Brighter And some

Long wait to save up for home deposit

by Kate Watt, Marketing Manager 11 October 2018

It's faster to get a newborn to their first day of school than save for a home loan deposit in parts of Australia, according to new research.

New research by on how long it takes to save a home loan deposit in Australia found first home buyers looking for a median-priced unit in Brisbane ($382,601) could take just over two years if they put away $400 a week or four years if they saved $200 a week.

But the shock find was Sydney, where it takes nine and a half years for buyers to putting away $200 a week to afford a median unit ($740,093), and if they doubled their savings – putting in $400 a week – they could have a deposit together in the time it takes to get a newborn to their first day of school – five years.

The savings have to cover a 10 per cent deposit as well as lenders mortgage insurance for first home buyers and stamp duty.

Sally Tindall, RateCity’s research director, told the figures proved that getting a foot in the door was tough but not impossible.

“As the property market declines and investors dip out, there’s now a real opportunity for first home buyers to get into the market,” she said.

“There are a couple of things they can do to maximise their chances of getting a home. They include saving a big enough deposit to avoid paying lenders mortgage insurance and taking advantage of the first homebuyer grants and stamp duty exemptions in your state.”

In the market for your first home? View our listings for sale or contact our team for specialist home buying advice.