Ways to save for a house deposit

Owning your own home is the great Australian dream, yet for many these days that’s exactly what it can feel like – a dream. But no matter where you are in Australia, buying a home to live in or as an investment isn’t impossible.

Here are some steps you can take to help turn the dream into reality.

Analyse your current spending

First, you’ll want to look at your current financial situation and spending habits. Gather as much information you can on what you’re currently spending. The CommBank app has tools to help you get the full picture.

Set a budget

Almost all good saving plans start with a solid budget. Once you know how much you’re spending, try to find areas where you can cut back.

Some changes to your usual spending habits will make a bigger difference than others. Scaling back your daily coffees can be great start, but moving back home for a short while (if you can) is likely to make a much bigger difference to your bottom line.

Once you know how much you’ll be spending each week, decide how much you can start saving. Make sure your budget is achievable – you’re likely get more out of 12 months of moderate savings than 12 days of big savings. If you can, save a similar amount to what you expect your home loan repayments will be – that can help you budget over the longer term.

Get on top of your debts

Consolidating your debts can be one smart way to create a path forward out of multiple payment dates and interest rates. And the fewer debts you have, the more likely your bank will look favourably on you when the time comes to deciding on your home loan application.

Start saving

The more you can save for a deposit, the less you'll need to borrow and pay in interest. If you have a smaller deposit your bank or lender may charge you Lenders’ Mortgage Insurance or a Low Deposit Premium in order to protect themselves.

See our savings tools for meaninful goals. If you’re not happy about the time it could take you to save, you might want to consider a more affordable property or adopt more stringent saving measures. Keep in mind there are some other upfront costs of buying a home outside of the deposit that you’ll need to be able to cover, particularly stamp duty.

Set your savings aside in an account like CommBank GoalSaver so you can maximise your interest earnings and reduce your temptation to spend. You might even want to consider a term deposit account, which locks away your money for a set period of time while earning you some interest.

Look for helping hands

Depending on your circumstances, help may be available for you to reach your deposit saving goal sooner.

The First Home Owner Grant is a state government scheme in which eligible home buyers receive a one-off grant.

Finally, consider whether your parents or other family members may be willing and able to help you out with a one-off financial gift or interest-free loan. 

Home Guarantee Scheme

You may be able to buy your first home with as little as a 5% deposit. It's part of the Australian government's Home Guarantee Scheme, designed to support eligible first home buyers purchase a home sooner.