Tips to help you save for your first home

Are your first home dreams feeling a little out of reach? Perhaps you’ve been too focused on your students’ needs to put your own goals into motion? Or maybe you’re looking to super-charge your savings to build a bigger deposit? 

No matter where you’re at in your journey, these first home buyer savings tips could help you get there 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 dedicated savings account

Instead of opting for a single account with one pot of savings that’s hard to keep track of and, let’s face it, all too easy to dip into, setting up a separate ‘do not touch’ account for your home deposit savings only, will help you stay on track. 

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 like our Reward Saver Account that lets you earn bonus interest when you save as little as $50 each month and make no withdrawals. 

Create a savings plan

Savings don’t just happen (worse luck!). Making progress on your first home buying journey means creating a savings plan to put aside a set-amount of money on a regular basis. Start by working out your savings target - how much you’re going to need for your deposit (around 20% of a property’s purchase price) - and work backwards from there to see how much you need to put away.

Our savings planner is an awesome tool that can help you visualise what your savings balance could look like in a matter of months and years with regular deposits. 

Set up an automatic savings transfer

So you’ve got your home deposit account set-up and a red hot savings plan to help you reach your target. Now to make it happen - and setting up an automatic recurring transfer from your everyday account to your savings account is a surefire way to do just that.

Once you set up a recurring transfer, the set 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 that home deposit goal like a champion.

Pro-tip: set your recurring transfer to come out after your regular pay gets deposited so you know you’ll have the funds in your account.

Put spending under the microscope

Boost your savings by finding ways to cut back on spending, big and small. Could you live further away to save on rent or sell your car and use PT instead? On the smaller side of things, look for unnecessary spending leaks like entertainment subscriptions or gym memberships you don’t really use. And hello Uber Eats? Could we limit that to once per week? You’ll be surprised how much more you can save when you take a good hard look at your spending habits with a ‘that could be my home deposit’ mind-set.

Do your home loan homework

Not all home loans are created equal, so it’s a great idea to start doing your homework 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 Teachers Mutual Bank home loans and how you could make the most of special discounts and even lower interest rates exclusively for essential worker legends like you.