for Lenders Mortgage Insurance (LMI). We’ll guide you through what you can claim and how to structure your application to maximise your benefits.
- Open a dedicated savings account
Keeping your deposit separate from your everyday spending helps you stay disciplined and watching it grow becomes seriously motivating. Look for high-interest savings accounts or offset accounts that reward you for regular deposits and no withdrawals.
- Automate your savings
Set up an automatic transfer the same day your pay hits your account. If it’s out of sight, it’s out of temptation. Even small amounts add up over time and consistency is key.
- Track your spending and cut back (strategically)
You don’t have to give up every brunch or holiday, but knowing where your money goes gives you power. Use a budgeting app, spreadsheet or our free budget tracker to know where your expenses are, then set clear weekly or monthly savings goals. Look for easy wins like cancelling unused subscriptions or negotiating better deals on utilities.
- Consider a side hustle or boosting income
Whether it’s weekend freelancing, tutoring, or selling unwanted items, any extra cash can speed things up. Put all side-hustle income directly into your deposit savings to supercharge your progress.
- Avoid new debt where possible
Lenders look at your overall financial position. Racking up credit card balances or personal loans can impact your borrowing power and slow your deposit progress. If you already have debt, speak to us we can help you create a plan to manage it effectively.
8. Get pre-approval so you know what you’re aiming for
It’s easier to save when you have a clear goal. We’ll help you crunch the numbers, get a pre-approval in place, and understand exactly what your savings target should be. That way, you’re not saving blindly, you’re saving with purpose.
Ready to make your move?
Saving your deposit is just one step and with the right team in your corner, it doesn’t have to be a struggle. We’ll walk you through your finance options, government grants, and lender choices, so you can stop renting and start building your future.
Let’s build your plan. Book a chat with Locale Financial today.
