Why the deposit feels like the hardest part
For most first home buyers in Australia, the deposit is the biggest hurdle between renting and owning. Prices in many suburbs have moved faster than wages, and lenders want to see a deposit that has been saved steadily rather than appearing overnight. The good news is that a deposit is a target you can plan for, and several government schemes may help eligible buyers reach it sooner.
Practical ways to build your deposit faster
1. Set a clear deposit target
Start with the type of property and the suburbs you are realistically considering, then work backwards. The deposit is only part of the upfront cost. Transfer duty (unless a concession applies), conveyancing, building and pest inspections, lender fees and moving costs all need to be budgeted for. Our calculators can help you estimate the whole picture.
2. Pay yourself first
Set up a regular transfer to a separate savings account on payday, before the money reaches your everyday account. Treating the deposit like a bill you pay to yourself removes the decision each fortnight. Many lenders also look for genuine savings, meaning funds accumulated over time rather than received as a lump sum, so a steady pattern helps on two fronts.
3. Trim the spending that is not adding to your life
Go through three months of statements and look for subscriptions you no longer use, delivery fees, unused memberships and the small daily purchases that add up. You do not need to cut everything. Redirecting what you save into the deposit account makes a real difference over a year or two.
4. Add income where you can
Extra shifts, a side business, contract work or weekend hospitality can all go straight into the deposit fund. Keep good records, because lenders will want to see how any additional income is earned and how regular it is.
5. Put windfalls to work
Bonuses, tax refunds, gifts and the proceeds of selling unused items all count. Decide in advance that any lump sum goes into the deposit account. If a family member intends to help with a gift, tell your broker early, as lenders usually want it documented.
6. Rethink your housing costs for a while
Rent is usually a saver’s largest expense. Moving to a smaller place, taking on a housemate or living with family for a defined period can shorten the timeline considerably. Set an end date so it stays a sprint rather than a permanent compromise.
7. Use the tools your bank already offers
Most banking apps include savings goals, round-ups and spending categories. Use them to keep the deposit account visible and separate, and check progress monthly.
8. Declutter and sell
Furniture, electronics, sporting gear and clothes you no longer use can be sold on Facebook Marketplace, Gumtree or eBay. It is a one-off boost rather than a strategy.
Australian support that may help first home buyers
Eligibility rules, property requirements and thresholds change over time and differ between states, so treat these summaries as a starting point and check the current detail before relying on them.
- First Home Owner Grant. A one-off grant funded and administered by each state and territory, generally for buyers purchasing or building a new home. Conditions vary by state, and applications usually go through the state revenue office or an approved agent, which is often the lender.
- First home buyer duty concessions. Most states and territories reduce or waive transfer duty for eligible first home buyers. Occupancy conditions normally apply, such as moving in within a set period and living there as your principal place of residence.
- The Australian Government 5% Deposit Scheme. Formerly the Home Guarantee Scheme, administered by Housing Australia and expanded from 1 October 2025, this lets eligible buyers purchase with a smaller deposit without paying lenders mortgage insurance, because the Australian Government stands behind part of the loan. It is accessed through participating lenders.
- First Home Super Saver Scheme. Run by the Australian Taxation Office, this allows you to make voluntary contributions to your superannuation and later apply to release them, with associated earnings, towards a first home deposit. Strict contribution limits, eligibility conditions and timing rules apply, including requesting a determination before the property settles, so check the current ATO guidance and speak to a registered tax professional about whether it suits you.
These schemes can often be combined, and the right mix depends on your income, the property and the state you live in. Working through the options early can change the deposit target you are aiming for.
Where a broker fits in
A broker can help you set a realistic deposit goal, explain which schemes you may be eligible for and show how different lenders treat genuine savings, gifts and additional income. Oakwood Finance Pty Ltd arranges credit as Credit Representative 561236 of Finsure Finance & Insurance Pty Ltd, Australian Credit Licence 384704. Lenders assess and approve every application against their own criteria. Learn more about our first home buyer service or get in touch.
If you would like help turning your deposit plan into a purchase, book a consultation with the Oakwood Finance team. This article is general information only and does not take your objectives, financial situation or needs into account.