How to Save for Your First Home — It May Be Closer Than You Think

Start With the End in Mind

The first step to saving for your home is knowing your target. In most cases, you’ll need a deposit of at least 5–20% of the property’s purchase price, plus costs like stamp duty, legal fees, and building inspections. Don’t let that number scare you — there are government schemes that can help you get in sooner.

The First Home Guarantee Scheme

The Australian Government’s First Home Guarantee (formerly First Home Loan Deposit Scheme) allows eligible first home buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). This can save you tens of thousands of dollars and get you into the market years earlier.

There are also State Government grants available in most states — in some cases up to $10,000 or more — specifically for first home buyers building or buying a new home.

Set Up a Dedicated Savings Account

Open a high-interest savings account specifically for your home deposit. Name it something motivating — “Our First Home” — and set up an automatic transfer on payday so you save before you spend. Even $200–$300 a week adds up to $10,000–$15,000 a year.

Track Your Spending for 30 Days

Most people are surprised when they actually see where their money goes. Track every dollar for one month using a free app like Frollo or Pocketbook. You’ll almost certainly find $200–$500 a month in spending that can be redirected to your deposit without dramatically changing your lifestyle.

Reduce Your Debts First

Lenders look at your total debt when assessing your borrowing capacity. Paying down credit cards, buy-now-pay-later accounts, and personal loans before applying for a home loan can significantly increase how much you’re able to borrow — and at a better rate.

Get Pre-Approved Before You Start Looking

Pre-approval gives you a realistic budget and shows sellers you’re a serious buyer. It also means you can move quickly when you find the right property. Claire can help you get pre-approved and understand exactly what you can afford before you fall in love with a home that’s out of reach.

Ready to Take the First Step?

Claire offers a dedicated First Home Buyer session — via Zoom or in person — where she’ll walk you through everything you need to know: how much you need to save, what grants you’re eligible for, and what the whole process looks like from start to settlement. It’s free, there’s no obligation, and it could change your life.