In this article, we will give you practical steps on how to save a house deposit in 12 months. Saving a house deposit in just a year might sound ambitious, but with the right strategy, it’s completely achievable. Whether you’re a first-home buyer or a determined upgrader, this guide breaks down advanced, government-backed strategies to get you over the line faster.
One of the smartest moves you can make is working with a trusted mortgage broker in Brisbane who understands the local market and lender landscape. They can help tailor your savings plan, identify the best loan options, and maximise government grants, giving you the confidence and clarity needed to reach your goal sooner.
1. Set A Clear Savings Target
When it comes to saving a house deposit in 1 year, clarity is key. Before you start cutting back on coffee or picking up extra shifts, you need to know exactly what you’re aiming for. Having a defined savings target gives you direction, helps you stay focused, and ensures you’re financially prepared for more than just the deposit itself.
Understand What Makes Up A House Deposit In Australia
In Australia, most lenders require a minimum deposit of 10% to 20% of the property’s purchase price. However, it’s not just about the deposit. First-home buyers also need to factor in associated buying costs, which typically add an extra 5% to 7% to your total outlay. These include:
- Stamp duty (unless you’re eligible for exemptions or concessions)
- Legal fees and conveyancing
- Pest and building inspections
- Loan application fees
- Lenders Mortgage Insurance (LMI) if your deposit is less than 20%
- Moving and connection costs
This is where many buyers get caught out—they focus on saving just the deposit but forget these additional upfront costs. To successfully buy your first home, you need to budget for the full picture.
Read more: 16 hidden costs of buying a home
How much deposit do you need for a $300,000 house in Australia?
Let’s take a practical example to understand what saving a house deposit in one year really looks like.
- Property Price: $300,000
- 20% Deposit: $60,000
- Estimated Additional Costs (6%): $18,000
- Total Savings Target: $78,000
If you’re aiming to reach this goal within a year, you’ll need to save approximately $6,500 per month. That might sound daunting, but with a combination of smart budgeting, government grants, and a clear plan (which we’ll cover shortly), it’s achievable for many Australians, especially couples or households with dual incomes.
If your savings capacity is lower, you could consider a 10% deposit ($30,000), reducing your monthly target. But keep in mind this could mean paying LMI, which can add thousands to your costs unless you’re eligible for the First Home Guarantee (formerly FHLDS), which allows you to buy with just a 5% deposit and no LMI.
Read more: What is lenders mortgage insurance.
2. Audit Your Budget & Track Every Dollar
The next crucial step is to audit your budget and track every dollar. It’s one thing to set a savings goal—it’s another to figure out how you’re going to hit it. That starts with understanding exactly where your money is going and making every dollar work harder for you.
Zero-Based Budgeting: Give Every Dollar a Job
The most effective budgeting method for saving quickly is zero-based budgeting. This approach forces you to assign every dollar you earn to a specific purpose—whether that’s rent, groceries, entertainment, or your house deposit. Your income minus your expenses (and savings) should equal zero at the end of each month.
Unlike loose or “ballpark” budgeting, zero-based budgeting gives you total control. If you bring in $6,500 a month, you’ll know exactly how much of that needs to go toward fixed costs, how much can be spent, and how much must go directly to your deposit.
Saving a house deposit in 12 months requires focus and discipline, and zero-based budgeting helps eliminate “lazy money”—income that gets eaten up by untracked expenses. It forces you to decide: what matters more, another Uber Eats dinner or owning your first home?
Separate Your Needs from Wants
When auditing your budget, break it into two main categories:
Category 1 - Fixed (Essential) Expenses:
- Rent or mortgage
- Groceries
- Utilities (electricity, water, internet)
- Transport (fuel, public transport)
Category 2 - Variable (Discretionary) Expenses:
- Dining out and takeaway
- Entertainment and subscriptions (Netflix, Spotify)
- Shopping and travel
- Hobbies or impulse buys
Once you’ve categorised your spending, identify areas to trim. For example, cutting back on takeaway meals and switching to a cheaper mobile plan could instantly free up hundreds per month for your savings.
Use Budgeting Tools to Stay on Track
Fortunately, you don’t have to do this manually. There are several ASIC-approved budgeting apps that make tracking your money simple, secure, and surprisingly motivating. Here are a few trusted options:
- TrackMySPEND: An app developed by ASIC, allowing users to set spending limits and track expenses.
- MoneySmart Budget Planner: An online tool provided by ASIC to help users create a detailed budget by entering income and expenses.
- Frollo: Helps you visualise your financial habits and net worth over time.
Expert Tip: Set weekly check-ins to review your budget and make adjustments. Even a small recurring overspend can derail your plan if left unchecked.
3. Automate Your Savings
When it comes to how to save a house deposit in 12 months, consistency is everything. You don’t just need a good plan—you need to stick to it without fail. That’s where automation comes in. Automating your savings removes the friction and temptation of manual transfers and helps ensure your deposit grows on autopilot, week after week.
Open a High-Interest, Purpose-Built Savings Account
The first step is to open a high-interest savings account that’s designed to reward regular savers. Look for:
- No monthly account-keeping fees
- Bonus interest for making regular deposits and not withdrawing
- Withdrawal penalties or restricted access, which can help discourage you from dipping into your deposit fund
Many Australian banks, such as ING, UBank, AMP, or Macquarie, offer online savings accounts with interest rates over 4.50% p.a. when conditions are met. If you’re saving $6,000–$7,000 per month, you could earn hundreds in bonus interest over the year simply by choosing the right account and sticking to the rules.
Make sure the account is completely separate from your everyday spending account to reduce the temptation to “borrow” from your savings.
Automate Transfers on Payday
The golden rule of saving fast? Pay yourself first—before you spend a single dollar.
Set up an automatic transfer from your main account to your house deposit account to occur on the same day you’re paid. For example, if you get paid on the 1st and 15th of every month, automate a transfer for those exact dates. Treat it like a non-negotiable bill.
By removing the manual effort (and the emotional resistance) of deciding whether to save or spend, you ensure your deposit grows consistently. Even better, it builds a money habit that compounds over time.
Expert Tip: Name your savings account as something motivating, like “Our First Home” or “Deposit Fund,” to reinforce the purpose every time you log in.
4. Integrate Advanced Savings Strategies
Once you’ve set your goal, audited your budget, and automated your savings, it’s time to go a step further. If you’re serious about getting your house deposit within a year, implementing advanced strategies can fast-track your progress. These aren’t gimmicks—they’re smart, proven ways to stretch your savings further, especially when used alongside your core plan.
Round-Up Apps & Micro-Saving: Let Your Spare Change Work for You
Micro-saving tools and round-up apps are an effortless way to build momentum. These apps link to your transaction accounts, round up each purchase to the nearest dollar, and then sweep the difference into savings or investments.
Example: Buy a coffee for $4.30, and $0.70 is automatically moved into your savings.
Apps like Raiz, Up Bank, and Frollo make this process seamless. While a few cents might seem insignificant, round-ups can add up to $20–$50 per week, which could boost your annual savings by $1,000–$2,500, without you even noticing.
This is especially helpful if you’re already saving a fixed amount each month. These “micro-wins” accelerate your progress without impacting your lifestyle too much.
First Home Super Saver Scheme:
The First Home Super Saver Scheme (FHSSS) helps homebuyers in Australia by allowing them to save for a deposit faster using their superannuation fund. Here’s how it can help you buy a home in 12 months:
- Tax Benefits: You can make voluntary contributions (up to $15,000 per year and $50,000 total) to your super fund, which are taxed at a lower rate (15%) compared to your regular income tax. This means you keep more of your money.
- Faster Savings Growth: Because of the tax savings and potential investment returns in your super, your deposit can grow faster than in a regular savings account.
- Withdraw for a Home: After contributing, you can apply to release your savings (plus earnings) to use as a deposit on your first home, as early as 12 months after you start contributing.
This scheme is especially helpful for disciplined savers looking to boost their deposit within a year, while taking advantage of tax efficiency and super fund growth.
Bonus, Tax Return & Commission Strategies: Maximise Irregular Income
Many Australians receive irregular income throughout the year—be it work bonuses, commissions, tax refunds, or freelance side hustle income. If you’re trying to learn how to save a house deposit fast, this “extra” money is your golden opportunity.
Rather than absorbing it into your lifestyle, allocate 100% of irregular income directly into your house deposit fund. This strategy works because you’re not relying on it for day-to-day expenses, so saving it doesn’t feel like a sacrifice.
Example: Receive a $3,000 tax refund and a $2,000 work bonus? That’s $5,000 off your goal without touching your regular income.
5. Increase Income Streams: Earn More, Save Faster
Increasing your income is the next logical step if reducing expenses isn’t enough to hit your monthly savings target.
- Side hustles: Use your skills to generate extra income. Freelance filmmaking, tutoring, rideshare driving (like Uber or DiDi), or part-time retail work can add anywhere from $500–$2,000 per month to your income.
- Sell unused items: Look around your home—old phones, furniture, clothes, or baby gear can be sold on Gumtree, Facebook Marketplace, or eBay. One weekend of decluttering could net you $1,000+.
- Passive income: Consider small-scale passive income streams, like renting out a room, monetising a blog, or investing in dividend-paying shares. Keep in mind, however, that investments come with risk and may not suit a 12-month timeframe.
The more you earn, the more flexibility you’ll have to reach your deposit target sooner, or even afford a more expensive property.
6. Maximise Government Support
When working out how to save a house deposit in 12 months, many first-home buyers overlook a powerful tool: government support schemes. These incentives are designed to reduce the upfront cost of buying a home—helping you save less, buy sooner, and stretch your budget further.
If you’re eligible, these grants and concessions can knock tens of thousands off the amount you need to save.
First Home Owner Grant (FHOG)
The First Home Owner Grant is a one-off payment offered by state and territory governments to support first-home buyers purchasing or building a new home.
- In Queensland, eligible first home buyers can receive $30,000 towards the purchase or construction of a new home, including off-the-plan properties and homes built under a contract. This boosted grant is available for contracts signed between 20 November 2023 and 30 June 2025.
- Each state and territory has different rules around property value limits, type of property, and whether you’ve owned a home before.
Check your state’s criteria on the government’s website.
First Home Loan Deposit Scheme (FHLDS) — Now Part of the Home Guarantee Scheme
Saving a 20% deposit is tough, especially in a tight timeframe. The First Home Guarantee (formerly FHLDS) allows eligible first-home buyers to purchase a home with just a 5% deposit, without needing to pay Lenders Mortgage Insurance (LMI)—a potential saving of $10,000–$25,000.
Key Benefits:
- Only a 5% deposit is required.
- No LMI, even if you borrow over 80% of the property’s value.
- Can be used with other schemes like the FHOG and stamp duty concessions.
Important: The scheme has limited places (35,000 per year), so it’s essential to apply during your loan pre-approval phase to secure a spot before they run out. Your mortgage broker can guide you through the application process and check eligibility based on income thresholds and property price caps.
Stamp Duty Concessions
Stamp duty is one of the largest upfront costs when buying a home in Australia. Fortunately, there are generous concessions available to first-home buyers in many states, especially in NSW.
NSW First Home Buyers Assistance Scheme:
- No stamp duty on homes valued up to $650,000.
- Discounted (concessional) stamp duty for homes valued up to $800,000.
This can save you up to $25,000 in upfront costs, significantly reducing how much you need to save overall.
If you’re serious about how to save a house deposit in 12 months, tapping into available government support is non-negotiable. These schemes can shorten your savings timeline by months—or even years—by slashing the deposit required and covering key costs like stamp duty or LMI.
7. Choose The Right Savings Vehicle
The right savings vehicle can help you grow your money faster, minimise the temptation to spend, and protect your hard-earned funds from unnecessary risk.
Let’s break down the best options available to Australian first-home buyers.
High-Interest Savings Accounts
This is the most popular and accessible option for short-term saving goals like a house deposit.
Look for a high-interest savings account that offers:
- Interest rates above 3.5% p.a. (as of 2025, some banks offer up to 5% p.a. with conditions)
- No monthly account fees
- Bonus interest for regular deposits and limited withdrawals
These accounts are offered by most major banks, credit unions, and neobanks such as ING, UBank, Macquarie, and Up Bank. Be sure to read the fine print. Many providers offer attractive introductory rates that drop sharply after a few months.
Expert tip: Choose an account where the bonus interest conditions (like depositing $1,000/month or making no more than one withdrawal) align with your savings behaviour. This way, you won’t miss out on the higher rate.
Term Deposits & Notice Saver Accounts
If you’re a disciplined saver who doesn’t need immediate access to funds, a term deposit or notice saver account can offer more competitive returns.
- Term Deposits: Lock your funds away for a fixed term (e.g. 6–12 months) at a set interest rate—often above 4% p.a.
- Notice Saver Accounts: These offer slightly higher interest rates than standard savings accounts but require 30–90 days’ notice before withdrawals.
The advantage? Your deposit is protected and guaranteed under the Government Deposit Guarantee Scheme (up to $250,000 per account holder per institution), and you won’t be tempted to dip into it.
Watch out: Early withdrawals from term deposits may come with penalties or reduced interest, so only use these for the portion of your savings you can afford to set and forget.
Investment Options (For Advanced Savers)
If you’re comfortable with risk and already have a solid emergency fund, you might consider allocating a small portion of your deposit savings to investments like:
- Exchange-Traded Funds (ETFs)
- Blue-chip Australian shares
- Managed funds or robo-advisors
These can offer returns higher than savings accounts—historically 6%–9% p.a. over the long term. However, market fluctuations make them unsuitable for your entire deposit when you’re working with a fixed 12-month timeline.
Best practice: Limit exposure to 5%–10% of your total savings goal, and only invest what you can afford to lose or leave untouched beyond your target settlement date.
8. Work With A Mortgage Broker
Understanding how to save a house deposit in 12 months is just one piece of the puzzle when buying your first home. The next crucial step is securing the right home loan, and this is where a mortgage broker can make a real difference.
Why Use a Broker?
Navigating the home loan market alone can be overwhelming. Lenders offer hundreds of products, each with different rates, fees, and features. A broker acts as your personal guide to this complex landscape by:
- Accessing wholesale interest rates, which are not always available to the public, which can significantly reduce your monthly repayments.
- Matching you with lenders and loan products tailored to your financial situation and goals means no one-size-fits-all approach, just a loan that fits your budget and timeline.
Saving you thousands over the life of the loan by negotiating better terms, finding fee waivers, and advising on refinancing opportunities.
Understand Lender Policies
Not all lenders assess your borrowing power the same way. It’s important to understand their serviceability buffers, which are stress tests lenders apply to your income and expenses to ensure you can handle rate rises.
Some lenders use a 2.5% buffer on the loan interest rate, while others require a more conservative 3% buffer. This difference can impact how much you can borrow.
Also, check whether the loan offers offset accounts or redraw facilities. An offset account links your savings to your mortgage, reducing the interest payable and helping you pay off your loan faster. Redraw lets you access extra repayments if needed—both can be powerful tools in managing your finances.
A knowledgeable mortgage broker will explain these details and help you select a lender whose policies suit your savings strategy and long-term goals.
Compare Bank Offers
While online comparison sites like ASIC’s Credit Finder, Canstar, and RateCity are great starting points, they often show headline rates without all the fine print.
- Use these tools to shortlist competitive home loans.
- Then, consult your broker to validate the options—brokers can spot hidden fees, potential traps, and can negotiate with lenders on your behalf.
This two-step approach ensures you get a transparent, competitive deal without falling for marketing gimmicks or low introductory rates that quickly expire.
Read more: Talk to an experienced mortgage broker today.
FAQs: How To Save A House Deposit In 12 Months In Australia
How much deposit do I need to buy a house in Australia?
Most lenders require between 10% and 20% of the property price as a deposit. For first-home buyers, a 20% deposit helps avoid lenders mortgage insurance (LMI), but some schemes allow deposits as low as 5%.
Can I save a house deposit in just one year?
Yes, it’s possible with a clear savings plan, disciplined budgeting, automation, and possibly supplementing income. Government grants and schemes can also reduce your upfront costs.
What are the biggest expenses to include besides the deposit?
Besides the deposit, budget for stamp duty, legal fees, building inspections, moving costs, and loan application fees. These usually add around 5% to 7% on top of your deposit.
Are there government grants to help first-home buyers?
Yes. The First Home Owner Grant (FHOG), First Home Loan Deposit Scheme (FHLDS), and state-based stamp duty concessions can significantly reduce upfront costs. Eligibility varies by state.
What's the best way to track my savings progress?
Using ASIC-approved budgeting apps can help you track income, expenses, and savings progress accurately.
Should I use a high-interest savings account or term deposit?
For a 12-month goal, a high-interest savings account is flexible and accessible. Term deposits offer higher fixed rates but penalise early withdrawals, so they’re better for funds you won’t need soon.
Can I invest my deposit savings in shares or ETFs?
You can, but it’s risky over a short 12-month timeframe. If you do, limit investments to 5%–10% of your total savings to avoid market volatility derailing your goal.
How can a mortgage broker help me save for my deposit?
Mortgage brokers can find you the best loan options, including lower interest rates and features like offset accounts, which can save you money and reduce how much you need to save upfront.
What are some practical tips to cut expenses and save faster?
Cancel unused subscriptions, cook at home more, negotiate bills annually, and sell unwanted items. Increasing income through side gigs can also boost your savings rate.
How do round-up apps help with saving a deposit?
Apps like Raiz or Up Bank round up your everyday purchases to the nearest dollar and automatically transfer the spare change into a savings account, helping you save effortlessly over time.
Final Thoughts On How To Save A House Deposit In 12 Months.
Saving for a house deposit in a year isn’t just about crunching numbers—it’s about embracing a lifestyle change. It requires clear goals, disciplined budgeting, smart automation, and sometimes thinking outside the box with advanced savings strategies.
While the challenge might seem daunting at first, the good news is that many first-home buyers have successfully done it, and so can you.
By setting a clear savings target, auditing your budget to track every dollar, automating your deposits, and tapping into government grants and professional advice, you put yourself on the fastest track to homeownership. Remember, this process is not about perfection but consistent, intentional steps.
Partnering with a mortgage broker to find the right loan and savings vehicle can also ease the journey, saving you money and stress along the way.
So start today. Whether it’s cutting back on discretionary spending, picking up a side hustle, or simply automating transfers to a high-interest account, every small action adds up.
Your dream home is closer than you think. With persistence, planning, and the right support, you’ll be turning those keys in just 12 months.
Next Steps And Getting A Home Loan
Our team at Hunter Galloway is here to help you buy a home in Australia. Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.
If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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