Savings tips to build your home deposit sooner

Are you struggling to save for your first home? Or perhaps you’re looking to boost your savings to build a bigger deposit than you currently have? As a hard working health professional, you can sometimes be so busy taking care of others that you can lose sight of your own goals.

That’s why we’re here to help. With these simple savings tips for first home buyers, you could be on your way to your first home much sooner than you think.

Disclaimer: The information contained in this article is of a general nature only and should not be taken as financial or legal advice on any of the topics discussed. Always consult a financial adviser before making any investment decisions.

Set up a separate account for your deposit

To help keep your savings on track, set up a separate account that’s only for your home deposit savings. That way you’ll always know how you’re tracking against your goal and, even more importantly, it will make dipping into excess funds for cashflow or other spending much harder to do. And that’s the name of the game! 

Choose a savings account with a competitive interest rate and one that won’t slug you with account fees either. Plus, keep an eye out for products that reward your savings efforts. 

Put a savings plan in place

Savings don’t grow on trees - if only! That’s why you need to put a plan in place to save a set amount of money on a regular basis so you can build your home deposit sooner. To find out how much you should put away, how often, start with your savings target - how much you need for your first home deposit (about 20% of a property’s purchase price) -and work backwards from there.

Have you checked out our savings planner? It’s a great tool that can help you visualise what your savings balance could look like in a matter of months and years when you make regular deposits. 

Start automatic savings

Now that you have your savings plan in place, it’s time to put it in motion. Want a surefire way to do just that? Set up an automatic recurring transfer from your everyday (or spending) account to your home deposit savings account to start saving in your sleep.

Once you’ve set up a recurring transfer, the amount you choose will be automatically transferred to your savings account each week or month so you won’t be tempted to spend it on something else. Just set and forget and you’ll be chasing down your savings target like a champion.

Pro-tip: set your recurring savings amount to come out after your regular pay hits your account. That way you’ll know you have the funds in your account.

Find spending cuts to save more

Find more ways to cut back on spending, big and small, and watch your first home deposit grow. Could you live somewhere cheaper or further away to save a bundle on rent?

Could you live without a car or some of those weekends away if it meant buying your first home sooner? Look for unnecessary spending leaks too, like entertainment subscriptions or gym memberships you don’t use. Hello Uber Eats? Could you limit takeaway or home delivery to once per week? You’ll be surprised how much more you can save when you review your spending habits with a ‘that could be my home deposit’ mind-set.

Find the best home loan deal

It’s a great idea to start doing your home loan homework while you’re building your deposit to find the best value loan for your needs. Different home loan products offer a range of different interest rates, terms and conditions, fees and charges as well as special offers and discounts. For example, our Your Way Plus home loan rewards essential workers with special low rates and benefits.

Find out more about Health Professionals Bank home loans and how you could take advantage of special discounts and lower interest rates exclusively for essential worker legends like you.