Your budgeting guide to buying your first home

Nothing compares to that feeling of buying your first home. If you’re planning a 2026 property purchase, saving the deposit is often one of the biggest hurdles. Careful planning and perseverance can play a role in working towards this goal.

Here are some tips to help you work towards your savings target.

Set a savings goal

The first step is to work out how much you’ll need for your deposit. Check out what properties in your preferred suburbs are selling for, and from there, you can work backwards and estimate the amount of deposit you’ll require.

You may like to look into the Australian Government’s 5% Deposit Scheme, which allows eligible first-home buyers to enter the market with just 5% deposit. If you’re not planning to use the scheme, aiming for a 20% deposit may help you avoid lenders’ mortgage insurance (LMI).

Create a budget

Next, create a monthly budget. This can help you to understand how much you may be able to save.

Factor in your total monthly income after tax, then list all of your expenses. Don’t forget to include regular costs like rent, utility bills, insurance, and streaming services, as well as unexpected expenses like your car repairs.

There are loads of budgeting tools available to help with tracking expenses. Some apps even break down and track your expenses as well as provide suggestions to help you work towards your saving goals.

Automate your savings payments

If you don’t have a separate savings account yet, opening one may be a useful first step – for example, an account that offers interest and has low or no ongoing fees.

Setting up an automatic monthly transfer may help you build savings over time, with less day-to-day effort.

A strong savings track record is something lenders look for when assessing home loan applications, so this habit may be relevant when you’re preparing to buy.

Reduce spending

If you’re looking to make progress towards your savings goals, you may need to cut down on discretionary spending. That might mean saying goodbye to your gym membership and instead exercising outdoors. Joining the local library instead of buying books new. Or cutting down on meals out and limiting entertainment such as streaming services.

There are also ‘no spend challenges’ shared on social media, such as limiting clothing purchases for a period of time or reducing how often you eat out. Some people find these approaches to be helpful when reviewing their spending habits.

Ways to increase income

Some people consider ways to generate additional income when working towards a savings goal. This might include options such as tutoring, taking on additional hours at work, or exploring a side project.

You may also choose to review items you no longer use, such as sporting equipment, musical instruments or collectibles, and consider whether selling them aligns with your circumstances. Small amounts can contribute towards a savings goal over time.

Talk openly about your goals

Talking to your family and friends about your home buying goals can be helpful for some people in staying mindful of their plans. Social catch ups might look a little different in 2026, such as more dinners at home with friends rather than going out. Over time, these adjustments may support your savings efforts.

Being prepared

Buying your first home is exciting, and we’re here to provide information and support throughout the process.

As your finance broker, we can help you understand how much you may be able to borrow, explain the costs involved in buying a home (such as stamp duty and legal fees), and discuss finance options including pre-approval.

We can also explain whether you’re eligible for government incentives, such as the First Home Owner Grant or the First Home Super Saver Scheme. And if your deposit isn’t quite there yet, we can talk through what alternative options could be available to you.

Get in touch if you’d like to discuss your options.