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Tips and how-tos

11 tips for saving your home deposit

Roisin Broderick, Content Specialist, Keystart

16 Jan 2020 • 2 min 30 sec
Man in kitchen

Saving the deposit for your home may seem like mission impossible, but the good news is, it doesn’t have to be. All you have to do is keep it simple and follow a savings plan.

And at Keystart, our home loan deposits start from as low as 2%, which makes the dream of home ownership much more achievable.

Use our How much can I borrow tool to calculate how much deposit you may need to save. You may qualify for the first home owners grant. It’s currently worth $10,000 and at Keystart you can put it towards your deposit so you may wish to check this first.

Guide to first home buyer benefits

Once you know how much you need to set aside for your deposit and fees and charges, we've put together some basic tips to help you reach your home deposit goal quicker.

11 quick tips to get started

1. Open a separate bank account

Have your savings put directly into this account every payday. Consider making that account difficult to access too. Perhaps no card or internet access for your savings account. 

2. Pick an app!

There are some excellent budgeting apps out there to help you track your spending habits. Seeing your spending trends can be a big eyeopener to find out where your money is really going. Canstar's review of budgeting apps

3. Prepare a savings plan and stick to it

Work out how much you spend each week, including rent, food, gas, water, power and phone bills, credit card and other debt payments, clothes, petrol, insurance, entertainment and an amount for unexpected bills. Deduct this amount from your wage and the rest can be your savings. Not happy with how little is left over? Go back over your spending and see if there is any area where you can cut back your spending.

4. Pay off your credit cards

Have you opened 'spare' credit cards for travel, online shopping or 'just in case'? Credit cards make spending very easy - and you'll be paying a lot of interest and fees to go with it. Work at paying off your credit cards or reducing the credit limit to something manageable. The amounts you were paying in repayments can become savings. 

5. Pay your debts on time

Making sure you pay your debt repayments on time reduces extra fees and charges.

6. Menu planner time!

We all know how expensive groceries are - and shopping when you're hungry or only have a vague idea of what you need is a recipe for cash register shock. Spend some time writing a weekly menu and a shopping list before you buy your groceries. Not only will you spend less but you'll also be thankful when you get home late from work and have everything you need for dinner. 

There are some great resources for menu planning - with everything from spreadsheet templates to apps. Taste have recipes to help you build your plan - then creates a shopping list for you. 

7. Grow your own vegies

If you have space, grow your own vegetables and herbs. Even if you keep it to tomatoes, basil and mint -you'll still be cutting back on your spending - and you might be tempted to cook more with lovely fresh ingredients. 

8. Buy items in bulk

You may save money by buying things like washing powder, kitchen wrap, toilet paper and nappies in bulk. 

9. Shop around for the best deals

With internet research, it's easier than ever to shop around. You might want to review your insurance or your phone plan to see if you can get a better deal.

10. Goodbye takeaway

Consider cutting back on eating out and buying takeaway. Have something on your menu planner that is easy to put together (and yummy) for the nights you'd usually order out. Taking your lunch to work is an easy win - and a great way to see your savings increase.

11. Sell things you don’t need

All of us have things in our homes that we no longer need. Can any of these be sold? Consider a garage sale or selling online to create some extra savings. 

Get a team behind you!

Share your home buying dreams with your friends and family, so they can support you.

You've got this

Even if you only follow a handful of these suggestions, you’ll be that much closer to saving for your dream. Keep looking ahead and never give up.  

How much can I borrow

Keystart recommends that you seek your own independent financial advice prior to making any decisions about your financial needs. Any examples given in this post are provided for illustrative purposes only.