How to Save $50K-$100K for a House Deposit
Actionable strategies to save a house deposit in Australia, including budgeting, FHSSS, high-interest accounts, and realistic timelines.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
Step 1.Set Your Deposit Target and Timeline
First, determine how much you actually need. For a $600,000 property, a 20% deposit is $120,000 (avoiding Lenders Mortgage Insurance), while a 5% deposit is $30,000 (but you will pay $10,000-$20,000 in LMI). Most first home buyers aim for 10-20%. Add stamp duty costs (which vary by state — use Savings Mate's stamp duty calculator) and legal fees ($1,500-$3,000) to your target. Be realistic about your timeline: saving $80,000 on a $70,000 salary takes roughly 4-5 years with disciplined saving. If you are saving as a couple, your combined income makes the target much more achievable. Write down your specific target number and date — vague goals produce vague results.
Step 2.Use the First Home Super Saver Scheme
The FHSSS is one of the most powerful and underused tools for first home buyers. It allows you to make voluntary super contributions (up to $15,000 per year, $50,000 total) and withdraw them later for a house deposit, taxed at your marginal rate minus 30 percentage points (minimum 0%). For someone on a 32.5% marginal rate, this means paying just 2.5% tax on those savings instead of 32.5% — an effective saving of roughly $5,000-$10,000 depending on your income and contributions. You can contribute via salary sacrifice (reducing your taxable income) or personal contributions (claimed as a tax deduction). Apply for a FHSSS determination through the ATO before signing a contract to purchase. Processing takes 15-25 business days, so plan accordingly.
Step 3.Maximise Your Savings Rate
Your savings rate (percentage of income saved) matters more than your investment returns when building a deposit over 3-5 years. Aim for 30-50% of take-home pay. The biggest levers are your three largest expenses: housing, transport, and food. Consider house-sharing or moving back with family temporarily to slash rent — saving $200/week by sharing adds $10,400/year to your deposit fund. Drive a cheap reliable car instead of financing a new one, or use public transport. Meal prep and cook at home instead of eating out — the average Australian couple spends $300/week on dining out and takeaway. These are not permanent sacrifices; they are temporary measures to reach a life-changing goal. Track your savings rate monthly.
Step 4.Choose the Right Savings Account
Where you park your deposit savings matters. High-interest savings accounts currently offer 5-5.5% (as of early 2026) with conditions like monthly deposits and limited withdrawals. This means your $50,000 balance earns $2,500-$2,750 per year in interest — real money. Compare accounts at Canstar or RateCity. Avoid term deposits unless you have a very fixed timeline, as breaking them early forfeits bonus interest. Do not invest your house deposit in shares or crypto — market volatility could slash your balance right when you need it. Your deposit savings are not an investment portfolio; they need to be safe, liquid, and earning the best interest rate available. Review your rate quarterly and switch if a better option appears.
Step 5.Boost Income with Side Hustles and Windfalls
Increasing your income, even temporarily, dramatically accelerates your deposit savings. Popular Australian side hustles include tutoring ($40-$80/hour), freelance writing or design, weekend hospitality shifts, ride-sharing, or starting a small online business. Earning an extra $500/fortnight adds $13,000/year to your deposit fund. Direct all windfalls — tax refunds, work bonuses, gifts, inheritance — straight into your deposit savings without letting them touch your spending account. If you receive a pay rise, commit the entire after-tax increase to savings (you were living without it before). Some couples take on a second job for 12-18 months to accelerate their timeline. Short-term hustle creates long-term stability.
Step 6.Track Progress and Adjust Monthly
Review your deposit balance and savings rate on the first of every month. Create a simple spreadsheet or use Savings Mate's savings goal tracker showing your starting point, current balance, target, and projected date of achievement. If you are falling behind target, identify why — was it an unavoidable expense, or did spending creep back in? Adjust your budget or timeline accordingly. Celebrate milestones: reaching 25%, 50%, and 75% of your target are real achievements. Share your progress with your partner or accountability buddy. If you find yourself consistently missing targets, it may be worth reassessing whether your property price range is realistic for your income, or whether a different suburb or city offers better value.
Step 7.Explore Government Assistance Programs
Beyond the FHSSS, several government programs help first home buyers. The First Home Guarantee allows eligible buyers to purchase with just 5% deposit and no LMI — the government guarantees the remaining 15%. The Regional First Home Buyer Guarantee offers similar support for regional purchases. The Family Home Guarantee helps single parents buy with a 2% deposit. State-based First Home Owner Grants provide $10,000-$30,000 for new homes. Stamp duty concessions vary by state — in Victoria, first home buyers pay no stamp duty on properties under $600,000 and reduced duty up to $750,000. Check both federal (NHFIC) and your state's revenue office websites for current programs. Eligibility criteria change regularly, so verify before relying on any program.
Step 8.Prepare for the Final Stretch
As you approach your deposit target, begin preparing for the purchase itself. Get pre-approval from a lender 3-6 months before you plan to buy — this confirms your borrowing capacity and shows sellers you are serious. Start attending open homes in your target areas to understand market values and sharpen your negotiation skills. Engage a conveyancer or solicitor and building inspector before you need them urgently. Ensure your savings account allows quick transfers for the exchange deposit (typically 0.25% on signing, then 5-10% at exchange). Keep saving beyond your minimum deposit — extra funds provide a buffer for unexpected costs like moving, furniture, and immediate repairs. The home stretch requires patience; do not rush into a bad purchase just because you have the money.
Useful Tools
- Savings Goal Calculator
- Stamp Duty Calculator
- Borrowing Power Calculator
- FHSSS Contribution Calculator
Resources
- ATO — First Home Super Saver Scheme (ato.gov.au)
- NHFIC — Home Guarantee Scheme (nhfic.gov.au)
- Moneysmart — Saving for a Home Deposit (moneysmart.gov.au)
- State Revenue Offices — First Home Buyer Concessions