Saving for a home deposit can feel daunting. Property prices are high, costs can add up quickly, and reaching your goal takes time. But with the right strategies, it’s possible to make steady progress.

Some people save aggressively, cutting expenses wherever they can. Others find ways to boost their income or invest to grow their savings. Government schemes may also help reduce the amount needed upfront.

This article explores 10 practical strategies to save for a home deposit. No single method suits everyone, but understanding your options can help you progress toward your goals.

How long does it take to save for a home?

The time it takes to save for a home deposit varies from person to person. It depends on factors like:

• Property prices – Higher prices mean larger deposits, which can take longer to save.
• Location – Buying in a major city often requires more savings than purchasing in a regional area.
• Wage growth – Rising incomes may help savers reach their goals faster.
• Savings rate – Setting aside a higher percentage of income can speed up progress.
• Extra income – Side jobs or salary increases can help boost savings.
• Government schemes – Some grants or programs may reduce the deposit needed.

Everyone’s timeline is different. For more details, check out our article on how long it takes to save for a home in Australia . To help you meet your deposit timelines, here are some strategies to consider.

1. Set a clear savings target

Knowing your target deposit amount can help you save efficiently. It gives you a clear goal to track progress.

Start by estimating how much you’ll need. Most lenders require a deposit of at least 5%, but a 20% deposit helps avoid Lenders Mortgage Insurance (LMI) , which adds extra costs.

Other upfront costs to consider include:

• Stamp duty – A tax on property purchases, with exemptions for some first-home buyers .
• Legal and conveyancing fees – Costs for handling contracts and settlements.
• Building and pest inspections – Recommended for checking the property condition before buying.
• Loan application fees – Some lenders charge fees for processing a mortgage application.

Once you know your target, break it down into monthly savings goals. Automating savings (covered next) can help you stick to the plan.

2. Automate your savings to stay on track

Automation can make saving easier by removing the effort. Once set up, it can ensure you’re consistently adding to your deposit without giving it another thought.

Here are some ways to automate your savings:

• Salary splitting – Direct a portion of your pay straight into a dedicated savings account .
• Scheduled bank transfers – Set up recurring transfers to move money automatically after each payday.
• Round-up apps – These round up purchases to the nearest dollar and save the difference.

Using automation can help you build momentum and stay on track. For details on implementing this strategy, read more on how to automatically save a deposit for your first home .

3. Use government grants and schemes

Government support can fast-track your savings by reducing the deposit you need to save or by cutting upfront costs. If you’re eligible, these schemes could make a big difference.

Here are some key programs worth checking out:

• First Home Owner Grant (FHOG) – A one-time payment for first-home buyers purchasing a new home or building. The amount varies by state, but it can be $10,000 or more in some areas.
• First Home Guarantee (FHG) – Helps eligible buyers purchase a home with as little as a 5% deposit, without paying LMI. The government acts as a guarantor, making it easier to get a loan.
• First Home Super Saver Scheme (FHSS) – Lets you save for a home deposit within your super, taking advantage of lower tax rates on contributions and earnings. You can withdraw up to $50,000 to put towards your first home.
• Stamp duty concessions – Many states reduce or waive stamp duty for first-home buyers, which can save thousands. Rules vary, so it’s worth exploring what’s available in your state.

Remember that not everyone qualifies for these schemes, and the details can change.

4. Cut unnecessary spending

Saving for a home deposit doesn’t mean cutting out everything you enjoy. Small, consistent changes can help free up extra cash without making life miserable.

Here are some ways to reduce spending while staying balanced:

• Review subscriptions and memberships – Cancel services you rarely use or switch to cheaper plans.
• Cook at home more often – Even replacing a few takeaway meals each month can add up over time.
• Negotiate better deals – Compare providers for insurance, phone plans, and utilities to find savings.
• Buy second-hand or DIY – Consider pre-owned furniture, clothing, or even refurbished electronics instead of always buying new.

The key is sustainable budgeting . Cutting every expense might help in the short-term, but it’s hard to maintain. Focus on spending intentionally rather than making extreme sacrifices.

5. Consider a side hustle or boosting income

Cutting expenses helps, but earning more can speed up your savings rate. A higher income means more money to put toward your deposit without sacrificing essentials.

Ways to boost your income include:

• Taking on a side hustle – Freelancing, tutoring, rideshare driving, or selling handmade products can bring in extra cash.
• Working extra shifts – If your job allows, picking up casual or weekend shifts can help grow your savings faster.
• Negotiating your salary – Many people overlook this, but asking for a pay rise could boost savings without needing extra work.

Every little bit adds up. Finding ways to increase your earnings, even temporarily, can make a big difference over time.

6. Decide: should you save or invest your home deposit?

Earning more can speed up your savings journey, but where you put that money also matters. There are two main ways to grow your home deposit: saving or investing . Each has pros and cons.

Saving can offer certainty. Money in a high-interest savings account or term deposit is protected, making it a potentially safer option for short-term goals. If you plan to buy within a few years, saving may reduce the risk of losing money due to market drops.

Investing has higher growth potential, but markets fluctuate. A diversified investment portfolio could help your deposit grow faster, but there’s a higher chance of short-term losses. If the market dips just before you buy, you might have less than expected.

Which option suits you?

• Saving might be better if you plan to buy soon, want guaranteed returns, or prefer low risk.
• Investing might suit you if your timeline is flexible, you’re comfortable with market ups and downs, and you’re aiming for higher potential growth (and the increased risk it entails).

Some people do both, keeping part of their deposit in savings while investing a portion for extra growth.

7. Choose the right savings account or investment option

It’s one thing to decide whether to save or invest (or do both) and another to choose the right place to grow your deposit.

If you're saving, look for:

• High-interest savings accounts – Earn interest while keeping your money accessible. Some accounts offer bonus rates for regular deposits.
• Term deposits – Lock in a fixed interest rate for a set period. This can be useful if you want to avoid spending your savings.

If you're investing, options might include:

• Exchange-traded funds (ETFs) or managed funds – These spread risk across different assets but can fluctuate in value.
• Micro-investing platforms – Allow small, regular investments, with lower investing thresholds than direct shares or ETFs.

The best option for you depends on your timeframe and risk comfort. Short-term savers may prefer guaranteed returns, but if you want flexibility and are comfortable with risk, you might consider higher-growth investments.

8. Reduce existing debt to free up more cash

Debt can slow down savings. High-interest debt, like credit cards and personal loans, can eat into your income, making it harder to build a deposit. Paying it off first can free up more money for saving.

Here are two common debt strategies :

• Avalanche method – Pay off debts with the highest interest rates first. This reduces the total interest paid over time.
• Snowball method – Pay off the smallest debts first for quick wins and motivation.

Lower debt levels can also boost borrowing power. Lenders look at your existing debts when assessing a home loan application, so a lower debt load can improve your ability to secure a loan.

9. Consider co-buying to reduce deposit pressure

Saving a deposit on your own can take time. Buying with someone else – whether it’s a partner, family member, or friend – can make it easier. Splitting the deposit and costs means you might get into the market sooner.

But co-buying isn’t just about sharing the price tag. Before jumping in, make sure you’ve covered the important stuff:

• Co-ownership agreements – Who owns what? How will you split costs? What happens if one person wants out?
• Legal protections – A formal agreement can help avoid future headaches. It’s worth getting professional advice.
• Financial planning – Everyone needs to be on the same page with repayments, bills, and long-term goals.

Not keen on living together? Rentvesting could be an option. This means buying where you can afford but renting where you want to live. It’s a way to get on the property ladder without sacrificing lifestyle.

10. Track progress and celebrate milestones

Saving for a home deposit can feel like a long journey, but tracking progress keeps you focused and helps you stay motivated.

As mentioned, breaking your goal into smaller milestones makes it more manageable. Instead of focusing on the full deposit, set targets like reaching 10%, 25%, or 50% of your goal.

To keep things on track, try:

• Savings tracker apps – These can show progress visually and keep you accountable.
• Spreadsheets – Simple but effective for tracking deposits, interest earned, and overall growth.
• Regular check-ins – Reviewing your progress monthly helps you adjust as needed.

Small wins matter. Whether it’s hitting a savings goal or paying off a debt, celebrating milestones can keep you motivated to push forward.

Find the way that works for you

There’s no single best way to save for a home deposit. What works depends on your timeline, risk comfort, and financial situation.

Some people focus on cutting expenses, others look for ways to earn more, and some use investment strategies to boost savings. The right approach is the one that suits your goals.

Once you choose a strategy that works for you, the next important step is to get started. Every dollar saved brings you closer to your goal. The sooner you start, the sooner you’ll get there!