How to Save for a House Deposit: 12 Tips to Reach Your Homeownership Goal Faster

Figuring out how to save for a house deposit can feel overwhelming, especially with rising property prices. With the cost of homes climbing each year, having a solid deposit is crucial—it not only helps you access better loan options but also reduces long-term interest costs. 

In a competitive market like Sydney, the sooner you start, the better positioned you’ll be when the right property comes along. 

This is where Mortgage Brokers Northern Beaches can make a difference. Their expert advice and industry connections help you find low-deposit options, government schemes, and other best home loan options while guiding you through the deposit-saving process. 

Ready to make your dream home a reality? Let’s dive into the best strategies to grow your savings faster.

12 Tips on How to Save for a House Deposit

Saving for a house deposit takes planning, discipline, and a few smart money moves. While it may seem daunting, small and consistent efforts can bring you closer to your dream home. Here are 12 practical tips to help you grow your deposit faster, including Sydney-specific insights to navigate the local market.

#1  Set a Clear Savings Goal

Knowing exactly how much you need for a deposit keeps you motivated and focused. In Australia, most lenders require at least 20% of the property price to avoid Lenders Mortgage Insurance (LMI). 

For example, if you’re eyeing a $1 million home in Sydney, that’s a $200,000 deposit. Start by calculating your target amount, then break it down into manageable weekly or monthly savings goals.

#2  Open a High-Interest Savings Account

A dedicated savings account with a high interest rate helps your money grow passively. Some of the best savings accounts in Australia offer rates above 4.5% per annum. 

Choosing an account with bonus interest for regular deposits ensures you stay on track. Automate transfers to this account each payday to build your deposit effortlessly.

#3  Cut Unnecessary Expenses

Reviewing your spending habits can reveal areas to cut back. Australians spend an average of $2,200 per year on takeaway food and coffee alone. Cooking at home, using public transport, and reducing impulse buys can free up hundreds per month. 

Try the 50/30/20 budget rule—50% needs, 30% wants, and 20% savings—to keep your finances balanced.

#4  Take Advantage of First Home Buyer Schemes

The Australian government offers various grants and concessions to help first-home buyers. The First Home Owner Grant (FHOG) provides up to $10,000, while First Home Guarantee lets eligible buyers purchase with just 5% deposit without LMI.

Check eligibility requirements early to factor these into your deposit strategy.

#5  Use a Budgeting App to Track Progress

Budgeting apps like Pocketbook or Frollo help you track spending and savings. Studies show that Australians who actively monitor their finances save 15-20% more per year. 

Seeing your savings grow can keep you motivated. Set weekly or monthly check-ins to adjust your budget as needed.

#6  Boost Your Income with a Side Hustle

With Sydney’s high cost of living, a side hustle can accelerate your savings. Popular options include freelancing, Uber driving, tutoring, or renting out a spare room on Airbnb. 

A part-time side gig earning an extra $200 per week adds up to $10,400 per year—a huge boost for your deposit! Allocate 100% of your side hustle income to your house deposit fund.

#7  Reduce Your Rent or Move Back Home

Rent is one of the biggest expenses in Sydney, with the median rent sitting at $700 per week for houses. Moving into a smaller apartment, getting a roommate, or temporarily living with family can free up thousands per year. 

If you save even $200 per week on rent, that’s over $10,000 in a year!

#8  Consider a Term Deposit for Extra Savings

If you have a lump sum saved, a term deposit can lock it away while earning guaranteed interest. Current term deposit rates range from 4-5% per annum depending on the bank and duration. 

Unlike savings accounts, you can’t withdraw funds early without penalties, which can prevent impulsive spending. Choose a 6-12 month term for flexibility while maximising returns.

#9  Sell Unused Items for Extra Cash

Decluttering your home can bring in extra funds. Many Australians have over $5,000 worth of unused items sitting at home. 

Selling clothes, furniture, electronics, and collectibles on platforms like Facebook Marketplace or eBay can add to your deposit. Set a goal to list at least 10 items per month to build extra savings.

#10  Be Strategic with Credit Cards and Debt

High-interest debt can drain your savings. The average Australian carries $3,200 in credit card debt, costing hundreds in interest annually. 

Prioritising debt repayment before aggressive saving can free up more money long-term. Switch to a no-fee credit card and pay off balances in full each month to avoid interest.

#11  Explore Shared Equity or Co-Buying Options

With Sydney’s median house price hovering around $1.3 million, co-buying with family or friends can make homeownership more achievable. Shared equity schemes, like the NSW Shared Equity Home Buyer Helper, allow eligible buyers to purchase with just 2% deposit while the government funds part of the purchase. 

Discuss legal agreements early to protect everyone’s interests.

#12  Research Up-and-Coming Suburbs for Better Affordability

While Sydney’s inner suburbs remain expensive, areas like Blacktown, Campbelltown, and Penrith offer homes 30-40% cheaper than central locations. Buying in a growing suburb means lower upfront costs and better capital growth potential. 

Attend property inspections and follow market trends to identify the best-value suburbs.

Saving for a house deposit takes time, but with the right strategies, it’s absolutely possible—even in Sydney’s competitive market. By combining smart savings habits, government incentives, and expert guidance from Mortgage Brokers Northern Beaches, you can fast-track your journey to homeownership. 

Government Programs to Help You Save for a Home Deposit

Saving for a home deposit in Sydney can feel overwhelming, but government programs offer grants, low-deposit options, and tax benefits to make homeownership more achievable. Here are the key schemes available in NSW:

• First Home Owner Grant (FHOG): Offers $10,000 to first-home buyers purchasing a new home valued up to $750,000, helping reduce upfront costs.

• First Home Buyer Assistance Scheme (FHBAS): Provides stamp duty exemptions or discounts for homes up to $800,000, potentially saving buyers up to $31,000.

• First Home Guarantee (FHBG): Allows first-home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance (LMI)—especially useful in Sydney’s pricey market.

• Shared Equity Home Buyer Helper: Helps eligible buyers by co-funding up to 40% of a new home’s price, reducing the deposit and loan amount needed.

• First Home Super Saver Scheme (FHSSS): Lets buyers save up to $50,000 through superannuation, benefiting from lower tax rates and higher savings potential.

These programs can fast-track your savings and help you enter the property market sooner. Not sure which one suits you? A mortgage broker can guide you through your options and maximise your savings potential.

Frequently Asked Questions (FAQs)

What is the fastest way to save for a house deposit?

The fastest way to save for a house deposit is to cut discretionary spending, increase extra income, and automate savings. Setting up automatic transfers to a high-interest savings account, using a spending breakdown to track expenses, and applying for stamp duty discounts can help you reach your deposit goals faster.

How much do I need for a house deposit in Sydney?

The typical house deposit in Sydney is 20% of the purchase price to avoid Lenders Mortgage Insurance (LMI). For a $1 million property purchase, this means saving at least $200,000, but with financial assistance like the First Home Guarantee, you may only need 5% deposit ($50,000).

Can I buy a house with an $80,000 deposit?

Yes, you can buy a type of property with an $80,000 deposit, but your borrowing capacity will depend on your credit score, cash flow, and loan repayments. With government schemes like the First Home Guarantee, you could secure a property with a 5% deposit, meaning you might afford a home worth $1.6 million if eligible.

Is $30,000 enough for a house deposit?

A $30,000 deposit may be enough if you qualify for a low-deposit home loan or government-backed schemes. However, for a property transfer in Sydney, most lenders require at least 5-10% of the purchase price, meaning you may need more unless using shared equity programs.

How does my credit score affect my ability to save for a house deposit?

A strong credit score increases your pre-approval chances and helps you secure better credit products with lower interest rates. Checking your credit report regularly and minimising debt improves your standing with lenders, making your property purchase more affordable.

What are the additional costs when saving for a house deposit?

Beyond the deposit goals, you’ll need to budget for stamp duty, property transfer fees, loan repayments, and legal costs. Using a stamp duty calculator can help estimate these expenses, and some first-home buyers may qualify for stamp duty discounts.

Should I invest my savings while saving for a house deposit?

Investing can help grow your deposit through capital gain, but it comes with risks, especially in a fluctuating rate environment. If you need your deposit in the short term, safer options like term deposits or one-off payment contributions to a high-interest savings account may be better.

Final Thoughts

Saving for a house deposit in Sydney in 2025 may take time, but with the right strategies, consistency, and a little financial know-how, it's absolutely possible. 

If you’re ready to take the next step but aren’t sure where to start, Mortgage Brokers Northern Beaches can help. Book a free consultation today by calling 0403 316 686 or visiting our website Mortgage Brokers Northern Beaches and get expert advice tailored to your situation—your dream home is closer than you think!