How to Save for a House Deposit 💸

There’s more to it than you think
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    Approximately 40% of home loan applications were rejected in December 2018 based on a survey of 52,000 households completed by 'DigitalFinance Analytics DFA'. In 2017 to 2018 Hunter Galloway submitted 342 home loan applications and had 8 applications rejected, giving a 2.33% rejection rate.
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If you want to Save a House Deposit (fast) there’s one thing you need to know:

Traditional methods like setting a budget, not going on holidays and eating 2-minute noodles to cut down costs don’t have the same impact that they used to.


What CAN you do to quickly save up a house deposit?

First Home Buyer Guide

The Deposit Kickstart.

It’s a simple strategy that I used to buy my first home when I was 23.

And in today’s case study I’m going to show you the exact step-by-step process that I used.

buying home as single person

This is the unit complex where I bought my first home.


No One Wants To Eat 2 Minute Noodles and Miss Out on All the Fun

The majority of articles out there offer you “2-minute noodle” tips.

That is, they say you need to cut your spending back as much as possible and live just on 2-minute noodles for a year… or two.

And while I agree that managing expenses are important, I think it is more important to have some balance to your life and not miss out on all the fun.

The Deposit Kickstart method isn’t going to be for everyone, but I can say it has helped me and over 113 other Hunter Galloway clients get into their first home.

best home loan brisbane

So without any further ado, let’s jump right in. 


How to Save for a House Deposit 💸


Step 1: Decide a Purchase Price

This may sound simple but stay with me.

If you want to buy a home, you need a deposit and for you to know how much deposit you need you to need to know what you are going to spend on that home.

In other words, deciding your purchase price is the first step in determining how much you need in savings.

building a house brisbane

Make sense?

Like Tony Robbins says, setting goals is the first step in turning the invisible into the visible.

It can also be a good idea to decide on a lower entry point into the market and work your way up from there.

This will allow you to have a smaller deposit to get into the market much faster.

Purchase Price


Complete Step 1: Decide your Purchase Price

Complete Step 1: Decide your Purchase Price

Read More: First Home Buyers COMPLETE [step-by-step] Guide


Step 2: Choose a Deposit %

Here’s the deal:

When you buy a home you don’t need a 20% deposit

…and you can buy a place with as little as 8-10% deposit.

Try our deposit calculator below:

Deposit Calculator
An easy way to see how your deposit translates to your home price and monthly payment.
Deposit ($) (required)
Rate (%) (required)
Term (Yrs) (required)
Deposit Amount %:
How much deposit is needed?
While putting a 20% deposit can improve your chances of getting approved, help you avoid Lenders Mortgage Insurance and possibly secure you a lower interest rate - you can buy a home with as little as 8-10% deposit - or none if you have the help of a guarantor!
Home Price ($)
Monthly Payment ($)
Get in touch with our team today

Note: The information provided by the calculator is intended to provide illustrative examples based on stated assumptions and your inputs. Calculations are meant as estimates only and it is advised that you consult with a mortgage broker about your specific circumstances.

On the other hand, if you do have 20% deposit you do avoid paying Lenders Mortgage Insurance.

(Which can add up to thousands of dollars)


In my case, I bought my first home with the minimum deposit necessary so I could get into the market faster than waiting to save up a 20% deposit.

That’s why I decided to buy a home with 8-10% deposit.

% Deposit %


Complete Step 2: Decide how much deposit you will put down: 8% to 20%.

Complete Step 2: Decide how much deposit you will put down: 8% to 20%.

Read More: 5 First Home Buyer Myths & Mistakes Revealed ✨


Step 3: Set a Deposit Goal

Like anything in life, having a dream is one thing but making it a reality through goal setting is key. In fact, your Deposit Goal is 10x more important than anything else.

To put it another way, you really need to set a deposit goal and work back from there.

Here’s the approach that worked best for me.

I wanted to buy a first home for $330,000 and needed to save an 8% deposit.

You would calculate this as $330,000 x 0.08 = $26,400.

On the other hand, if you wanted to buy a $550,000 house and save a 20% deposit.

You would need to calculate this as $550,000 x 0.20 = $110,000.

Purchase Price
x % Deposit
= Deposit Goal


Complete Step 3: Work out how much bank deposit you need to get started.

Complete Step 3: Work out how much bank deposit you need to get started.

Read More: How I bought my first home when I was single



Step 4: Calculate Stamp Duty & Other Costs

Good news and bad news.

The good news is that if you are a first home buyer, in most states you do not need to pay Stamp Duty…

…And bad news is that you still need to pay transfer fees and other government charges.

You can quickly calculate what these look like by talking to your Mortgage Broker or looking at this link.

$ Stamp Duty + Other Fees 

If I was looking at buying a home for $330,000 I would need to factor in $872 in government fees.

home loan fees

Home loan fees can add up, so check with your mortgage broker up front to know what they are.

For a first home buyer, I would factor in a total of 1% in other expenses.

This includes things like solicitor fees, bank fees, building and pest and other costs.

So realistically if I was buying for $330,000 I’d factor in a total of $3,300 in other fees that I would need to have for my house deposit.

stamp duty and other costs

Stamp duty and other costs can add up to 1% of the purchase price.

Read More: 11 Hidden Costs of Buying a Home


Step 5: Work out your Savings Goal

Time to put it all together.

Add the deposit goal, to the stamp duty and other fees to determine your total saving goal!

In the case of the above, take $26,400 plus $3,300 to make a total savings goal of $29,700!

Deposit Goal + Stamp Duty & Other Fees = Total Saving Goal
$26,400 $3,300 $29,700

Now I have a total savings goal of $29,700 to get me into my first home!

hunter galloway mortgage brokers

Work out your savings goal, and you can start working towards that dream first home!

Read More: Property Market Research | 12 Steps to Research a Home in Brisbane


Step 6: Set a Monthly Target

Do you know how to eat an elephant? 🐘

One bite at a time.

So how do you save for a home?

One dollar at a time.

In other words, take your total Saving Goal and set a monthly Saving Target to make it much more achievable.

brisbane property options

Your savings goal can help keep you on the path to buying your first home

Work out your saving goals by dividing it by the total months until you want to have your deposit saved.

  • 🗓 12 months is 1 Year
  • 🗓 24 months is 2 Years
  • 🗓 36 months is 3 Years


Saving Goal / Months Remaining = Monthly Saving Goal
$29,700 12 Months $2,475
$29,700 24 Months $1,238
$29,700 36 Months $825


If this Monthly Saving Goal seems too high, think about extending the months until you want to achieve it.

Or jump back to Step 1 and look at a cheaper property to reduce the deposit required.

Bonus Tip: Weekly Saving Target

If you prefer to set weekly savings targets just divide by the number of weeks instead of using months

  • 🗓 52 weeks is 12 months, is 1 year
  • 🗓 102 weeks is 24 months, are 2 years
  • 🗓 156 weeks is 36 months, are 3 years


Saving Goal / Weeks Remaining = Weekly Saving Goal
$29,700 52 Weeks $572
$29,700 102 Weeks $292
$29,700 156 Weeks $191


I find matching how you are paid to your savings goal works best.

So if you are paid weekly, use the weekly savings goal.

On the other hand, if you are paid monthly, use the monthly savings goal.

Take your savings goals and break it down into monthly, and weekly targets.

Read More: 13 Mistakes nearly all first home buyers make


Step 7: Get Cracking

The best way to save is to pay yourself first.

In other words:

Put your savings aside as soon as you are paid.

This way you quarantine your Monthly Savings Goal, and then live off the rest.

Read More: 13 Mistakes nearly all first home buyers make


Bonus: 5 Tips to Cut the Time to Save a House Deposit

5 Tips to Cut the Time to Save a House Deposit (1)

  • ✅ Pay Yourself First: Get your work to pay your Monthly Savings Goal directly into a special “House Deposit” bank account.
  • ✅ Save on the 1%’ers: Look at shopping at Aldi or Costco to cut down on your grocery expenses, saving $5, $10 there on generic brands can save you a bunch over time.
  • ✅ Cut back on your Rental Expenses: Reduce your rental expenses by moving into a smaller property, or get a flatmate to reduce your costs and save the difference.
  • You gotta keep it separated: Make sure your savings and your day to day funds are completely separate and don’t get mixed up.
  • Celebrate the quick wins: Once a month check in what you’ve saved to help you stay motivated. Seeing that cash bank up and get closer to your goals will keep you on track.


Bonus: Tips to Reduce Your House Deposit Amount 🏡

Short of begging, cheating or stealing there are a few other ways you can approach buying a home and getting some help from the people around you.

  • Look at your brothers, sisters, relatives or friends: If you can’t get in yourself, look at partnering with friends or family. A recent survey from CBA indicates the number of mortgage applications with greater than 2 applicants has increased to 67% in 2016.
  • Enquire at the Bank of Mum and Dad: Guarantor loans are on the rise, and according to figures from ANZ the number of parents guaranteeing their kids home loans has increased from 5% to 20% since 2013.
  • Think about Rentvesting: Rentvesting is about living where want and investing where you can afford. If you can’t afford the dream house you want or the suburb you’ve already dreamed then continue to rent or live there and invest the difference in buying an investment property further out.


Bonus: 3 Fast Tips to Increase your income 💰

  • Get a side hustle: We all know its costs lots to buy a home. If you’re finding it hard to save with your income, or don’t make enough income from your daytime job think about getting a side hustle like Uber or at a cafe. When I was saving for my first home I did some website work on the weekends to help bolster my cash savings faster.
  • ✅ Make some fast money on Gumtree or eBay: Have a look around the house and sell any old computer gear, phones, or junk you have laying around.  You could make a few hundred dollars quite easily!
  • ✅ Downgrade to a scooter, or look at public transport: Cars are a depreciating asset and sometimes one of the biggest expenses most first home buyers have. Do an audit to see if you are really using it that much and if you can consider getting a scooter or using public transport (or uber) to get around!


How to save Money for a home deposit

A few super easy BONUS tips to help you save up your deposit FAST!


Talk with an experienced broker to see what you can afford

Our team here at Hunter Galloway is here to help you buy a home in Brisbane. Nathan & Joshua Vecchio are Senior Mortgage brokers who specialise in making your home journey easy.

Mortgage Broker Brisbane

The Hunter Galloway Mortgage Broker Brisbane team is here to help. We have a team of home loan experts.

Unlike other mortgage brokers who are just one person operators, we have an entire team of experts to help make your home loan journey as simple as possible.

If you want to get started, please get in touch here and we can book a time that suits you – either a phone call information session or a face to face meeting (which doesn’t cost anything for you)


Further reading for Home Buyers…

Why Choose Hunter Galloway As Your Mortgage Broker?
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in 2017, 2018 and 2019
The highest rated and most reviewed
Mortgage Broker in Brisbane on Google
One of the lowest rejection rates

across Mortgage Brokers in Australia

Approximately 40% of home loan applications were rejected in December 2018 based on a survey of 52,000 households completed by 'DigitalFinance Analytics DFA'. In 2017 to 2018 Hunter Galloway submitted 342 home loan applications and had 8 applications rejected, giving a 2.33% rejection rate.
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