5 tips on property deposit saving for prospect homeowners to consider

Stimulus measures such as the HomeBuilder Scheme did bring forward the buying decisions, but they remain active in the market, even after last year’s strong property price growth.

Compared to the period prior to the pandemic, new loan commitments to owner occupier first home buyers are at their highest level since October 2009, according to the Australian Bureau of Statistic Lending Indicators for December 2021.

Saving remains a vital approach

Last year’s minor adjustments to mortgage serviceability calculations had not resulted in a significant change in loan approvals. However, it remained vital for prospective property owners to show genuine savings. Lenders always want to see a genuine savings history, including funds that represent at least 5% of the property’s purchase price.

Banks generally recognise that it is difficult to save the deposit for your first  property, because of the added expenses of paying rent. However, it is never a bad thing for any potential borrower to show that they have been diligently saving funds over a period of time, even if those funds represent only  five per cent of the purchase price.

Top 5 property deposit saving techniques

Cut up the credit cards

Lock up your credit cards and pay cash every time to help prevent overspending. Before you you hand over your hard-earned cash, think do you really need to buy this?

Prepare a budget – and stick to it

Prepare a budget – or work with someone who can help you create one – and stick to it. Be realistic and honest about your income and expenditure as well as your ability to save.

Do you really need a new car?

Personal loans for cars can be a big stain on your borrowing capacity. Before you borrow $50,000 and pay exorbitant interest rates on a car loan, consider whether you can ‘make do’ with a more  affordable vehicle to achieve your home ownership goal.

Forfeit the expensive holiday

We are all itching to travel again, but prospective property owners need to prioritise putting those funds towards a deposit and opt to holiday somewhere more affordable instead.

Consider selling unused items

Everyone has things lying around that they don’t want, don’t need, or simply don’t use.

Some of these items could actually be worth selling, especially if they’re great quality and in excellent condition, such as furniture, musical instruments, baby gear, designer clothes, old bikes in the shed, etc. Plus, it’s never been easier to do so.


Louisa Sanghera is 2021 Australian Mortgage Awards Independent Broker of the Year and Zippy Financial Director and Principal Broker.