Saving for a house deposit is often the biggest hurdle for first home buyers. With property prices in major cities requiring substantial deposits, smart strategies can help you reach your goal faster.
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First Home Super Saver Scheme (FHSSS)
The FHSSS allows you to save money for your first home inside your superannuation fund, offering tax advantages. You can withdraw up to $50,000 in voluntary contributions.
Benefits of FHSSS:
- Contributions are taxed at 15% instead of your marginal rate
- Earnings accrue at the SG rate (currently around 5-6%)
- Structured savings with less temptation to spend
Family Guarantee (Guarantor) Loans
Parents or close family members can use equity in their own property to guarantee part of your loan, potentially allowing you to buy with as little as 5% deposit without LMI.
Government Shared Equity Schemes
Programs like Help to Buy (launching 2024) allow the government to contribute up to 40% equity for new homes, reducing your deposit and loan requirements.
Traditional Savings Strategies
- High-interest savings accounts with bonus rates
- Term deposits for larger sums
- Automated savings transfers
- Reducing discretionary spending