How to Save for a House Deposit in Australia

Saving for a house deposit in Australia is genuinely hard — but it’s achievable with the right structure. The fastest path combines First Home Super Saver (FHSS) contributions, a high-interest savings account earning close to 5%, and whatever state grants apply to your situation. Most first home buyers need between $50,000 and $130,000 saved, depending on where they’re buying and whether they’re using the federal government’s First Home Guarantee scheme to get in with just 5% down.

General information only. This article does not constitute financial advice. Consider your own circumstances before making investment decisions.

How Much Do You Actually Need?

The number depends on your target market and your appetite for Lender’s Mortgage Insurance (LMI). Lenders typically want 20% to waive LMI entirely, but you can enter the market with as little as 5% under the First Home Guarantee.

In Sydney, the median house price sits around $1.6 million in mid-2026 — making a 20% deposit $320,000, which is unrealistic for most buyers under 40 on a single income. Melbourne’s median is closer to $1.05 million. Units are more workable: Sydney’s median unit price is around $850,000, meaning a 5% deposit under the First Home Guarantee is roughly $42,500.

The First Home Guarantee lets eligible buyers purchase with 5% down, with the government guaranteeing up to 15% of the property value — no LMI required. Income caps apply: $125,000 for singles and $200,000 for couples as at mid-2026. Property price caps vary by state, so check the Housing Australia website for the current figures in your area.

Use the First Home Super Saver Scheme

The FHSS scheme is one of the most underused tools available to first home buyers. You voluntarily contribute extra money into your super fund — up to $15,000 per financial year and $50,000 in total — then withdraw it when you’re ready to buy.

The tax advantage is real. Contributions are taxed at 15% inside super, not your marginal rate (which could be 32.5% or higher). When you withdraw, you’re taxed at your marginal rate minus a 30% tax offset. For someone earning $85,000, the tax saving across $50,000 in FHSS contributions can easily exceed $8,000.

The catch: you must apply to the ATO for a FHSS determination before you sign a purchase contract, and you have 90 days to release the funds after receiving the determination. Don’t leave this step until you’ve found the property — start the process at least four to six weeks before you plan to sign.

Where to Park Your Deposit Savings

The top high-interest savings accounts (HISAs) in Australia are paying between 4.5% and 5.0% p.a. in mid-2026 — but most require monthly conditions like depositing a minimum amount or making a set number of transactions. Missing those conditions typically drops the rate to 0.5% or less, which is a costly mistake.

ING’s Savings Maximiser, Ubank’s Save Account, and Macquarie’s Savings Account consistently rank among the most competitive. The difference between parking $60,000 at 2.5% versus 5.0% is $1,500 per year — over a four-year savings period, that’s $6,000 you’re leaving on the table by using the wrong account.

Don’t leave your deposit sitting in a transaction account for convenience. Set up a dedicated HISA at a separate institution — one with no debit card and a different login — to reduce the temptation to dip into it.

Automate Your Savings Before You Spend

The biggest variable in how long it takes to save a deposit isn’t the interest rate — it’s your savings rate. Automating transfers on payday removes the decision entirely. Direct a fixed percentage of every pay to your HISA before it hits your everyday account. Even 20% of a $75,000 net salary is $15,000 per year — enough to hit a $60,000 deposit in four years without heroics.

Track your spending with apps like Up Bank’s built-in insights or Frollo, which connects to multiple accounts via open banking and categorises every transaction automatically. Seeing exactly how much goes to food delivery versus savings is usually enough of a nudge.

State Grants and Stamp Duty Concessions

State-level help varies significantly and changes regularly, but as at mid-2026:

• NSW: Stamp duty exemption on properties up to $800,000; concessions up to $1 million under the First Home Buyers Assistance Scheme.
• VIC: No stamp duty for first home buyers on properties valued up to $600,000.
• QLD: $30,000 First Home Owner Grant for new builds under $750,000.
• WA: $10,000 First Home Owner Grant for new builds, plus stamp duty concessions.

Always check your state revenue office directly — thresholds and eligibility rules shift, and the dollar values above can change with each state budget.

Frequently Asked Questions

How long does it take to save a house deposit in Australia?

On a single income of $80,000 saving 20% of take-home pay, expect 4–6 years to reach a $100,000 deposit. A dual-income household consistently saving $3,000 per month combined can reach the same target in under three years. Layering in FHSS contributions accelerates the timeline further by reducing the tax you pay on those savings.

Is the First Home Super Saver Scheme worth using?

For anyone in the 32.5% or higher tax bracket, yes — the tax saving is meaningful and the compounding effect over several years adds up. The main downside is the process complexity and timing. You cannot access FHSS funds for costs like stamp duty or conveyancing, so keep those in a HISA alongside your FHSS savings.

Can I combine a HISA with the FHSS scheme?

Absolutely — and you should. Use FHSS for your voluntary super contributions (your tax-advantaged savings pool up to $50,000), and a HISA for any savings above that. Your HISA should also hold funds for purchasing costs — stamp duty, conveyancing fees, building inspections, and moving costs — which cannot be withdrawn from super.