How to Save for a House on $60K Salary

Saving for a house deposit is less about finding extra money and more about managing the money you already earn. If your gross salary is $60,000 in 2026, after tax, your take-home income will be roughly $4,200 to $4,500 per month, depending on your super contributions. To build a realistic budget, we need to be disciplined. A good starting goal is allocating between $1,000 and $1,500 per month towards your deposit. This requires tracking every dollar—think coffee runs, subscriptions, and dining out. By aggressively saving $1,200 per month, you are setting yourself up for success. Before you commit to a budget, check out our guide on checking your affordability. Remember, the goal is to live below your means while still keeping your savings momentum strong.

The deposit size dictates your saving timeline. Let’s assume you are aiming for a modest entry-level home valued around $650,000. A 5% deposit is $32,500; 10% is $65,000; and 20% is $130,000. With a consistent, disciplined savings rate of $1,200 per month, here is your rough timeline: To hit the 5% deposit ($32,500), you'll need about 2 years and 3 months. For the 10% deposit ($65,000), you are looking at roughly 4 years and 2 months. The 20% goal is the biggest hurdle, requiring about 8 years and 4 months. This timeline shows why government support is so crucial. Understanding these milestones helps you decide whether to focus purely on saving or to leverage available schemes like the First Home Super Saver Scheme.

Don't assume you have to save every cent yourself. The Australian government offers several tools designed to help first-time buyers. The most powerful one is the First Home Super Saver Scheme (FHSS), which allows you to salary sacrifice up to $15,000 annually into your super, and then withdraw that money later to help fund your deposit. Additionally, you may qualify for the First Home Owner Grant (FHOG) or specific state grants like Help to Buy, depending on where you plan to live. These grants are fantastic lump sums that can significantly shorten your saving time. We recommend using our grant calculator to see exactly what you might be eligible for based on your location and income. These schemes are designed to make the jump into home ownership more achievable.

Since your income is highly manageable, your focus needs to be on efficiency. First, tackle high-interest debt (like credit cards) immediately; the interest payments are costing you more than any deposit saving. Second, consider automating your savings. On payday, set up an automatic transfer of $1,200 directly into a dedicated, high-interest savings account. This makes the money invisible for spending. Third, look for side income streams. Can you do freelance writing, dog walking, or consulting in your area of expertise? Every extra dollar earned goes straight into the deposit pot. Finally, use our savings goal calculator to model different scenarios—what if you increase your savings to $1,500? Seeing the accelerated timeline is a huge motivator!

Q: Does my salary level qualify me for all grants?

Answer: Not necessarily. Grants like the First Home Owner Grant are highly dependent on both your income level and the specific state you are buying in. Always check the official government website and use our grant calculator to confirm eligibility before making financial plans.

Q: Is the First Home Super Saver Scheme (FHSS) complicated?

Answer: It involves salary sacrificing, which means you agree to pay a portion of your pre-tax income into super. While it requires careful planning, the tax benefits and the ability to withdraw the money make it an incredibly valuable tool for first-home buyers.

Q: Should I save in cash or super for the deposit?

Answer: For immediate funds, a high-interest savings account is best. However, for long-term, guaranteed savings, the FHSS within super is highly effective because you benefit from tax deductions while keeping the money separate from your day-to-day spending.