Let compounding carry part of the deposit.
A 20% deposit on the national median home now sits above $200,000, and takes the average household around eleven years to save. Over a horizon that long, the monthly figure you actually need is meaningfully lower than target divided by months.
Every dollar you save early keeps working for the whole decade.
Divide a deposit target by the months until settlement and you get the naive answer. It ignores that money contributed in year one keeps earning its return for the remaining ten — and that return compounds.
On a short goal this barely matters. Over a decade it matters enormously: the gap between the naive monthly figure and the real one becomes a genuinely large slice of the deposit that compounding provides rather than you personally saving.
This is also the page where the offset framing needs a caveat. If you're saving a first deposit you likely don't have a mortgage yet, so there's no offset account to hold it in. The mechanic is identical in a high-interest savings account — the rate just comes from a bank rather than from interest you're not being charged. If you're upgrading and already carry a mortgage, the offset version applies directly.
Home deposit Bucket calculator
Models saving toward the deposit itself. Assumes a constant rate across the full period, which real savings rates won't be. Median dwelling value is a national figure and varies substantially by state and property type.
Setting up a home deposit Bucket
Create a Bucket called "Home deposit", set your target and timeframe, and Savvy Dollar works out the real monthly contribution — meaningfully less than the naive number over a multi-year horizon.
Buckets people pair with this one
Common questions
How does an offset account work once I've bought my first home?
Every dollar in your offset reduces the balance your mortgage interest is calculated on. Keep your emergency fund, bills and savings goals in there rather than separate accounts and the whole balance works against your loan. Setting that up from day one is far easier than reorganising later.
How long does it take to save a house deposit in Australia?
Around eleven years for an average household saving a 20% deposit on the national median, though it varies enormously by state and income. Smaller deposits with lenders mortgage insurance, or a guarantor, shorten this considerably.
How much do I need to save each month for a house deposit?
On a $200,000 deposit over five years the naive answer is $3,333 a month. Once you account for the return on early contributions the real figure is lower — the calculator above shows both, and the gap widens the longer your timeframe.
Should I keep my house deposit in an offset account?
If you already have a mortgage and are saving for your next home, yes — it reduces the interest on your current loan while you save. If this is your first home you won't have an offset yet, so a high-interest savings account is the equivalent. The compounding maths is the same either way.
Is a 20% deposit necessary?
No, but below 20% most lenders require lenders mortgage insurance, which is a real additional cost. Some lenders waive it for certain professions, and government schemes exist for eligible first home buyers. Worth checking your eligibility before assuming you need the full amount.
Never mix up the home deposit money again
Set it up as its own Bucket in under two minutes.
Start free with Savvy Dollar