The national median property now requires a $184,568 deposit at 20% — but you probably don't need that much. This guide explains how much you actually need, how long it realistically takes, and the fastest legitimate strategies to get there faster.
The conventional answer is 20% — and that is still the amount needed to avoid Lenders Mortgage Insurance (LMI) without a government scheme. But the 20% figure is misleading for most first home buyers in 2026, because it assumes no access to the substantial government assistance available.
A median-income household saving a full 20% deposit on the national median property price of approximately $922,838 (Cotality, February 2026) would need $184,568 in savings — and at median incomes, that takes approximately 10.6 years. This number is accurate but does not reflect how most first home buyers actually enter the market.
| Approach | Deposit Required ($700k property) | Typical Timeline (median income couple) |
|---|---|---|
| 20% (no LMI, no scheme) | $140,000 | 6–8 years |
| First Home Guarantee (5%, no LMI) | $35,000 | 1.5–2.5 years |
| Help to Buy (2% deposit, government co-purchases 30%) | ~$14,000 | Under 12 months |
| Family Home Guarantee (2%, single parents) | ~$14,000 | Under 12 months |
The right target for you depends on which schemes you qualify for, your income, and what price range you are looking in. For most first home buyers, the First Home Guarantee's 5% deposit threshold is the most accessible realistic target in 2026.
Enter your deposit and purchase price to see your exact monthly repayments and interest cost.
Open Mortgage Calculator →The honest timeline depends on three variables: your income, your expenses, and your deposit target. Here are realistic timelines for different scenarios in June 2026:
| Scenario | Monthly Saving | Interest Rate (savings) | Time to $70,000 (10% deposit on $700k) |
|---|---|---|---|
| Single on $65k, careful budget | $800 | 5.2% | ~6.5 years |
| Single on $90k, disciplined saving | $1,800 | 5.2% | ~3 years |
| Couple on $120k combined | $3,000 | 5.2% | ~2 years |
| Couple on $160k combined | $5,000 | 5.2% | ~13 months |
The difference between 2.5% and 5.2% on a $50,000 savings balance is approximately $1,350 per year in extra interest. Over three years of saving, that compounds to around $4,500 in additional earnings with no extra effort. Regularly comparing savings account rates (not just at account opening) and switching when better rates are available is one of the highest-return, lowest-effort strategies available.
The most consistent savers treat savings as a fixed expense, not an afterthought. Setting up an automatic transfer to your deposit account on the same day your salary arrives — before discretionary spending happens — is the single highest-impact behavioural change for most people. The specific amount matters less than the consistency.
Small daily expenses (the "latte factor") make for good headlines but poor savings advice. The biggest savings wins come from your largest expenses: rent, car costs, and subscriptions. Renting in a cheaper suburb or area for 12–24 months while saving, or eliminating one car from a two-car household, can compress deposit timelines significantly more than cutting coffee.
For anyone earning above $45,000, the FHSS provides a genuine tax advantage on deposit savings. By directing salary into super as voluntary contributions (up to $15,000/year) instead of a savings account, you receive contributions tax of 15% rather than your marginal rate — with the savings released when you are ready to buy. See the FHSS section below for full details.
If you are a first home buyer and your target property is within the price cap for your area, the First Home Guarantee dramatically changes your timeline. Saving 5% instead of 20% on a $700,000 property means targeting $35,000 instead of $140,000 — roughly a quarter of the time to reach your goal.
The FHSS allows you to save up to $50,000 (per person) inside super as voluntary contributions, then withdraw it with associated earnings to use as a house deposit. The tax advantage:
Important process point: You must apply to the ATO to release your FHSS savings before signing a contract to purchase. You have 14 days after the ATO issues your release determination to sign a contract. The process takes approximately 25 business days. Plan accordingly — do not assume you can request the release and have funds available the same week.
Most Australian lenders require at least a portion of your deposit to consist of "genuine savings" — funds that have been in your own name for a specified period, typically at least 3 months. This requirement exists to demonstrate financial discipline and serviceability.
What typically counts as genuine savings:
What may not count (varies by lender):
Check with your lender or mortgage broker early to understand their specific genuine savings policy — especially if you are relying on funds from multiple sources.
Keeping a clear, visible picture of your deposit progress is genuinely useful — both for motivation and for practical planning. The most useful metrics to track monthly:
Can my parents give me money for a house deposit?
Yes, family gifts are a legitimate source of deposit funds. However, many lenders require that gifted funds have been in your account for at least 3 months to count as genuine savings, and some require a statutory declaration confirming the gift is not a loan. Check your specific lender's requirements early in the planning process.
Should I save into super (FHSS) or a regular savings account?
For most people earning above $45,000 who plan to buy in more than 12 months, a combination of both makes sense: save some in a high-interest account for flexibility, and direct voluntary contributions into super via FHSS for the tax advantage. The FHSS process takes time — do not use it for funds you may need to access quickly.
How much should I save per month to buy a house?
This depends entirely on your deposit target and timeline. Using the house deposit calculator on our mortgage page, you can enter your target deposit amount and see exactly how much you need to save per month at current interest rates to reach it within your chosen timeframe.
Does the property price matter when choosing a deposit target?
Yes directly. A $500,000 property requires $25,000 at 5% versus $100,000 at 20%. A $900,000 property requires $45,000 at 5% versus $180,000 at 20%. Being flexible on property price — particularly being open to suburbs or property types that are 10–15% cheaper than your ideal — can dramatically compress your deposit saving timeline.