How to accelerate your home deposit
Written and accurate as at: Jan 14, 2026 Current Stats & Facts
Saving for a home deposit can feel overwhelming. And with property prices seemingly always on the rise, it can feel like you’re chasing a moving target, no matter how much you put aside. But with a clear plan, realistic expectations and some discipline, you can make progress toward your goal sooner than you might think.
Set realistic goals
For starters, make sure the properties you’ve got your eye on are ones you can genuinely afford. A good exercise is to work out how much a bank is likely to lend you using a borrowing power calculator.
With that as your starting point, you can then research prices in your preferred suburbs to estimate how much you’ll need for a deposit.
Keep in mind that lenders generally like to see at least 20% of a property’s value saved up. While it’s possible to borrow with less, you’ll likely pay more interest in the long run, and may also have to pay Lenders Mortgage Insurance (LMI) to offset the risk posed to your lender.
Once you have a target number in mind, try breaking it down into monthly savings goals. Framing things this way can make the total amount you need to save seem much less intimidating, and racking up those smaller wins each month will hopefully give you the motivation you need to keep going.
Plug leaks in your budget
Small conveniences like takeout meals and Ubers home might not feel expensive in the moment, but they add up quickly. And because they leave nothing tangible behind, it’s easy to get to the end of the month and feel like your money has disappeared into a black hole.
If you want to get serious about saving, you’ll need to work on plugging these budget leaks. Look over your bank statements or use a budgeting app to find out where your money is actually going each month, then try to identify a handful of expenses that can be trimmed slightly or eliminated altogether.
You don’t need to completely upend your lifestyle or deprive yourself of all the things you enjoy doing. Small changes – like swapping Ubers for public transport and cancelling subscription services you rarely use – can make a big difference.
Automate your savings
If willpower is in short supply, it might be worth removing it from the equation altogether and letting technology do most of the heavy lifting.
Consider setting up automatic transfers to a dedicated savings account – ideally one you won’t be tempted to touch – and schedule them for the same day you get paid. This treats your monthly savings as a fixed expense of sorts, rather than leftover money you’re free to dip into.
Find ways to boost your income
Outgoings are important, but don’t neglect that all-important column on the other side of the balance sheet: your income.
If you haven’t had a pay rise in a while, you could make a case for one by highlighting your accomplishments from the past year or any extra responsibilities you’ve taken on. It might also be a good idea to research market rates for your job to make sure you’re getting paid your full value in the first place.
If a payrise isn’t in the cards, look for other ways to bring in extra income. That might mean picking up overtime, freelancing in the same field as your main job, or starting a side hustle in a completely unrelated industry.
Park your savings in the right place
The money you’re saving needs a good home, and in this case that means somewhere it can grow while still remaining accessible when you need it. If you have your heart set on shares, be mindful that while they might generate high returns, the value of your money can fluctuate, and if the market dips when you’re ready to buy, it could see you missing out on your dream home while you wait for things to recover.
A high-interest savings account can be preferable, provided you take the time to find the right one. Some require you to meet certain monthly conditions to earn the top rate– like depositing a minimum amount or refraining from making any withdrawals – so make sure you’re confident you can stick to these requirements.
Patience pays off
Saving up to buy a home takes time and discipline, and while it can seem like an uphill battle, it’s far from impossible. The good news is that the same habits that can help you save a deposit are exactly those that will serve you well once you’re a homeowner.
Keep patient and make sure to explore any other sources of help that might be available, like the First Home Owner Grant and the First Home Guarantee. These schemes can significantly reduce the upfront cost of buying your first home and help you reach your goal sooner.