Saving for a house deposit in Australia feels like chasing a number that keeps moving. And for most people, it is. National median house prices sit above $1 million, the average first home buyer deposit is around $135,000, and a single person saving 20% of their after-tax income would need roughly 10 to 12 years to reach a 20% deposit at today's prices.
But here is the thing most savings guides won't tell you: the target matters less than the structure. How you save, where you save, and what your bank statements look like when you hand them to a lender are often more important than hitting a perfect round number. A buyer with $65,000 in well-structured savings and the right scheme eligibility can be closer to settlement than a buyer with $100,000 in a messy account and no plan.
This guide covers the practical side. Not generic budgeting tips. Actual strategies, tax advantages, government schemes and the savings pattern lenders are looking for when they decide whether to approve you.
If you already have a workable deposit and want to compare loan pathways, head to our first home buyer loans page or use the form below to speak with a specialist.
How much deposit do you actually need?
The short answer: it depends on the property price, your state and the pathway you use. But there are three common deposit levels, and each one changes the economics of buying.
What these numbers look like in real dollars
The deposit percentage is abstract until you put dollar signs on it. Here is what the three deposit levels look like across different purchase prices.
| Purchase price | 5% deposit | 10% deposit | 20% deposit |
|---|---|---|---|
| $500,000 | $25,000 | $50,000 | $100,000 |
| $650,000 | $32,500 | $65,000 | $130,000 |
| $800,000 | $40,000 | $80,000 | $160,000 |
| $1,000,000 | $50,000 | $100,000 | $200,000 |
Deposit only. You also need to budget for stamp duty, legal fees, inspections, insurance and moving costs on top of these amounts. See our first home buyer guide for a full cost breakdown.
Here is the number that catches people off guard: a buyer targeting a $700,000 property with 10% deposit does not need $70,000. They need roughly $78,000 or more once buying costs are factored in. The deposit and the costs come out of the same savings pot, and too many buyers forget that until it's time to settle.
A savings plan that actually works
Most deposit savings plans fail because they treat saving as a willpower exercise. It isn't. It's a structure problem. The buyers who build deposits fastest are the ones who automate the process, remove decision-making from the equation and make saving the default, not the leftover.
How much should you save per week?
This depends entirely on your target and timeline. But here are some reference points to make the maths concrete.
To save $70,000 in three years, you need roughly $450 per week. To save it in five years, around $270 per week. For a couple saving together, those numbers halve. And if you're using the FHSS scheme on top, the tax saving puts you further ahead without increasing what leaves your bank account.
The point is not the exact number. It's that saving for a deposit is a maths problem with a known answer. Once you set the weekly amount and automate it, the rest is patience.
The FHSS scheme: the biggest tax advantage most buyers miss
The First Home Super Saver Scheme is the single most powerful savings tool available to Australian first home buyers, and most people either don't know about it or don't use it properly. Here is how it works in plain terms.
Instead of saving your deposit in a bank account using money you've already paid full income tax on, you salary sacrifice into super where contributions are taxed at just 15%. For someone on a $90,000 salary paying a marginal tax rate of 32.5% (plus Medicare), that's a significant gap. Every $1,000 you route through the FHSS instead of your bank account keeps roughly $175 more in your pocket.
Saving in a bank account
- Income taxed at your marginal rate (up to 45% plus Medicare)
- Interest earned is taxed at your marginal rate too
- No government-backed savings structure
- Full flexibility to access funds at any time
Salary sacrificing into super
- Contributions taxed at 15% inside super
- Deemed earnings calculated by the ATO and added to your withdrawal
- Up to $15,000 per year, $50,000 lifetime per person
- Funds locked until you request a determination from the ATO
FHSS rules you need to know
Up to $15,000 in eligible voluntary contributions per financial year, and a lifetime maximum of $50,000 per person. These contributions count toward your overall $30,000 concessional contributions cap for 2025-26, which also includes employer super guarantee payments.
Each person can access their own $50,000 cap independently. A couple can withdraw up to $100,000 combined toward a joint deposit. Both partners must meet eligibility individually. You don't need to be married or in a de facto relationship.
You must be 18 or over, never have owned property in Australia (including investment, commercial or vacant land), and intend to live in the property you buy. You can only use the FHSS once. Some financial hardship exceptions may apply through the ATO.
Request an FHSS determination through ATO online services (via myGov) to find out your maximum releasable amount. Then lodge a release request when you're ready to buy. Processing typically takes 4 to 6 weeks. You must sign a contract within 12 months of receiving the funds.
When you withdraw, the amount is added to your assessable income but taxed at a 30% offset rate. In practice, most people pay less tax on withdrawal than they would have paid if the money had been saved outside super. The exact benefit depends on your marginal rate.
Your FHSS contributions count toward the $30,000 concessional cap for 2025-26 alongside employer super guarantee (now 12%). On a $90,000 salary, your employer is already contributing $10,800, leaving $19,200 of headroom. Don't accidentally exceed the cap, because excess contributions are taxed heavily.
The FHSS is not complicated once you set it up. The hard part is knowing it exists and starting early enough for it to make a real difference. If you are two or three years away from buying, this is the single biggest thing you can do right now.
Savings strategies that actually move the needle
Skip the advice about cancelling your Netflix subscription. That saves $22 a month. Your rent, car and food spending are where the real money is. Here are the strategies that make a measurable difference.
Move home or share housing costs
Rent is the biggest line item for most deposit savers. Moving back with family, even temporarily, can save $25,000 or more per year compared to renting solo. Sharing a rental with a partner or housemate also cuts the cost substantially. It's not glamorous. It works.
Kill the car loan
A car loan with $400 a month in repayments is $4,800 a year you could redirect to your deposit. And it's worse than that, because lenders count car finance against your borrowing capacity too. Selling the car and using public transport or buying a cheap runabout outright does double duty: more savings, more borrowing power.
Bank every pay rise and bonus
When your income goes up, your savings rate should go up by the same amount. Don't let lifestyle inflation absorb the increase. Redirect pay rises, tax refunds, bonuses and any windfall income straight to your deposit account before you have a chance to spend it on something else.
Pick up a side income
Extra shifts, freelance work, selling things you don't need, renting out a spare room. Every dollar of side income that goes directly to your deposit fund accelerates the timeline. Even $200 a week extra is over $10,000 a year. That's meaningful over a two to three year savings plan.
Audit subscriptions and recurring costs
Not the $15 streaming services. The $80 gym membership you use twice a month, the $200 phone plan you could halve, the insurance policies you haven't compared in three years. Recurring costs add up quietly. One afternoon of phone calls and cancellations can free up $200 to $400 a month.
Use a high-interest savings account
Some Australian savings accounts offer bonus interest rates above 5% for regular monthly deposits and no withdrawals. That won't make you rich, but on a $60,000 balance it adds $3,000 a year. Free money for doing what you're already doing. Compare accounts and make sure your deposit fund is earning the best available rate.
What lenders want to see in your savings
Your deposit amount is only half the story. The way you saved it matters too. Lenders look at your savings pattern as a signal of financial discipline, and a messy savings history can slow down or derail an application even when you have enough money.
Most lenders define genuine savings as funds you have accumulated over at least three months through regular deposits from your own income. Rental bond refunds, tax refunds held for three months and shares or managed funds held for three months may also qualify. Lender definitions vary.
Regular, consistent deposits matter more than large irregular lumps. A buyer who saves $500 every fortnight for six months presents better than someone who dumps $15,000 in a single transfer two weeks before applying. The pattern is the point.
Lenders review your bank statements in detail. Unexplained large deposits, frequent gambling transactions, dishonour fees and erratic spending patterns all raise questions. Your statements should tell a simple story: money comes in, regular savings go out, spending is controlled.
Most lenders accept gifted funds from family, but you'll typically need a signed statutory declaration or gift letter confirming the money is a genuine gift, not a loan. Some lenders also require a minimum amount of your own genuine savings on top. Don't assume a gift alone is enough.
FHSS funds are treated as genuine savings by most lenders. The ATO provides documentation of the release which you can present as part of your deposit evidence. This is one of the cleaner deposit sources from a lender's perspective.
Avoid unexplained cash deposits, moving money between accounts just before applying, borrowing from friends or family without documentation, and using buy now pay later facilities during your savings period. All of these create questions lenders would rather not have to ask.
Common deposit savings mistakes
Most of these mistakes don't feel like mistakes while you're making them. They feel like reasonable decisions. But they cost time, money or both.
Not knowing the real number
Saving without a specific target is like driving without a destination. Too many buyers aim for a vague "around $80,000" without factoring in stamp duty, legal fees, inspections and moving costs. They hit their savings goal and then discover they're $10,000 short of what settlement actually requires.
Work out deposit plus all buying costs before you start saving.
Waiting too long to check borrowing capacity
You can save for years and then discover that your borrowing capacity doesn't support the purchase price you were targeting. Or that a credit card you forgot about is dragging your numbers down. Check your borrowing capacity early so your savings target matches what a lender will actually approve.
Get a borrowing capacity check while you're still saving, not after.
Ignoring the FHSS scheme
The FHSS gives you a direct tax advantage on every dollar you contribute. Ignoring it because it sounds complicated, or because you didn't know it existed, can cost you thousands over a two to three year savings period. It takes one phone call to your payroll team to set up salary sacrifice.
Set up FHSS contributions as early as possible. The longer you wait, the less you benefit.
Taking on new debt during the savings period
A new car loan, a buy now pay later account, or a credit card application while you're saving for a deposit doesn't just slow down your savings. It directly reduces your borrowing capacity. Lenders count every debt, including unused credit card limits, against what they'll lend you.
Avoid new debts and credit applications while saving. Close unused credit cards.
Dipping into the deposit fund
Every time you raid the deposit account for a holiday, a car repair or a "just this once" purchase, you reset the clock. Worse, you break the consistent savings pattern that lenders want to see. Keep an emergency buffer in a separate account so you never have to touch deposit money.
Keep deposit savings and emergency funds in completely separate accounts.
Saving the deposit but forgetting scheme eligibility
Government schemes have property price caps, state-based rules and lender participation requirements. A buyer who saves enough for a 5% deposit and then finds a property above the HGS cap has to start rethinking. Check scheme rules early so your savings target and property expectations line up.
Check scheme price caps and eligibility before setting your property target.
Government help that reduces what you need to save
Several government programs can lower the deposit barrier, cut upfront costs or give you a tax-advantaged savings path. None of them guarantee loan approval, but they can meaningfully reduce the total cash you need to get to settlement.
Home Guarantee Scheme (HGS)
The big one. From 1 October 2025, eligible first home buyers can purchase with just a 5% deposit and avoid LMI entirely. There are no longer any annual place limits or income caps. Property price caps vary by location (for example, $1,500,000 in Sydney, $950,000 in Melbourne, $1,000,000 in Brisbane). You still need full lender approval.
Housing Australia: First Home GuaranteeFirst Home Super Saver Scheme (FHSS)
Salary sacrifice into super at 15% tax, then withdraw up to $50,000 (plus deemed earnings) toward your deposit. Couples can access $100,000 combined. The tax saving alone can be worth thousands over a two to three year savings period. Detailed in the FHSS section above.
ATO: FHSS SchemeFirst Home Owner Grant (FHOG)
A one-off state or territory grant for buyers of new homes or new builds. Amounts and thresholds vary: $10,000 in NSW for new homes up to $600,000, up to $10,000 in VIC for new homes in metro areas, $30,000 in QLD for new homes up to $750,000. Check your state revenue office for current rules.
SRO Victoria: FHOGStamp duty concessions
Most states offer stamp duty reductions or exemptions for eligible first home buyers. In NSW, full exemption applies on properties up to $800,000 with a sliding concession to $999,999. In VIC, exemption on new and established homes up to $600,000 with a concession to $749,999. This can save $10,000 to $30,000 or more depending on the property price and state.
Revenue NSW: FHB Assistance SchemeGuarantor home loans
A family member providing limited security support can help you avoid LMI without a government scheme. The guarantor uses equity in their own property rather than giving you cash. These structures are lender-specific and both parties need independent legal and financial advice.
PFH guarantor home loansImportant: schemes don't replace loan approval
Qualifying for a scheme reduces the deposit you need. It does not force a lender to approve your loan. You still need to pass serviceability, have acceptable credit, show a genuine savings pattern and buy a property the lender accepts. Scheme eligibility and loan approval are two separate tests.
When should you get finance help?
The short answer: earlier than you think. Most buyers wait until they have the full deposit before speaking with anyone. But the right time to get finance assessed is while you're still saving. A specialist can confirm whether your savings target, scheme eligibility and borrowing capacity all line up, before you spend another year saving toward the wrong number.
Getting help makes particular sense if any of these apply:
A finance specialist can assess your position, check scheme eligibility, run a borrowing capacity estimate and help you set the right savings target. The earlier you do this, the less time you waste saving toward a number that doesn't match what a lender will approve.
