Guide to saving for your home loan deposit in Australia

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:

City	Median Property Price	20% Deposit
Sydney	$1,100,000	$220,000
Melbourne	$780,000	$156,000
Brisbane	$750,000	$150,000
Perth	$630,000	$126,000
Adelaide	$650,000	$130,000
Hobart	$630,000	$126,000
Canberra	$850,000	$170,000
Darwin	$600,000	$120,000

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

City	20% Deposit Required	Annual Savings ($30,000/year)	Time to Save (Years)
Sydney	$220,000	$30,000	7.3 years
Melbourne	$156,000	$30,000	5.2 years
Brisbane	$150,000	$30,000	5.0 years
Perth	$126,000	$30,000	4.2 years
Adelaide	$130,000	$30,000	4.3 years
Hobart	$126,000	$30,000	4.2 years
Canberra	$170,000	$30,000	5.7 years
Darwin	$120,000	$30,000	4.0 years

Reducing the Time to Save

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:

City	5% Deposit Required	Time to Save (Years)
Sydney	$55,000	1.8 years
Melbourne	$39,000	1.3 years
Brisbane	$37,500	1.25 years
Perth	$31,500	1.05 years
Adelaide	$32,500	1.1 years
Hobart	$31,500	1.05 years
Canberra	$42,500	1.4 years
Darwin	$30,000	1.0 year

3. 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

State	First Home Owner Grant	Stamp Duty Concessions
NSW	$10,000 (new homes under $750k)	Exempt under $800k, discounts up to $1M
VIC	$10,000 (new homes under $750k)	Exempt under $600k, discounts up to $750k
QLD	$15,000 (new homes under $750k)	Exempt under $500k
WA	$10,000 (new homes under $750k)	Concessions available
SA	$15,000 (new homes under $650k)	Some concessions available
TAS	$30,000 (new homes under $750k)	Exempt under $600k
ACT	No FHOG, but reduced stamp duty	Exempt under $1.2M
NT	$10,000 (new homes under $600k)	Concessions available

4. How Election Policies Can Affect Your Deposit Savings & Property Ownership

Each political party has different policies that could impact home affordability and your ability to save for a deposit. Below is a general comparison:

Party	Policies That Impact Savings & Property Ownership
Labor (ALP)	- Expanding shared-equity schemes (Govt. owns % of the home) - Increased funding for affordable housing - Caps on negative gearing (affects investors)
Liberal-National (Coalition)	- Tax incentives for property investment - Expansion of first-home buyer guarantees - Encouraging private sector investment in housing
Greens	- Push for rent control & public housing investment - More aggressive measures against property investors
Independent Candidates	- Vary by policy, some support housing affordability schemes

Play with it !!!

Impact on Your Home Deposit Savings

More Government Shared-Equity Schemes: Could reduce your required deposit by up to 40%.
Changes in First-Home Buyer Grants: Policy shifts could increase or reduce available grants.
Tax Policies on Investors: If negative gearing is removed, investor activity could drop, reducing competition for first-home buyers.

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.

Assumptions for Calculations

Median Property Prices (2024 Estimates)- Property prices are based on the most recent median home values in each city. These values may fluctuate over time.
Deposit Requirement - Standard home loan deposits are assumed to be 20% of the property price to avoid Lenders Mortgage Insurance (LMI). An alternative scenario is considered with a 5% deposit under the First Home Guarantee scheme, where eligible buyers can purchase with government support.
Annual Savings Rate -The calculations assume an individual saves 30% of a $100,000 annual gross income, resulting in savings of $30,000 per year. This savings rate does not account for potential salary increases, bonuses, or additional income sources.
Cost of Living Not Considered - Living expenses, rent, inflation, and lifestyle choices are not factored in, as these vary significantly between individuals. People in higher-cost cities (e.g., Sydney and Melbourne) may find it harder to save at the assumed rate.
Government Grants & Schemes - The impact of stamp duty exemptions, First Home Owner Grants (FHOG), and shared equity schemes is not included in the base calculations. Using these programs could reduce the deposit requirement or provide additional savings.
Dual-Income Households - The calculations assume a single-income household. A dual-income couple could reach savings goals twice as fast, assuming both partners save at similar rates.
Loan-to-Value Ratio (LVR) & Bank Requirements - While a 20% deposit is standard, some lenders may allow home loans with as little as 5-10% deposit, increasing borrowing costs but reducing the savings period.

These assumptions provide a generalised estimate—individual circumstances, market fluctuations, and financial strategies will impact actual results.