Given the climate (eg housing prices, wage growth and living costs)—and despite several targeted Government initiatives—saving a home deposit can be a significant hurdle for first homebuyers, especially one that avoids:
- lenders mortgage insurance, or
- a loan guarantor arrangement.
For example, according to recent data*, nationally, it can take a median-income household, saving 15% of gross annual household income, approximately 10.8 years to save a 20% deposit for a median-priced house.
Importantly, compared to the above, the time taken to save a 20% deposit on a median-priced house is roughly 11.7 years and 9.4 years when considering combined cities and combined regional areas, respectively.
This animation illustrates thoughts and tips on saving a home deposit.
*ANZ and CoreLogic. (2021). Housing Affordability Report.