Proven strategies to reach your deposit goal and minimize Lender's Mortgage Insurance
Aim for a 20% deposit to avoid Lender's Mortgage Insurance (LMI). For a $500,000 property, that's $100,000. If you save $1,500/month, you'll reach this goal in 67 months (5.5 years). Accelerate savings using the First Home Saver Account (FHSA), family gifts, and by reducing expenses or increasing income.
Even a 15% deposit ($75,000) is acceptable, though you'll pay LMI. The key is balancing deposit size with timeline, don't delay buying indefinitely waiting for 20%.
| Property Price | 10% Deposit | 15% Deposit | 20% Deposit |
|---|---|---|---|
| $400,000 | $40,000 | $60,000 | $80,000 |
| $500,000 | $50,000 | $75,000 | $100,000 |
| $600,000 | $60,000 | $90,000 | $120,000 |
| $700,000 | $70,000 | $105,000 | $140,000 |
| $800,000 | $80,000 | $120,000 | $160,000 |
Set up automatic transfers from your salary to a dedicated savings account immediately after payday. This "pay yourself first" approach ensures you save consistently without temptation to spend.
Example: Save $1,500/month = $18,000/year. In 5.5 years, you'll have $99,000 (nearly 20% on $500,000 property). Increase to $2,000/month and reach it in 4 years.
The FHSA allows contributions up to $8,000/year (or $16,000 if you have unused capacity) with tax deductions. Withdrawals for home purchase are tax-free. This accelerates deposit saving significantly.
Example: Contribute $8,000/year to FHSA. Over 5 years, you save $40,000 + tax benefits ($8,000-$12,000). Combined with regular savings, reach 20% deposit 1-2 years faster.
Family members can gift money for your deposit. This is a genuine gift (not a loan) and lenders accept it with a signed letter. This can accelerate your timeline significantly.
Example: Parents gift $30,000. Combined with your savings of $70,000, you reach 20% deposit on $500,000 property. Reduces saving timeline by 2-3 years.
Increase savings by increasing income. Side gigs, promotions, or career changes can boost savings rate. Even a $500/month increase accelerates deposit saving significantly.
Example: Increase income by $500/month through side work. Combined with regular $1,500/month savings = $2,000/month total. Reach $100,000 deposit in 4 years instead of 5.5 years.
Cut unnecessary expenses to boost savings. Review subscriptions, dining out, entertainment, and lifestyle costs. Even $500/month in cuts significantly accelerates deposit saving.
Example: Cut $500/month in expenses (subscriptions, dining, entertainment). Combined with regular $1,500/month savings = $2,000/month total. Reach $100,000 deposit in 4 years.
How long to save your deposit? Use this calculator to estimate your timeline based on monthly savings.
Save $1,000/month
Save $1,500/month
Save $2,000/month
Save $2,500/month
Our mortgage brokers will help you create a personalized savings plan and explore all available assistance programs.
Real testimonials from satisfied customers
"Luke helped me get my first home loan. He was extremely helpful throughout the entire process and was on top of everything. Especially as being a first home buyer this was a confusing process but Luke was always available to answer questions I had and was very open and quick to note any changes to my approval process. Thanks heaps Luke. Will definitely use your services again!"
Jake Graceffo
31 Mar 2026