Budgeting for a Deposit: A First-Time Buyer’s Guide
Christian Stevens, Mortgage Broker
Published December 11, 2025, 1:19 P.M
Budgeting for a Deposit Learn how first-time buyers can budget for a home deposit, build genuine savings, plan for upfront costs, and access government schemes. Flint helps you structure your savings and prepare for lender approval.
Key Facts
- Saving a deposit is the essential first step toward home ownership in Australia.
- Most lenders require a 5–20% deposit, with additional funds for upfront purchase costs.
- Successful deposit building comes from smart budgeting, consistent savings habits, and strategic account use.
- Government schemes such as FHBG and FHOG can significantly reduce the deposit barrier for first-time buyers.
- Flint helps buyers plan, budget, and structure their finances to reach deposit goals sooner and improve lender readiness.
How Much Deposit Do You Really Need?
Most lenders prefer a 20% deposit to avoid Lenders Mortgage Insurance (LMI). However, many first-time buyers can purchase with as little as 5% — or even 2% when eligible for government-backed programs.
Example:
- Purchase price: $700,000
- 20% deposit = $140,000
- 5% deposit = $35,000 (plus stamp duty, legal fees, inspections, etc.)
What Are Genuine Savings?
Genuine savings refer to money accumulated gradually and held for at least 3 months. Lenders use this to assess your financial discipline and borrowing readiness.
Examples include:
- Regular savings from your pay
- Term deposits
- Rent paid consistently through a property manager (accepted by select lenders)
Smart Budgeting Tips to Reach Your Goal
Steps That Work:
- Set a savings target based on your budget and preferred property price
- Track spending to identify areas where you can reduce costs
- Automate savings into a high-interest or offset account
- Use a budget app or spreadsheet for consistent monitoring
- Consider cheaper rent options or house-sharing to accelerate savings
Other Upfront Costs to Plan For
Beyond the deposit itself, you also need to budget for:
- Stamp duty (unless exempt as a first home buyer)
- Building and pest inspections
- Conveyancing and legal fees
- Loan application, settlement, and valuation fees
- Lenders Mortgage Insurance (LMI) if your deposit is under 20%
Government Help for First-Time Buyers
These programs can help reduce your deposit and overall entry costs:
First Home Guarantee (FHBG): Buy with 5% deposit, no LMI
Family Home Guarantee (FHG): Buy with 2% deposit (for eligible single parents)
First Home Owner Grant (FHOG) & Stamp Duty Concessions: State-based, with potential savings of thousands of dollars
📞 Need Help Planning Your Deposit Pathway?
At Flint, we help:
- Set realistic savings targets based on your financial position
- Navigate first home buyer grants, concessions, and guarantee schemes
- Structure your finances to strengthen lender approval and borrowing power
Talk to Flint today and take the next step toward turning your deposit plan into the keys to your first home.
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