Home loan comparison

Lender

Variable
More details

loans.com.au – Variable Home Loan (LVR < 90%)

    Variable
    More details

    HSBC – Home Value Home Loan (Principal and Interest) (LVR < 80%)

      Fixed
      More details

      Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 1 Year

        Variable
        More details

        Beyond Bank – Purple Basic Variable Home Loan (New Customer) (LVR 60%-80%)

          Variable
          More details

          Athena – Straight Up Owner Occupied - Celebrate (LVR 50%-60%) (Principal and Interest)

            Fixed
            More details

            IMB Bank – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR ≤ 80%)

              Variable
              More details

              Liberty Financial – Liberty Low Rate Home Loan (LVR < 95%)

                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 25, 2024. View disclaimer.

                Powered by:
                Powered by savings image Savings.com.au
                Savings.com.au Pty Ltd ACN 161 358 363 | Australian Financial Services Licence and Australian Credit Licence 515843

                Calculator Assumptions: How Long does it takes to Save for a Home Deposit?

                This calculator provides you with an indication of how long it may take you to save a suitable deposit.

                The calculator does not take into account any government charges or fees.

                How much savings do you need for a home deposit?

                First time home buyers should set aside at least 20% of the property value. So if you’re looking to buy a house that’s worth $300,000, you may need to save up $60,000 for the deposit.

                Having at least 20% of the purchase price has many advantages. It can increase your chance of getting your home loan approved, you may be offered a lower interest rate, and you will avoid paying Lender’s Mortgage Insurance (LMI). LMI is an insurance policy designed to protect lenders in case the borrower is unable to repay the loan. 

                If saving 20% of the house price is out of reach, you can consider putting down a smaller deposit on your home, however this is likely to result in LMI being charged. You can use our LMI calculator to know the cost of your LMI payments. If you don’t have 20% deposit but would still like to purchase a home, you may wish to consider taking out a home loan with a guarantor. A guarantor is a person who agrees to be responsible for your loan in the instance you are unable to meet your ongoing repayments.

                How long does it take on average to save for a house deposit? 

                The average time in Australia to save for a house deposit will depend on a lot of things. It will depend on where you are buying, the type of property you are buying (house or unit), your income and whether you are saving alone or with someone else. 

                According to Corelogic and ABS data, here is the average time it takes to save up for the deposit per capital state:

                Capital state Median House Price Deposit (20%) Average weekly household income Months to save assuming saving 20% of income
                Sydney $872,934 $174,586 $2,117 8 years
                Melbourne $689,099 $137,819 $1,885 7 years and 1 month
                Brisbane $503,265 $100,653 $1,887 5 years and 2 months
                Perth $439,453 $87,890 $1,972 4 years and 4 months
                Adelaide $442,691 $88,538 $1,600 5 years and 4 months
                Canberra $488,968 $97,793 $2,344 4 years and 1 month
                Hobart $386,345 $77,269 $1,555 4 years and 10 months
                Darwin $631,862 $126,372 $2,410 5 years and 1 month

                You can use our calculator to work out how long it will take you to achieve your home deposit goal.

                Do deposit requirements vary per state or capital city?

                As deposit requirements are determined by the financial institution, they are unlikely to differ per state or capital city, however the housing market and the house prices will vary per state and capital city. So the average time to save for a house deposit will be different and depends on the location, property type, and your own financial circumstances

                How does having a larger deposit save you money?

                While it may delay buying a house, the biggest advantage of a larger deposit is a smaller loan size. Having a smaller loan size means you will be charged less interest, and your monthly loan repayments will be less. A smaller loan size can make it easier to refinance down the track especially if guarantor is not an option.

                Is it better to save more of a deposit first or purchase property now?

                Saving for a deposit may take a while, during which the purchase price of the property may increase whi could result in needing to save more for the deposit. You will need to do your own research in terms of assessing the forecasted growth in the state you are buying in, and reviewing if its affordable for you to have a larger loan amount.

                What is some key advice to save for a house deposit?

                Here are some strategies that could help you save for a house deposit quicker:

                Explore savings accounts + savings plans

                Take advantage of savings accounts with a high interest rate. It could help you grow your savings as you earn from interest. You can use our savings calculator to see how much you can save with your interest rate and how long you can achieve your saving target.

                Explore any government subsidies for first time buyers

                There is a national scheme that could help first time home buyers own their first home called First Home Owner Grant or FHOG. The amount of the grant will vary by state and territory. You can check if you are eligible for one by lodging an application through your state or territory. 

                Reduce any obvious costs

                Get an understanding of your budget and see where you can reduce any of your expenses. You may need to have a lifestyle change like cutting down on everyday spending, such as reducing household expenditures on groceries or utility bills.

                Increase your income

                One of the best ways to boost your house deposit savings is by earning more. Although this is easier said than done, it may be helpful for you to consider a small side-gig, or even just selling unused things around your home on sites like Gumtree or Ebay.

                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of 9 July 2024.

                ^The addition of offset sub-account means your comparison rate will change.

                Powered by:
                Powered by savings image Savings.com.au
                Savings.com.au Pty Ltd ACN 161 358 363 | Australian Financial Services Licence and Australian Credit Licence 515843