This is usually the first question people ask, and the answer is not one size fits all.

You do not always need a large deposit. If you have access to a guarantor, you may be able to purchase with little to no savings, subject to lender criteria. If you are eligible for first home buyer incentives, you could potentially purchase a new home with as little as 5% saved, subject to conditions.

The right strategy depends on what support is available to you and how your application is structured. The key is understanding your options properly rather than assuming the highest deposit number you have heard is the only pathway in.

Depending on your eligibility and where you are buying, you may qualify for stamp duty exemptions or concessions. You may be eligible for the 5% deposit scheme, which allows qualifying buyers to avoid paying lenders mortgage insurance. If you are building or purchasing a new home, you may be entitled to the $10,000 First Home Owner Grant.

Certain professions may also qualify for lenders mortgage insurance exemptions up to 95% loan to value ratio, and from time to time some lenders offer cashback incentives to first home buyers, such as $5,000, although these offers and criteria change.

Eligibility requirements apply to all of these schemes, so the value comes from knowing which ones apply to you and how to use them effectively.

Borrowing capacity is different for everyone.

Lenders assess your income, but they also consider your existing liabilities such as credit cards, personal loans, car loans, Buy Now Pay Later accounts and HECS or HELP debts. They will also look at what you spend each month on living expenses.

Two people earning the same income can have very different borrowing capacities depending on their commitments and spending profile. That is why online calculators can only ever provide a rough guide. A proper assessment looks at the full picture.

If you can, yes.

Clear account structure makes it much easier for a lender to understand your financial position and see that you are managing your money consistently.

My recommendation is to keep things simple and structured.

For example:

• A dedicated savings account

• A monthly living expenses account

• An everyday spending account, where your salary is paid and then transferred into your savings and expenses accounts

This approach creates clarity for both you and the lender assessing your application. It is not about being perfect. It is about showing consistency and control over your cash flow.

Your deposit is only part of the equation.

You will also need to factor in conveyancer or solicitor fees, government fees, settlement adjustments and building and pest inspections. These costs can vary, so it is important to include them in your savings plan from the beginning.

A well prepared purchase considers the full cost of buying, not just the contract price.

If you are purchasing an established property, you will need home and contents insurance in place prior to settlement.

Because you are taking on a significant amount of debt, it is also wise to review any personal insurances you hold, such as income protection or life cover. If something unexpected were to happen and you could no longer work, you want to know your repayments are protected.

This is about protecting what you are building, not creating unnecessary fear.

Making additional or increased repayments can help you pay off your loan sooner, reduce the total interest paid over time and build equity in your home more quickly.

Even small extra repayments, made consistently, can make a meaningful difference across the life of a loan. When used strategically, they can shorten the timeline without requiring extreme lifestyle changes.

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