If you're saving $1,500 a month for a 20% deposit on an $800,000 home, you're looking at almost nine years. Most people give up long before that, or the goal moves on them.
The good news is that the target doesn't have to be 20%, and there are ways to save faster that don't involve giving up every coffee.
Work out your real target first
Your target is your deposit plus upfront costs, minus any help you qualify for.
| Purchase price $800,000 | 20% path | 5% Deposit Scheme path |
|---|---|---|
| Deposit | $160,000 | $40,000 |
| Stamp duty (NSW first home buyer) | $0 | $0 |
| Costs and buffer | $8,000 | $8,000 |
| Total needed | $168,000 | $48,000 |
At $1,500 a month, that's 112 months versus 32 months. The scheme takes about six years off the timeline for this buyer.
So step one isn't a budget. It's finding out which schemes you qualify for.
Ways to save faster
1. Use the First Home Super Saver scheme
Salary sacrificing into super for your deposit means your savings are taxed at 15% going in, instead of your marginal rate. On a $95,000 salary, that's roughly $1,700 extra a year for every $10,000 you put aside. See our FHSS guide.
2. Automate it
Set up a transfer on payday into a separate high-interest savings account. What you don't see, you don't spend. This also builds the "genuine savings" history lenders like.
3. Cut the big costs, not the small ones
Skipping takeaway helps a little. Reducing rent, a car loan or insurance premiums helps a lot. Some ideas:
- Move in with family or share for 12 months
- Sell a second car or downgrade a financed one
- Shop around for insurance, phone and energy each year
4. Clear expensive debt first
Paying 20% interest on a credit card while earning 5% on savings is going backwards. Clear it, then close the card or lower the limit. Lower limits also improve your borrowing power.
5. Put windfalls straight in
Tax refunds, bonuses and gifts can make a big dent. Treat them as deposit money by default.
6. Earn more
A side income, overtime or asking for a pay rise can do more than any budget. Lenders will usually count regular overtime or second-job income once it's been consistent for a period, often 6 to 12 months.
Consider family help
If parents or family are in a position to help, there are options beyond a cash gift:
- Family guarantee: they guarantee part of your loan with equity in their home. No cash changes hands.
- Gifted deposit: a non-repayable gift, documented with a gift letter.
- Living at home rent-free while you save.
Each has risks for the family member, so get proper advice.
Is saving longer ever the right call?
Sometimes. If your job is new or uncertain, if you've got high debts, or if repayments on a 95% loan would leave you stretched, a bit more time can be sensible. A bigger deposit means a smaller loan, lower repayments and more equity if values dip.
The key is making it a deliberate choice rather than the default.
Track your progress
Lenders want to see three months of statements showing regular saving. Start that pattern now, even if you're a year or more away. It makes pre-approval smoother when you're ready.
Frequently asked questions
Where should I keep my deposit savings?
A high-interest savings account in your name is usually best. Avoid putting a short-term deposit in shares or crypto, because the value can fall right when you need it.
Does rent count as savings?
Some lenders accept 12 months of on-time rent payments as genuine savings for part of the deposit. Policies vary.
How much should I save each month?
Work backwards from your target and timeline. If the number looks impossible, check which schemes reduce the target before cutting your budget to the bone.
Want to see how fast you could realistically buy? Call Finfident on 0424 545 654. We'll calculate your real deposit target based on the schemes you qualify for.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.