Print Post - How to Save a First Home Deposit in Just Over a Year

About this post

Post Description:

Saving for a first home deposit is often one of the most significant hurdles for new homebuyers. With property prices on the rise, especially in Rockhampton, it may feel like an overwhelming task. But the good news is, you can save for a deposit in just over a year if you have the right approach.

We will cover practical steps to help you save efficiently and prepare for your first home loan—without overstretching your finances.

Why Saving for a Deposit Is Important

A first home deposit plays a key role in the overall cost of buying a home. Having a larger deposit means:

Lower monthly mortgage repayments, which can make your loan more affordable.
Avoiding Lenders Mortgage Insurance (LMI), which is typically required if your deposit is less than 20% of the property's value.
It also increases your chances of getting better terms on your home loan, saving you money in the long run.

Setting a Realistic Savings Goal

The first step in saving for your first home deposit is determining exactly how much you need. In Queensland, most buyers aim for a deposit of 10-20% of the property's price. To calculate your goal, start by researching property prices in Rockhampton to understand the price range for homes that meet your needs.

Next, be sure to account for additional costs such as stamp duty, inspections, and home insurance, as these will add to your total expenses. Finally, set a clear target by breaking down your deposit goal into smaller, monthly savings targets. With a well-defined plan, you'll stay focused and motivated to reach your deposit faster.

How to Save for Your First Home Deposit

Now that you know how much you need, let’s look at how to reach that goal within a year:

Automate Your Savings

Set up an automatic transfer to your savings account right when you get paid. This way, saving becomes routine and effortless.

Prioritise Your Savings

Treat saving for your first home deposit as a priority. Whenever you receive a bonus or tax refund, add it straight to your savings.

Cut Back on Non-Essential Expenses

Review your spending habits and make small adjustments. Reducing unnecessary purchases—like frequent takeout or unused subscriptions—can add up over time.

Take Side Job

If you have the capacity, consider taking on a side job, freelance work, or other income-boosting activities. Every extra dollar saved helps.

Using Government Schemes and Grants to Help Save

There are government schemes that can speed up your savings for a first home deposit:

First Home Owner Grant (FHOG):

If you’re purchasing a newly built property, you may qualify for the First Home Owner Grant, which can provide up to $15,000 $30,000 to help with your purchase.

First Home Super Saver Scheme (FHSSS):

You can contribute to your superannuation fund to save for your first home deposit. These voluntary contributions benefit from tax advantages, allowing your savings to grow faster.

Using these schemes helps reduce the time needed to save, making it more feasible to reach your goal in just over a year.

How We Can Help

We’re here to guide you through every step of the mortgage process. Our expert team, led by John MacMaster, is ready to assist you with:

Helping you get pre-approved for a loan, so you know exactly what you can borrow based on your savings and income.
Explaining how government schemes like the First Home Owner Grant and FHSSS can support you in saving for your deposit.
Finding the perfect mortgage for your budget, ensuring you get the best rates and terms available.

With Finance First Mortgage Brokers by your side, you won’t be alone on your journey to homeownership.

Conclusion

Saving for your first home deposit in just over a year is possible with the right planning and discipline. By setting clear savings goals, sticking to a budget, and taking advantage of government schemes, you can make homeownership a reality sooner than you think.

If you're ready to take the next step, Finance First is here to help. John MacMaster and our team will guide you through the process and help you get the best deal on your first home loan.