The Ultimate Guide to Saving for Your First Home

The Ultimate Guide to Saving for Your First Home

Young couple planning their first home savings goal using a tablet and notebook.

Buying your first home in Australia can feel overwhelming, but with a solid savings plan and knowledge of available support, it's more achievable than you think. This guide will walk you through everything you need to know to get there faster.

1. Know Your Target Deposit

In most cases, you’ll need at least 20% of the property value. For a $600,000 home, that’s $120,000. You can buy with less, but you may need to pay Lenders Mortgage Insurance (LMI).

2. Use Government Schemes

  • First Home Guarantee: Buy with as little as 5% deposit (no LMI required)
  • First Home Super Saver (FHSS): Use super to boost your deposit savings with tax benefits
  • Stamp Duty Concessions: Many states offer discounts for first-time buyers

3. Open a High-Interest Savings Account

Look for savings accounts with bonus interest for regular deposits and no withdrawals. Examples:

  • ING Savings Maximiser
  • ubank Save Account
  • 86 400 Save Account

4. Set a Realistic Timeline

Break down your goal into monthly targets. For example: $120,000 over 4 years = $2,500/month. Adjust based on your income and expenses.

5. Cut Costs Without Feeling Deprived

  • Move into a share house temporarily
  • Limit takeout to weekends only
  • Sell unused items online for extra cash

6. Consider Investing While You Save

If your savings goal is 3+ years away, you might consider low-risk investment options like ETFs or Robo-Advisors (e.g., Raiz, Spaceship). Start small and keep risk in mind.

Affiliate Opportunities – Tools to Help You Save

  • WeMoney: Track your savings goal & connect with lenders
  • Spaceship: Micro-investing while you save
  • ubank: High-interest savings account with auto-split

Final Thoughts

Saving for your first home isn’t just about cutting costs — it’s about being intentional with your money. Start now, stay consistent, and take advantage of tools and schemes designed to help first-time buyers in Australia.

Next article: Credit Cards vs Buy Now Pay Later: Which Is Better?

 

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