Saving a deposit can feel like watching a finish line move further away. The answer to how long does it take to save for a house deposit depends on your target property, savings rate and deposit size.
This guide shows you the numbers behind a 5% and 20% deposit. You will also see how government schemes, stamp duty concessions, super contributions and local property prices can change your timeline.
Key Takeaways
| Key Point | What It Means |
| 5% deposit | A $800,000 property needs $40,000 before other buying costs. |
| 20% deposit | The same property needs $160,000 before other buying costs. |
| Saving speed matters | Saving $2,000 monthly creates a very different timeline from $1,000. |
| LMI can matter | Borrowing above 80% may result in Lenders Mortgage Insurance. |
| Government support | Eligible buyers may use the First Home Guarantee and FHSS scheme. |
| Stamp duty | State concessions can significantly reduce the cash needed upfront. |
| Borrowing power | Your deposit does not guarantee loan approval because lenders assess serviceability. |
| Property prices | Choosing a different suburb or LGA can dramatically shorten your saving period. |
Deposit Savings Calculator
How this works: This “Time to Save” calculator helps you map out your property journey. Set your target property value and choose your deposit goal (such as a 5% minimum to get in early, or 20% to avoid LMI). By inputting your current savings and monthly contributions, the calculator will instantly reveal your remaining shortfall and exactly how many years and months it will take to hit your target!
Your Savings Plan
Time to Reach Goal
Target Deposit (20%)
$160,000
Remaining Shortfall
$115,000
Disclaimer: This calculator estimates the time required to save a specific deposit amount. It does not account for interest earned on your savings, inflation of property prices, or upfront purchasing costs like stamp duty and conveyancing fees.
How Long Does It Take To Save A House Deposit?
Your timeline comes down to one simple calculation.
Deposit required ÷ monthly savings = approximate months required.
For example, a $800,000 property requires $40,000 for a 5% deposit.
Saving $2,000 each month would take about 20 months.
A 20% deposit would require $160,000. At the same savings rate, that would take 80 months.
That creates a four-year difference between the two deposit targets.
However, this calculation excludes interest earned on savings, property price changes and buying costs. Your actual timeline can therefore change.
Moneysmart recommends aiming for 20% of the purchase price plus enough to cover buying costs. A 20% deposit can also avoid LMI.
The 5% Versus 20% Deposit Gap
The biggest mistake is assuming you need to save 20% before you can start looking.
A smaller deposit may allow you to enter the market earlier. However, it can increase your borrowing and potentially add LMI.
Consider an $800,000 property.
| Deposit | Amount Saved | Monthly Savings | Approximate Saving Time |
| 5% | $40,000 | $2,000 | 1 year 8 months |
| 10% | $80,000 | $2,000 | 3 years 4 months |
| 15% | $120,000 | $2,000 | 5 years |
| 20% | $160,000 | $2,000 | 6 years 8 months |
The difference between 5% and 20% is $120,000.
At $2,000 per month, that difference represents five additional years of saving.
This is the dual affordability gap.
You are not only deciding whether you can afford the property. You are deciding how long you can afford to wait.
What Costs Do You Need Besides The Deposit?
Your deposit is only one part of the cash you need.
Moneysmart recommends budgeting for costs such as stamp duty, legal fees and inspections.
Common upfront costs include:
- Stamp duty: State or territory transfer taxes can add thousands to your purchase unless an exemption applies.
- Conveyancing: A solicitor or conveyancer reviews contracts and handles the legal transfer.
- Building and pest inspections: These reports can identify expensive structural or pest problems before purchase.
- Loan costs: Some lenders charge application, valuation or settlement-related fees.
- Moving costs: Your budget should include removalists, utility connections and immediate household expenses.
- Emergency savings: Keeping a cash buffer can prevent unexpected costs from forcing you into additional debt.
This means your real savings target should usually exceed the deposit percentage.
Upfront Costs Calculator
Estimated Fees & Charges
Total Cash Required
Your Deposit
$160,000
Total Fees & Charges
$34,250
Loan Amount Required
$640,000
Tip for Stamp Duty: The stamp duty field above is an editable estimate. For an exact figure, please use our dedicated State Stamp Duty calculators, as costs vary drastically based on location and First Home Buyer status.
Disclaimer: This calculator provides an estimate of typical upfront purchasing costs and is for illustrative purposes only. Default fees are estimates and vary between providers. Results do not constitute a quote or financial advice.
How Lenders Mortgage Insurance Changes The Equation
Lenders Mortgage Insurance protects the lender rather than the borrower.
It commonly applies when you borrow more than 80% of a property’s value. The exact policy varies between lenders.
Therefore, a 5% deposit can involve an additional cost unless a government guarantee or lender policy removes the LMI requirement.
This creates an important trade-off.
Saving for 20% can take much longer. However, you may borrow less and avoid LMI.
Saving 5% can get you into the market sooner. However, your loan will be larger relative to the property value.
The right target depends on your circumstances rather than one universal percentage.
How The Australian Government’s 5% Deposit Scheme Can Reduce Your Waiting Time
The Australian Government’s 5% Deposit Scheme allows eligible first home buyers to purchase with a deposit as low as 5%.
Housing Australia explains that the guarantee can support borrowing up to 95% of the property’s value. The participating lender still assesses your application.
From 1 October 2025, the scheme was expanded and rebranded as the Australian Government 5% Deposit Scheme. The changes removed income caps and increased access to the scheme.
The scheme does not mean every property qualifies.
Property price caps still apply by location. Your lender also needs to confirm the property’s value and your eligibility.
Therefore, a 5% deposit can shorten your saving period without automatically making the purchase affordable.
How The First Home Super Saver Scheme Can Help
The First Home Super Saver Scheme allows eligible first home buyers to use voluntary super contributions towards their first home.
The current FHSS limits allow up to $15,000 of eligible contributions from any one financial year. The total eligible contribution limit is $50,000 across all years. Associated earnings can also form part of the released amount.
This can accelerate your deposit because eligible concessional contributions may receive tax treatment different from ordinary savings.
However, FHSS rules are detailed.
You need to understand contribution eligibility, release requirements and timing before relying on the scheme.
The ATO also states that you should request an FHSS determination before property ownership transfers to you.
For some buyers, FHSS can effectively create a second savings channel.
How Stamp Duty Concessions Affect Your Deposit Timeline
Stamp duty can change how much cash you need before settlement.
Importantly, state and territory rules differ.
The following table summarises major 2025 thresholds and concessions. Rules have changed since then, so always verify the current position before purchasing.
| State/Territory | 2025 First Home Buyer Duty Position |
| NSW | Full exemption up to $800,000, with a concession below $1 million. |
| Victoria | No duty up to $600,000, with a concession from $600,001 to $750,000. |
| Queensland | First home concession threshold of $700,000, phasing out at $800,000. |
| Western Australia | No duty up to $500,000, with concessions available above that threshold under 2025 rules. |
| South Australia | From 13 February 2025, eligible first home buyers received full stamp duty relief regardless of property value. |
| Tasmania | A full exemption applied to eligible established homes up to $750,000 until 30 June 2026. |
| ACT | The 2025–26 threshold increased to $1.02 million for eligible buyers. |
NSW confirms the $800,000 exemption and concessional treatment below $1 million.
Victoria provides a full exemption up to $600,000 and a concession between $600,001 and $750,000.
Queensland increased its first home concession threshold to $700,000 and its phase-out threshold to $800,000 from 9 June 2024.
WA’s 2025 threshold provided no duty up to $500,000. The threshold has since increased to $600,000 from 7 May 2026.
South Australia introduced full stamp duty relief for eligible first home buyers from 13 February 2025, regardless of property value.
Tasmania’s $750,000 exemption applied to eligible established homes settling by 30 June 2026.
The ACT increased its 2025–26 property value threshold to $1.02 million before removing the property value limit from 1 July 2026.
Why Genuine Savings Can Matter
Some lenders assess whether your deposit demonstrates a genuine savings history.
Genuine savings generally means money you have accumulated or held over a qualifying period.
Lender policies differ.
Some may accept certain savings accounts, term deposits or other eligible funds. Others may apply specific evidence requirements.
Therefore, avoid assuming that every dollar you receive can automatically count towards your deposit.
A large gift, inheritance or asset sale may be treated differently from money you have consistently saved.
Check the lender’s current policy before setting your strategy.
Your Deposit Is Not The Same As Your Borrowing Capacity
Having enough savings does not guarantee approval.
Lenders assess your income, expenses, debts, credit history and proposed loan.
They also consider whether you can continue making repayments under higher assessed interest rates.
APRA has confirmed that the mortgage serviceability buffer remains at 3 percentage points.
This means lenders assess borrowers above the actual loan rate when applying the standard serviceability test.
Your savings plan therefore needs two targets.
The first is your cash target.
The second is your borrowing and repayment target.
Both need to work together.
Read more: How is borrowing power calculated in Australia?
Actionable Steps To Save For A House Deposit
Small changes can make a large difference when maintained consistently.
- Automate your savings: Transfer your chosen amount immediately after payday so saving becomes a routine expense.
- Separate your deposit account: Keeping deposit money away from everyday spending reduces accidental withdrawals.
- Increase your savings after pay rises: Directing part of every salary increase towards your deposit can accelerate progress.
- Reduce large recurring costs: Reviewing rent, transport, subscriptions and insurance can uncover meaningful monthly savings.
- Clear expensive debts: Reducing high-cost debt can improve both your cash flow and future borrowing position.
- Save windfalls: Directing bonuses, tax refunds and eligible extra income towards your goal can shorten the timeline.
- Review your target regularly: Recheck property prices and buying costs so your savings goal remains realistic.
- Consider FHSS contributions: Eligible voluntary super contributions can provide another pathway towards your first home deposit.
The objective is not to make every month perfect.
The objective is to create a savings system that continues working when motivation disappears.
Conclusion
The answer to how long does it take to save for a house deposit is different for every buyer.
A $800,000 property needs $40,000 for a 5% deposit. The same property needs $160,000 for 20%.
At $2,000 per month, that creates a 20-month versus 80-month saving timeline.
However, the deposit is only one part of the equation.
Stamp duty, legal costs, inspections and other expenses can increase your upfront cash requirement.
Government schemes can reduce the amount you need to save before purchasing. The First Home Guarantee may support eligible buyers with a 5% deposit. FHSS can provide another way to build eligible deposit funds.
Ultimately, the strongest strategy balances deposit size, property price, borrowing capacity and future repayments.
The fastest path is not necessarily saving the largest deposit.
It is finding a purchase price and deposit strategy that you can realistically sustain.
Frequently Asked Questions
How Long Does It Take To Save A 5% House Deposit?
The timeline depends on your property price and monthly savings. A $40,000 deposit takes 20 months when you save $2,000 monthly.
How Long Does It Take To Save A 20% House Deposit?
A $160,000 deposit takes 80 months when you save $2,000 monthly. Increasing your monthly savings can reduce this timeframe significantly.
Is A 5% Deposit Enough To Buy A House?
A 5% deposit can be enough for eligible buyers under government schemes. Your lender must still approve your borrowing and assess the property.
Do You Need 20% To Avoid LMI?
Generally, borrowing above 80% of the property’s value may result in LMI. Some government schemes can help eligible buyers avoid this cost.
Can Superannuation Be Used For A House Deposit?
Eligible first home buyers may use the First Home Super Saver Scheme to release qualifying voluntary super contributions. The scheme has specific contribution and release rules.
How Much Deposit Do I Need For An $800,000 House?
A 5% deposit is $40,000. A 10% deposit is $80,000, while a 20% deposit is $160,000.
Does Stamp Duty Count Towards The Deposit?
Stamp duty is generally a separate purchasing cost. However, eligible first home buyers may qualify for state or territory concessions or exemptions.
What Is The Fastest Way To Save A House Deposit?
The fastest approach combines a realistic property target with a high and sustainable savings rate. Government schemes may also reduce the amount you need upfront.
Financial disclaimer: This article provides general information only and does not constitute personal financial, credit, legal or tax advice. Government schemes, lender policies, property values and state duty rules can change. Check the current requirements with the relevant government authority and lender before making a financial decision.
