How to save for a house deposit

If you’ve started the journey of saving for a house deposit, you’ll know there can be a few hurdles along the way. From how much to save to get started, to saving while paying rent and bills, it can feel a little overwhelming.

Here are five simple tips for how to save for a house deposit quickly, and help with the road ahead.

Top tips for saving for a home deposit

Get professional advice

Before you start saving, it can be helpful to know how much you need for a house deposit. This will usually be between five and 20 percent of the property value. Other factors such as your income, credit score, budget and guarantors can also be an influence.

If it’s your first home loan, it’s worth seeking some professional advice to give you an idea of your borrowing power, and an amount to aim for. As a first port of call though, why not try out our Borrowing Power calculator tool? 

Create an account for your savings  

After your research, you should have a good idea of what you can spend on a property, and what you need to save, so the next step is to open a savings account to get you going. Opening a high interest savings account can not only keep your savings separate from your day-to-day spending, but the interest will help you reach your goal even faster.

Work out a budget

There is no single best way to save for a house deposit, but sitting down with your finances can help you set yourself up for success. Take the time to go through your spending and categorize where your money goes. Make sure you know the dates of your direct debits, so you can be prepared for any bills to be withdrawn.

If you need help budgeting, our mymo app can help you get started. You may also find our article on creating a budget in five steps, helpful.

Cut your daily spending

If you can make some simple sacrifices with your spending, you’ll be surprised at the extra money you can set aside. From small sacrifices like swapping your sugary desk snacks for fruit, to bigger changes like renting out a spare room, you can unlock big savings over time.

Try and make some simple changes to boost your savings - if you think you've done everything you can, check out the bad money habits to break and see if you can save even more.

Set realistic goals

Saving for a house deposit is a journey, but you want to make sure that you can cross the finish line with pride. Make sure you set a goal that is realistic and achievable. Need more information on setting achievable goals? Our article on saving towards goals may help.  

Even though you’re saving, you should still be able to keep-up your lifestyle and social activities. Keeping upbeat and excited only helps you on your savings journey, and you can even celebrate milestones as you go.

If buying your first home is on the horizon for you, you can start your home-owner journey by speaking to a P&N Bank Lending Specialist. Our team of mobile and virtual lenders can visit you at home or work, night or day, weekday or weekend.