1. How much you need to save per city?
The amount you need to save for a home loan deposit depends on the property prices in your city. In Australia, a standard deposit is 20% of the property price to avoid Lenders Mortgage Insurance (LMI). However, first-home buyers may qualify for government schemes that reduce this requirement.
Below is an estimate of how much you’d need to save for a 20% deposit based on median property prices (2024) in major Australian cities:
2. How long will it take to save?
The time required to save for a home loan deposit depends on your city, savings rate, and income level. Below, we estimate the time needed to save a 20% deposit, assuming an individual saves 30% of an average Australian salary ($100,000 per year), which equals $30,000 per year.
Estimated Time to Save for a 20% Deposit
3. Deposit Strategies: 20%, 5%, Even 2% with Schemes
Government schemes like the First Home Guarantee (5% deposit scheme) can significantly reduce your savings timeline. Here’s how long it would take to save for a 5% deposit with the same savings rate:
4. First-Home Buyer Government Schemes (State-Based)
Federal Schemes (Available Australia-Wide)
- First Home Owner Grant (FHOG): Up to $10,000-$20,000, depending on the state.
- First Home Guarantee (5% deposit scheme): Allows eligible buyers to purchase with a 5% deposit.
- Super Saver Scheme: Allows withdrawal of up to $50,000 from voluntary super contributions.
State-Based Grants & Concessions
Buying your first home in Australia requires careful planning and knowledge of available grants, savings techniques, and political changes. By understanding how much you need, how long it will take, and utilising government incentives, you can significantly reduce your savings time and achieve homeownership faster.
