How to prepare your budget for buying your first home.

Buying your first home is an unforgettable milestone, but for many first-home buyers, saving a deposit is often the biggest challenge. If you’re planning to enter the property market in 2026, having a clear savings plan can help you move toward your goal with confidence.

Here are simple, practical budgeting steps to help you build your deposit.

1) Set a clear savings goal

Start by working out how much you need to save. Look at recent sales in the suburbs you’re interested in, then estimate the deposit you’ll require.

You may also want to explore the 5% Deposit Scheme, which allows eligible first-home buyers to enter the market with just 5% deposit without paying LMI. If you’re not using a scheme, aiming for a 20% deposit can help you avoid Lenders Mortgage Insurance.

2) Create a budget you can stick to

Next, map out your monthly income and all your expenses. Include:

• rent
• utilities
• groceries
• insurance
• subscriptions
• car costs
• occasional or unexpected expenses

Budgeting apps can make this easier by tracking your spending automatically and showing where your money is going.

3) Automate your savings

Open a separate savings account. Ideally one with interest and low fees and set up an automatic transfer each payday. Automating your savings builds consistency and shows lenders you have a strong savings habit, which can help during your home loan application.

4) Cut back on non-essentials

Small changes can make a big difference when saving for a home. You might consider:

• reducing dining out or takeaway
• pausing unused subscriptions
• swapping gym memberships for outdoor workouts
• joining the local library instead of buying new books

Many people also try short “no-spend” challenges to reset their habits and boost savings.

5) Explore ways to boost your income

Earning a little extra can accelerate your savings. Options might include:

• taking on extra shifts
• offering tutoring
• starting a side project
• selling unused items like sports gear, furniture or collectibles

Every bit helps when you’re working towards a big goal like a home deposit.

6) Talk about your goals

Sharing your plans with family and friends can help keep you motivated. Social catch-ups might shift to lower-cost activities like picnics or home-cooked dinners, which can make a meaningful difference to your savings over time.

Be prepared for the buying journey

Buying your first home is exciting, and you don’t need to navigate it alone. As your finance broker, we can help you:

• understand your borrowing capacity
• estimate upfront buying costs (like stamp duty and legal fees)
• explore pre-approval options
• check eligibility for incentives such as the First Home Owner Grant or the First Home Super Saver Scheme

If your deposit isn’t quite there yet, we can also discuss alternative pathways to help you get closer to your first home.

Ready to explore your options?

If you’re planning to buy your first home in 2026 and want support with budgeting, savings strategies or understanding your finance options, we’re here to help. Get in touch to start mapping out your path to home ownership.