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  • How hard is it to save for a home deposit?

    How hard is it to save for a home deposit?

    The average time it takes to save a home deposit is now as long as 10 years for some Sydneysiders! But it’s not a hopeless case. There are plenty of ways to get your savings in order to help you get into the property market.

    RAMS Franchise Principal, Matthew Clark, says the reason it takes first-home buyers a while to pull together a deposit these days is most likely due to the nature of the market, plus a combination of the cost of living and stagnant wage growth.

    “Prices have gone up a bit in the past five years, which drives deposits up. Also, some of the lending options have rolled back too. For example, the days of no-deposit home loans are becoming less frequent. Although you don’t necessarily need a 20% deposit, 5% may not always be enough either,” he explains. 

    How hard is it to save for a deposit - Helena-Lopes

    It’s taking longer for people to save home deposits. Picture: Helena Lopes

    “The other consideration is the cost of living. People might have less disposable income to save, whether they’re spending it on rent or just general living expenses.”

    4 tips to help you get ahead in the savings race

    The important thing to remember though is saving for a home deposit is not impossible. There are a lot of options to help first home buyers and we’ve found just a few to help you maximise your savings.

    1.     Take advantage of helpful tools

    “There are a lot of different online budgeting tools, saving planners and goal-setting tools that will help you start saving,” Clark says.

    If you’re just starting on your journey, RAMS have a number of savings calculators to help you figure out how much to save.

    For example, one of these calculators can tell you the amount you will save if you put away $X for Y months. Another version allows you to input your savings goal, and then calculate how long it will take you to get there. This can be very helpful if you’re working towards a particular home deposit.

    2.      Start saving ASAP

    Even if you’re not close to thinking of buying a home, you’re never too young to start saving.

    “The sooner you start, the better. Make it a normal habit,” Clark suggests.

    “So, you could set up direct transactions from your wages to your savings, or if you get a pay rise, direct the excess straight to your savings. Then you could try to limit your discretionary spending, if that’s possible.”

    How hard is it to save for a deposit - George Hodan

    Start saving early and get organised. Picture: George Hodan

    Clark also notes that the most successful savers he’s come across are always well organised, in that they had put together a budget and knew where their money was being spent.

    “One of the first steps is to track where you’re spending your money. Then look at where you could potentially save money, and ways to maximise the amount of income you save,” he says.

    Just take it one step at a time, and play the long game. It’s a lot less stressful than trying to pull together a deposit at the last minute.

    3.     Seek advice

    If finances have never been your strong suit and you want to buy a home, it might be wise to seek some professional financial advice. While you can always pay for a financial advisor who will offer financial and investment advice (including stocks and bonds), you can also talk to a home loan specialist, who will offer guidance specific to your property-related goals.

    “Talk to your lender. They’re used to dealing with first home buyers and they’ll happily sit down and work through your borrowing options,” Clark advises. 

    How hard is it to save for a deposit - Mentatdgt

    Get some financial advice from an expert, but having support networks can also help you save. Picture: Mentatdgt

    “They can help you set a budget so you can put a plan in place to get your first home sooner.

    “It also helps to have a support person, perhaps a friend, mentor or family member, someone you can talk to and get help when needed.”

    4.     Assess loan options

    As Clark notes, there are some cases when people have used a guarantor and not needed a deposit.

    “Depending on the guarantors’ situation subject to the lending criteria, a guarantor can enable someone to buy a house with no deposit at all. That is one way to fast track your way to a home,” he says.

    How hard is it to save for a deposit - Wikimedia

    Financial assistance in the form of a guarantor loan could help you get into your first home. Picture: Wikimedia

    However, guarantor loans are not available to everybody and it could leave your guarantor liable if you are unable to meet your repayments. It is important to assess your loan options with a home loan specialist who understands your specific financial position and situation.

    Originally published on as ‘How hard is it to save for a home deposit?’ on


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    About the author

    • Raymond

      Raymond A Ram is the RAMbassador for RAMS Financial Group. Raymond works with the RAMS team to bring simple, helpful and expert information on home loans and savings accounts to life with his down to earth and cheeky personality. He enjoys seeing everyday Australians turn their dreams of saving for a goal or getting into a home a reality. 

      Growing up in Goulburn, NSW, Raymond was brought up with good old-fashioned Aussie values of hard work and a fair go. It soon became apparent that Raymond wasn't content for the conventional path of grazing, producing the very best wool, and finding a nice sheep to settle down with. So it wasn't long before his passion for performing and his talent as a likeable larrikin shone through - landing him a few roles such as 'RAMlet'. He was even tipped to play RAM-bo at one point but chose to become star of the small screen instead as RAMbassador for RAMS. He now finds this role so much more rewarding.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Raymond A Ram

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  • Disclaimer:

    This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.