Saving for a home can feel like a big task, but with the right approach, it’s easier than you think. This guide will show you some simple, practical tips to move your savings in the right direction.

Let’s start with the basics

Think of saving for a home deposit like constructing a house - you need a strong foundation before you build the walls. To set yourself up, try this first:

Set your deposit target

When applying for a home loan, you’ll need a deposit. Typically, a deposit is 20% of your home’s purchase price, but this can vary between lenders. At Coastline, we have home loan options starting from as little as a 10% deposit.

To get a clear idea of what homes cost in your area, you can research local property sales. Another approach is to use our home loan calculators to estimate how much you can afford to borrow and search for properties in your price range.

Create a home-saving budget

Once you have your deposit goal, create a budget to track your spending and savings. This will show you how much you can set aside for your home deposit each payday. If you’re new to budgeting, our Budget Planner Calculator can help you track essential expenses and figure out how much you can save. Budgeting also makes applying for a home loan easier, as banks will ask for details of your income and your expenses to ensure you can afford the loan.

Open a dedicated savings account

A dedicated savings account keeps your home deposit separate from everyday spending. Consider opting for a high-interest savings account to earn interest on top of your savings. As the old saying goes, every dollar counts. Automating transfers from your main account each payday will also help you stay on track and avoid spending your savings on other things.

Creative ways to build your home deposit

With your foundation in place, it’s time to start building brick by brick. Or, in this case, dollar by dollar. To add to your savings, try some of these strategies:

Have a “no-spend” month

Challenge yourself to a month of only spending on necessities like rent, groceries, and bills. Funnel what you’d usually spend on extras like dining out, entertainment and shopping into your savings account.

Try a “free” month

Instead of spending on entertainment, find free activities. Borrow books and toys from the library, go to community events, or look for free live music. If you have kids, get them involved. Write a list of fun family activities to try without spending a dollar, freeing up your cash for your home deposit.

Find extra income sources

If you want to build up your deposit faster, consider picking up a side gig. Jobs like food delivery, dog walking, cleaning or furniture assembly can boost your income without needing special skills.

Sell unused items

Selling items you no longer need can bring in extra cash for your deposit while decluttering your current home - a double win!

Tools and tips to make saving for a home easier

Saving for a home deposit doesn’t have to be a struggle. Let's look at some tools and smart strategies to make the job easier.

Budget Wise account

Dipping into your savings when bills arrive? Our Budget Wise account can help by dividing your bill payments into smaller, manageable amounts. You deposit a regular payment each payday, and when your bills arrive, the money is already there. Plus, if you send us your nominated bills, Budget Wise will handle the bill payments for you.

Minimise debts

Reducing your debts not only saves you money on interest but also improves your chances of getting a home loan. Pay off high-interest debts first or consider consolidating multiple debts into one loan with a lower interest rate. This will simplify your payments and help you save on interest. You may also improve your credit score - putting you in a good financial position when it’s time to apply for a home loan.

Take advantage of first home-buyer grants and schemes

There are government grants and schemes designed to help first-time buyers:

• The First Home Super Saver Scheme (FHSS) allows you to save for a home by making extra contributions to your super, which are taxed at a lower rate. There are some terms and conditions, so it’s best to check the Australian Taxation Office (ATO) website to decide if the scheme is right for you.
• First Home Owner (New Home) Grant is a $10,000 grant for eligible first home buyers who build or buy a new home or buy a substantially renovated property.
• First Home Buyers’ Assistance Scheme offers a full exemption or reduced rate of transfer duty for eligible first home buyers in NSW.

Learn about applying for a home loan

Saving for a home deposit may seem like a big project, but with the basics in place and a few smart tools and strategies, you’ll get there faster than you think. Plus, you’re never alone when working towards your goals! If you have questions or are wondering if a scheme or grant is right for you, contact us. Our friendly team are here to help.

1. Explore home loans
2. Give us a call
3. Visit a Coastline Branch