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A Guide To Saving For A House Deposit


While saving for a house deposit is arguably one of the hardest parts of getting into your first home, the good news is that there are plenty of hacks to do so. 

The process of saving for a house deposit sounds simple enough, right? Unfortunately, the cost of living in Australia certainly isn’t getting any cheaper, and neither is buying your first home. As house prices continue to rise, so too does the ideal 20% deposit that is required in order to get the all important pre-approval for a home loan. Thus, it can be all too easy to feel deflated if you’re facing a blowout on the timeline linked to saving for a house deposit.

However, there are plenty of ways to get creative when it comes to culling your expenses, increasing your income, and ultimately save like crazy in order to get into your first property. While not everyone is in the position to move back home with their parents, there are plenty of other tactics to deploy when it comes to hitting what is arguably one of the most common financial goals – so what are your options?

Ten Tips On Saving For A House Deposit 

Big ticket items like home ownership require discipline and long term planning, so it’s important to keep the end goal in mind when saving for a house deposit. While the prospect of saving anywhere between $50,000 and $120,000 can feel like a daunting pipe dream, if you’re able to knuckle down and get serious about your vision – it can be done. 

Start Saving And Set A Timeline – Be realistic with your saving goals, and start small if you have to – even $50 a week is better than nothing. Open an account that you can’t touch or transfer funds out of easily such as a term deposit, and watch your nest egg grow. Set goals with how much you want to save by, so that you’re accountable for the results.

Track Your Expenses – Are you one of those people that comes home from a Saturday night out on the town, only to find that you’ve spent $300 on dinner and drinks? Frivolous spending is public enemy number one when it comes to savings, so start identifying the differences between ‘need vs want’ by getting a good grasp on where your money actually goes.

Curb Your Spending – Saving for a house deposit doesn’t necessarily mean giving up life as you know it. Instead, try making some small but effective changes such as swapping out a boozy night out with friends in favour of a dinner party at home, or cancelling your gym membership and trying out hikes and walks in the great outdoors as an alternative. 

Smash Out Your Debt – Consolidating your debts is one of the most straightforward ways to get on top of existing loans or debts, and ultimately lowering the repayments you make based on interest rates alone. One credit card stashed for emergencies isn’t going to make or break your chances of a loan approval, but a large car loan or multiple miscellaneous debts might. 

Try Bill Smoothing – ‘Bill smoothing’ is a payment system offered by utility providers (electricity, gas, water) whereby you pay them fortnightly or monthly, instead of having to pay the whole bill in one go. The process can go a long way when it comes to eliminating large bills that put a dent in your finances, and help to keep them in check in the long term. 

The Art Of Negotiation – Australian culture makes us hesitant to barter or negotiate on both major and minor purchases when appropriate. However, once consumers shake the perceived norm of appearing ‘cheap’, negotiating on everything from a new car to your insurance premium can wind up saving you thousands each year if you’re brave enough to give it a try.   

Start Meal Prepping – Dining out and snacking is one of the biggest offenders when it comes to not following money saving tips, but it can be avoided with some preplanning. Start meal prepping at the beginning of every week by writing out a grocery list  and whip up tasty treats in advance. Not only will you reduce waste, but your bank account will thank you for it. 

Get A Side Hustle – While cutting down on your living expenses sometimes doesn’t leave much wriggle room for potential savings, increasing your income is an alternative that doesn’t necessarily suck all the fun out of your lifestyle. If you have a creative pursuit that can be turned into a side hustle – go for it. Even a few shifts a week as an Uber driver can go a long way. 

Consider A Term Deposit – Term deposits are considered to be a low-risk way to invest your money, and earn a fixed rate of interest. The concept is that they offer a higher interest rate than most traditional transaction and saving accounts. It can be a great alternative when looking for ways to grow your nest egg for big ticket purchases like home ownership. 

Look For Bonuses – Believe it or not, the federal and state governments of Australia want you to buy a house, as you’ll directly impact the economy in a positive manner. Consider state funding that may be available to you such as the First Home Owners Grant, or the First Home Loan Deposit Scheme – after all, they are in place to help you, and it all adds up.

One of the biggest savings myths that needs debunking is that one needs to earn serious dollars in order to afford putting some of it away for savings – and that just isn’t quite true. The path to property ownership often isn’t easy, but if you can learn how to save for a house deposit and stick to it – then it’s only a matter of time before you’re in your own home. 

Get The Right Advice The First Time 

With a background in banking, finance, business development and project management, there’s no better advocate to have on your team than Nikki Berzin. As a fully qualified mortgage broker and director of Cherry Lending & Finance, Nikki is passionate about all things finance, and empowering her clients with the tools to hit their property goals is what she does best – just one example of this is the free to use Savings Goal Calculator found on Cherry’s website. 

If you’re looking to get into your first home, purchase an investment property or even want to look at your options for refinancing, the first step is starting the conversation. Get in touch with Nikki today, or call her directly on 0427 374 155 to bring your mortgage dreams to life.

Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.  Subject to lenders terms and conditions, fees and charges and eligibility apply.