Top tips to help you save for a home deposit

While purchasing your own home presents an exciting new chapter, it is often one of the biggest financial investments of your life. In order to prepare for this milestone moment, there are small steps you can take to start saving for a home deposit. These tips can also help with longer-term planning, ensuring you can comfortably budget for a mortgage and start a life in your dream home.

Assess your spendings

It might sound straightforward, but taking the time to thoroughly assess your current spending and costs can be extremely helpful in your journey to home ownership.

Having a better awareness of where money is going – whether it be a morning takeaway coffee, unused subscriptions, or a hefty phone bill – will give you a better picture of how you’re currently handling your finances.

It’s important to gather as much information as you can on regular bills, weekly expenses, and savings. Lots of banking apps now allow you to create budgets for various spending categories from entertainment to food and retail, making it easier to monitor those regular costs.

Once you’ve assessed your spending, get an estimate on home loan repayments via a mortgage calculator or your broker to better understand the market.

Cut costs and start budgeting

Now that you know your estimated home loan repayments and have a clearer idea of your current spending, it’s time to look into cutting costs and setting some savings targets.

It’s amazing how little changes can add up. Catching public transport instead of driving, cutting down on take-away dinners or skipping a few retail therapy expeditions can really help your finances.

Having a weekly grocery shop can help you get everything you need in advance, meaning fewer bought lunches, and less time wasted deciding what’s for dinner each night.

Can’t go without a shopping spree? Opting to purchase from vintage or second-hand stores is a wonderful way to still get your retail fix without the hefty price tag. For big events, consider renting clothes instead of purchasing new ones.

If you want to save faster, consider downsizing your rental, cancelling unused streaming memberships, or meeting up with friends over scenic walks, rather than lavish dinners. While keeping fit and healthy is crucial, look into free workout videos or affordable fitness apps instead of expensive gym memberships.

Although cutting out big-ticket spending can speed up the process, it’s important to ensure your budget cuts are achievable and sustainable.

Helpful hint: Most banks have handy spending calculators and savings goal trackers to help you stick to your budget. These can be super effective ways of monitoring energy, phone, internet, and insurance costs.

Tap into government schemes and grants

There are some excellent government grants and national schemes in place that can help get you into your first home sooner.

If you are buying or building a new home in Victoria valued at up to $750,000, you may be eligible for a First Home Owner Grant (FHOG) of $10,000. To be eligible, your home must be a new build and not have previously been sold. To view, the full eligibility criteria visit the website here.

The nationwide First Home Super Saver Scheme (FSSS) can help you afford your deposit faster by putting savings within your super account. Under the FSSS, borrowers can release up to $50,000 from super to make a deposit on a home.

There are plenty of other schemes to help a diverse range of Australians purchase their own home and governments are regularly introducing new ones. Making use of grants you’re eligible for is another great way to save on your home deposit.

Seek support from the experts

If you’re finding it difficult to cut spending or just want to increase your financial literacy before purchasing a home, there are lots of experts you can go to for advice and guidance.

Speaking to financial planners or even friends and family who have achieved their own savings goals can be a big help. Look into term deposits to build your savings faster and speak to your bank to find a term deposit that aligns with the time horizons for purchasing.

Another simple way to save is by exploring different offers available at various banks. Opening a higher-interest savings account at another bank could play a crucial role in keeping you on track for your dream home.

Look for unique opportunities and offers

AVID Property Group has a number of special offers and rewards to make home-buying easier.

Carolina is currently helping buyers secure their dream home with just a 5% deposit on any land purchase. You can also secure a brand new turn-key Townhome with a deposit starting from $15,000 from some of Melbourne’s leading builders. Our dedicated sales team is always on hand to guide you through the buying process and keep you informed on unique offers.

Our AVID Rewards program is another fantastic way to build a home surrounded by friends and family, with special rewards for recommending friends and returning AVID customers.

To learn more about purchasing in Carolina, contact the team on 1800 875 579 or email carolina@avid.com.au.

Please note this blog contains information that is general in nature. You should consider whether the information provided is appropriate for your needs, and where appropriate, seek paid professional financial and legal advice.

This article should not be considered professional legal, financial or risk assessment advice. This article contains general information only and is not intended as legal, financial or insurance advice and should not be construed or relied on as such. AVID is not a financial or legal adviser. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial adviser or insurance broker. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal, insurance or financial product. Although every effort has been made to verify the accuracy of the information contained in this website, AVID, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained on this website or any loss or damage suffered by any person directly or indirectly through relying on this information. You should seek out independent, professional advice on your personal circumstances, particular risks and financial situation before making any financial decisions.