What to Consider When Saving for Your House Deposit

Buying a house is the biggest purchase many of us will ever make and so it carries a significant financial responsibility. The first part of the buying process involves saving up for the house deposit. Most deposits in Australia are worth 20% of the property’s purchase price. Saving and having a deposit which amounts to 20% of the purchase price will allow you to avoid paying Lenders Mortgage Insurance, an additional fee that protects lenders which can be up to tens of thousands of dollars. Here are important factors to consider while saving for your home deposit.

Savings Needed

When saving for a deposit, settling any outstanding debts is a priority. Any debts hanging over you will substantially compromise your ability to save. Saving enough for a house deposit is for many, the greatest financial challenge they will face in their lifetime. After picking your range and the type of house you’ll be buying, you can set your goal amount you need to save for your deposit and work toward this.

If you are a first-time homeowner, you may be eligible for the First Homeowners Grant. The grant aims to offset the GST associated with a house purchase – its value changes in each state and territory.

Expectation Management and Expenses

Expectation management is something you’ll need to come to terms with when saving for a deposit. Consider how much you want to save and how much you can feasibly save in your current financial situation. Let your financial circumstances guide your saving habits and real estate ambitions.

A hurdle faced by those saving for a deposit is efficient expense management. Without complete clarity of expenses through realistic budgeting, your saving efforts will not be as accomplished as they otherwise could be. Routinely reassess your budget – as various irregular expenses come and go (e.g. car registration, insurance, etc.), your ability to save will fluctuate. Staying on top of the situation as it shifts will maximise your ability to put funds away.


Timing is always of crucial consideration during the deposit saving process. When saving for your deposit, you must pay mind to the housing market. Staying aware of market trends will give you the best sense of when to put your deposit down, thereby getting the best house for your money as you can.


Saving for your house deposit is sure to be one of the most significant commitments you’ll make during your life. Thorough planning and budgeting will ease the process. For more advice on saving for a house deposit, reach out to a member of the Morrows Lending Solutions team.

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