Saving for a house deposit is the biggest hurdle for most first-home buyers — especially when you're juggling rent, bills, and real life. You're not alone if you’ve typed "how to save for a house deposit while renting" into Google at 2am and felt completely stuck.
But here’s the good news; with the right approach, you can better understand your options, set a realistic goal, and plan your next steps.
Why Saving a Deposit Feels So Hard Right Now
Let’s be honest, property prices have increased over time, while many buyers are also managing rising living costs. So it’s no surprise that many Aussies in their 20s and 30s feel overwhelmed. You're told to save 20% for a deposit, but then you find out that doesn’t include stamp duty, conveyancing, inspections, lender fees, or even the furniture you’ll need to buy when you move in.
Worse still, lenders assess applications using standardised benchmarks such as HEMS, which may differ from how individuals track their own spending. Benchmarks like HEMS (the Household Expenditure Measure), assess how much they think you spend, which might be higher than your actual budget. That means the loan you can afford in your head might not match what a lender offers you on paper.
So what can you actually do?
Smart, Realistic Ways to Build Your Deposit
Let’s keep it real: you don’t need to give up every coffee or lock yourself in a money dungeon. But you do need a plan.
- Start with real numbers. Go through the last three months of your spending and work out what’s essential, what’s flexible, and what you can trim. This gives you clarity, not guilt
- Consider using a separate savings account to set money aside regularly, based on options available to you
- The First Home Super Saver Scheme (FHSSS) allows eligible buyers to withdraw certain voluntary super contributions for a first home. Independent financial or tax advice is recommended before using this scheme
- Cut back, not out. Small lifestyle tweaks (like switching to meal prepping, cancelling unused subscriptions, or pausing holidays temporarily) may help some buyers progress toward their savings goal over time
- Check if you're eligible for help. Depending on your state, you may qualify for a First Home Owner Grant, stamp duty concessions, or the First Home Guarantee, which may allow eligible buyers to purchase with a lower deposit and avoid LMI, subject to government and lender criteria
It's Not Just About Saving — It’s About Planning
Here's something many first-home buyers don’t realise: not all your savings go toward the deposit. You’ll also need to budget for costs like stamp duty (unless exempt), legal fees, inspections, moving costs, and lender charges. Planning for these upfront costs early can help reduce the risk of unexpected expenses later.
Your Loan-to-Value Ratio (LVR), how much you borrow compared to the property price, also affects whether you’ll pay LMI or qualify for government support. So the earlier you understand these mechanics, the stronger your position will be.
Feeling Overwhelmed? You’re Not Alone
Saving for a deposit while renting feels hard because it is hard. But it’s not impossible, and thousands of Aussies do it every year by breaking the goal into manageable steps. You don’t need to be perfect. You just need to start.
We’ve created a complete e-book, the First Home Buyer Guide, that walks you through the entire journey from savings to settlement, with tools like a Budget Builder, Deposit Tracker, Grant Eligibility Checker, and more.
Ready to Take the First Step?
Download the free First Home Buyer e-book today. It’s packed with practical tools, real-world strategies, and practical tools in plain-English to help you understand the process and your options. Whether you're just getting started or already on your way, this guide will be your best mate throughout the journey.
Download the First Home Buyer e-book now and start turning your "one day" into "day one".
