How to Save for a House Deposit in Today’s Market

7 August 2025

Let’s be honest—saving for a house deposit feels like climbing a mountain with flip-flops. With sky-high property prices and rising living costs, it’s no wonder many people feel like homeownership is just a dream on a distant horizon. But here’s the thing: it’s not impossible. Challenging? Absolutely. Impossible? Not even close.

If you’re serious about buying your first home (or any home), you’ve already taken the first step just by reading this. So let’s break this down in plain English and talk about how to save for a house deposit in today’s market. No fluff, no finance jargon—just real, actionable advice.

Why Saving for a House is So Tough Right Now

Let’s face it, the economic deck feels a little stacked. Housing prices have grown much faster than wages, inflation is biting into our grocery bills, and interest rates keep doing the cha-cha. It's no wonder many people feel like they're treading water financially.

But here's the deal: Every market has its ups and downs. Your job? Learn to ride the waves instead of sitting on the shore. Saving for a deposit might take longer than it would’ve a decade ago, but with the right mindset and strategy, you can get there.

Step 1: Figure Out Your Savings Target

Know Your Numbers

First things first—how much do you actually need? In most cases, you’ll need at least 5% to 20% of the property price as a deposit. So if you’re aiming for a $400,000 property, you’ll need anywhere from $20,000 (5%) to $80,000 (20%) for the down payment.

But don’t forget about extra costs like:

- Stamp duty
- Legal fees
- Inspections
- Loan application fees
- Moving costs

So yeah, it’s not just the deposit you need to save for—it’s the whole package. Aim high when budgeting. It’s better to have more saved up than fall short when you’re about to close the deal.

Step 2: Set a Realistic Timeline

Goals Without Deadlines Are Just Dreams

Saving for a $50,000 deposit might sound scary until you break it down. Let’s say you want to buy a home in 3 years. That means you'd need to save roughly:

$50,000 ÷ 36 months = about $1,390/month

Sound crazy? Maybe. But remember—once you have a number, you can start shaping your saving and spending around it.

Here’s a trick: use what I like to call the "Netflix Principle." If you can afford a bunch of small monthly subscriptions, you can afford to put that same money into your dream home fund.

Step 3: Create a Dedicated Savings Account

Separate It or Forget It

Open a high-yield savings account or term deposit specifically for your house deposit. This shouldn’t be the same account you dip into for brunch or impromptu online shopping sprees.

Better yet, automate your savings. Set up a direct debit the same day you get paid so the money is gone before you even notice it. Out of sight, out of mind—and into your future home.

Step 4: Slash the Unnecessary Expenses

Trim the Fat, Not the Joy

You don’t have to live like a monk, but cutting back can seriously speed up your savings. Look at your current spending and ask:

- Do I really need all those delivery apps?
- Could I find a cheaper phone plan?
- What subscriptions am I not using?
- Am I eating out more than I should?
- Could I downgrade my car or use public transport?

Here’s a fun way to look at it: every dollar you save is a brick in the foundation of your future home. Each small sacrifice builds your goal.

And guess what? This doesn’t mean you can’t treat yourself. Budget in some fun money so you stay sane, and make saving sustainable.

Step 5: Boost Your Income (Yes, You Can)

Earn More, Save Faster

Cutting expenses is great, but earning more can be a game-changer. Think about side hustles or freelance gigs. Could you:

- Drive for Uber or deliver food?
- Sell stuff you don’t use?
- Offer tutoring, pet-sitting, or babysitting?
- Rent a spare room or car?

Even an extra $200 a month can make a huge dent in your deposit savings over time.

If you’ve been at your job for a while, ask if you’re due for a raise. It never hurts to ask, especially if you’ve been bringing value to your employer.

Step 6: Make Your Money Work for You

Don’t Let Your Savings Nap

Let’s put that money to work. Look for savings accounts or term deposits with high interest—don’t just leave it in a regular account that gives you peanuts in return.

If you’re comfortable with a little more risk and a longer timeline, consider looking into:

- Index funds
- ETFs
- Managed funds

Yes, there’s some risk, but even modest returns can help you reach your savings target sooner. Just make sure you get financial advice before diving in.

Step 7: Look Into First-Home Buyer Schemes

Free Money? Don’t Say No

Depending on where you live, there’s a good chance the government has first-home buyer grants, shared equity schemes, or tax breaks available.

Here’s what you might find:

- First Home Owner Grant (FHOG)
- First Home Super Saver Scheme
- Stamp duty concessions
- Government-backed low deposit loans

That’s potentially thousands of dollars saved or given to you. Not checking your eligibility is like leaving free money on the table.

Step 8: Stay Motivated and Track Your Progress

It’s a Marathon, Not a Sprint

Saving takes time. Your motivation is going to dip now and then—that’s normal. The key is to stay focused and celebrate your progress.

Create visual trackers, set mini-goals, and reward yourself for hitting milestones. Saved your first $5,000? Treat yourself to a fancy coffee or a night out.

And remember why you’re doing this. You’re not just saving cash—you’re building your future, one dollar at a time.

Step 9: Try Budgeting Methods That Actually Work

Find What Suits You

There’s no one-size-fits-all when it comes to budgeting. Try out different methods and find what clicks. Some popular ones include:

- 50/30/20 Rule: 50% needs, 30% wants, 20% savings
- Zero-Based Budgeting: Every dollar has a job
- Envelope System: Great for visual learners who like cash
- Reverse Budgeting: Save first, spend what remains

The point is to stay conscious of where your money is going. If you're not tracking it, you’re probably wasting it.

Step 10: Stay Flexible But Focused

Life Happens—Be Ready for It

Maybe you’ll have a medical emergency, lose a job, or need to support family. Saving plans don’t always go in a straight line.

Don’t beat yourself up if you need to adjust your timeline. Bend, but don't break. Just promise yourself you'll keep moving forward—even if it's one tiny step at a time.

Final Thoughts: You’ve Got This

Saving for a house deposit can feel like standing at the foot of a mountain. But every step you take—every dollar saved, every splurge resisted—is a step closer to the summit.

It’s not a race. It’s a journey. With the right tools, a bit of hustle, and a whole lot of heart, you’ll get there. That "Sold" sign will be yours one day—not just a photo on your vision board.

Remember: your future home is already waiting for you. Now go out and hustle like it owes you rent.

FAQs About Saving for a House Deposit

How much should I save each month?

It depends on your goal and timeline. Break it down: divide your target deposit by the number of months you want to save. Then create a budget around that number.

Should I invest my house deposit savings?

Only if your timeline is longer than 3–5 years and you’re comfortable with risk. Investments can go up or down. Always consult a financial advisor first.

What are some hidden costs of buying a house?

Legal fees, inspections, mortgage application fees, moving costs, insurance, and sometimes even furniture for your new home. Always budget for 5–10% more than just the deposit.

What if I can’t save 20%?

You may still be able to buy with a lower deposit, especially through government programs or low-deposit loans. Keep in mind that deposits under 20% usually require lender's mortgage insurance (LMI).