10 Tips for Saving for a House Deposit in Australia (2025 Guide)
Trying to save for a house deposit in 2025? You’re definitely not alone—and no, you don’t need to give up your entire social life or skip every splurge. With property prices still at record highs in many cities, it’s easy to feel like homeownership is out of reach. But with some strategic planning and realistic goals, it’s absolutely possible to build your deposit steadily and sensibly. Whether you’re a renter trying to save on the side or just starting to build a financial foundation, these 10 steps can help make your dream of owning a home a little more attainable.
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1. Work Out How Much You Need for a Deposit
Before you can hit a savings target, you need to know what you're aiming for. The “standard” deposit is 20% of the home’s purchase price, which can help you avoid lenders mortgage insurance (LMI). But in many cases, you can purchase with as little as 5% through government-supported schemes or rebates.
Don’t forget to budget for additional costs like stamp duty, legal fees, inspections, and moving expenses. If you’re eligible for grants or first homebuyer support, those can help reduce your upfront costs even further. To better support your move, we have provided you with a FREE moving checklist!
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2. Pay Down Debts Where Possible
Lenders assess your financial commitments when determining how much you can borrow. Having a large credit card balance, car loan, or buy-now-pay-later debt can reduce your borrowing power. If you can, pay down those debts before you apply for a home loan.
While a HELP (HECS) debt won’t stop you from getting a loan, it may still impact how much a bank is willing to lend you—so be sure to factor it in.
3. Create a Clear Budget and Know Where Your Money Goes
Tracking your spending is one of the most effective tools in your savings toolkit. Start by reviewing your last few months of transactions. Are you spending more than you thought on food delivery or streaming services? (although we recommends keeping your Disney Plus or Amazon Prime accounts!)
Use a budget to divide your spending into essentials, savings, and lifestyle extras. Once you see where your money is going, you can start to tweak the areas that aren’t serving your goals.
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4. Make the Most of Government Schemes
There are a range of federal and state-based schemes available to first homebuyers, including:
- First Home Owner Grant (FHOG)
- First Home Guarantee (5% deposit, no LMI)
- Stamp duty exemptions or concessions
Check what’s available in your state, as eligibility criteria can vary. These programs can save you tens of thousands of dollars and help you buy sooner.
5. Open a High-Interest Savings Account
Maximize your money by storing it in a high-yield savings account. In 2025, competitive accounts are offering rates as high as 5%. Many also offer bonus interest when you make regular deposits and avoid withdrawals.
6. Hire a Removalist for Your Move
When it's time to move, hiring a professional removalist can save you a lot of stress, time, and even money in the long run. While it might seem cheaper to do it yourself, the logistics of renting a truck, lifting heavy furniture, and navigating traffic can add up quickly. A reputable removalist like Muval will handle your belongings with care, provide insurance for peace of mind, and help ensure everything arrives safely at your new home.
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7. Reassess the Essentials
Essentials like rent, energy, groceries, and mobile plans don’t have to cost a fortune. You could:
- Switch to a more affordable energy or NBN provider
- Compare grocery costs or start bulk buying staples
- Bundle your phone and internet plan for extra savings
Even saving an extra $50–$100 per month can have a big impact over a year.
8. Avoid Lifestyle Creep
When you get a raise or bonus, it’s tempting to upgrade your lifestyle. But that extra money could turbocharge your savings instead.
Try this: keep living on your old income and put the difference straight into your savings. It’s one of the easiest ways to boost your deposit fund without cutting back.
9. Track Your Progress and Set Milestones
Setting small savings goals along the way makes the process more manageable. Hit $5k? Treat yourself to a cheap reward. Reach $20k? That’s a serious achievement worth celebrating.
Progress tracking tools, visual goal charts, or even a simple spreadsheet can keep you motivated and focused.
10. Cut Energy Costs to Boost Your Savings
An often-overlooked but easy way to save is by cutting down on your energy bills. With rising electricity costs in Australia, even small changes can lead to significant savings over time.
Here’s how to do it:
- Compare energy providers regularly to ensure you’re on the best plan for your needs.
- Switch to energy-efficient appliances and install LED lighting, which use less power and lower your electricity bills.
- Use off-peak energy times for high-energy tasks like running the dishwasher or doing laundry.
- Optimize your heating and cooling by sealing drafts and adjusting your thermostat.
By reducing your energy costs, you can free up more money each month, which can be directed straight into your house deposit savings. A little goes a long way when you’re aiming for your homeownership goals!
The Road to Homeownership Starts With Small Steps
Saving for a house deposit in 2025 isn’t easy—but it is possible. You don’t need to make six figures or stop enjoying life to get there. Instead, focus on building solid habits, trimming the fat from your expenses, and taking advantage of every opportunity available to you—whether that’s a government scheme, a better bank account, or just automating your savings.
At the end of the day, it’s not about being perfect. It’s about being consistent. And every dollar you save gets you one step closer to walking through the front door of your own home.
Frequently Asked Questions: Saving for a House Deposit in Australia (2025)
How much deposit do I need to buy a house in Australia?
The traditional deposit is 20% of the property price to avoid lenders mortgage insurance (LMI). However, with government schemes like the expanded First Home Guarantee starting 1 October 2025, you may buy with as little as 5% deposit, without paying LMI.
What additional costs should I budget for when buying a home?
Besides the deposit, consider stamp duty, legal fees, inspections, moving expenses, and mortgage-related costs. Government grants and rebates can help reduce some of these upfront costs.
What are the top strategies to build a house deposit?
- Calculate your target deposit and budget accordingly
- Pay down debts to improve mortgage eligibility
- Create a clear budget and track expenses
- Use savings accounts with high interest
- Benefit from government schemes and grants
- Curb lifestyle inflation and maintain steady savings
- Reduce energy bills through smarter consumption and better deals
What is the First Home Guarantee?
Starting 1 October 2025, the Australian government offers the First Home Guarantee allowing eligible first home buyers to purchase with as little as 5% deposit, without mortgage insurance. It’s available to all first-time buyers across Australia with no income limits and updated property price caps.
How do I qualify for the First Home Guarantee?
You must be a first home buyer with permanent residency or citizenship, have saved a minimum 5% deposit, meet property price caps for your state, and satisfy lender criteria including income limits and credit assessment.
How does the First Home Guarantee help me save money?
The scheme helps avoid lenders mortgage insurance (LMI), which can cost tens of thousands of dollars. It also allows you to purchase sooner without needing to save a large deposit downpayment.
Where can I find more information or apply for these schemes?
Visit the Australian Government’s Housing Australia or National Housing Finance and Investment Corporation (NHFIC) websites for detailed eligibility criteria and application steps.
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